Guide
Tenant screening in NYC: what owners can legally check
New York City owners can still screen on credit, income and references, but state and city law now set both the limits and the order. The application fee is capped at $20, criminal history waits until after a written conditional offer, past housing court cases cannot count against anyone, and a housing voucher has to be treated as income.
The application
What can you charge for a rental application in NYC?
Twenty dollars at most, and only to cover a background or credit check. Nothing else about processing an application can be charged for.
New York Real Property Law § 238-a limits the fee to the actual cost of the background and credit checks or $20, whichever is less. It applies statewide, to every rental apartment, regardless of building size.
Two conditions come with it. You have to give the applicant a copy of the check and the receipt or invoice for it. And if the applicant hands you their own background or credit check from within the past 30 days, you have to waive the fee.
Source: N.Y. Real Property Law § 238-a.
Holding deposits and voucher holders
CCHR, the city agency that enforces the NYC Human Rights Law, says in its guidance that asking a voucher holder for upfront fees or deposits above $20 may itself be evidence of source of income discrimination, and gives a deposit to “hold” an apartment as its example. CCHR, source of income FAQ (March 2023).
Criminal history
Can you run a criminal background check on an applicant in NYC?
Only after you have made a written conditional offer, and only within narrow limits. That has been the rule since January 1, 2025, under the NYC Fair Chance Housing Law.
The law does not require a criminal check at all. You can approve an applicant without one, and many owners will find that simpler. What it changes is when and how you are allowed to run one if you choose to.
Before the offer, nothing. You cannot ask about criminal history in person or in writing, you cannot search for it, and you cannot put statements about background checks or criminal records in the listing or the application. The familiar “background check required” line in a listing is itself a violation.
The offer has to be real. A conditional offer means a written lease or rental agreement that commits the unit to the applicant. You must assess their general eligibility, meaning their ability to meet the lease terms, before making it.
What can be considered after the offer, and what never can?
| Reviewable after a conditional offer | Never reviewable |
|---|---|
The 3 or 5 years run from the actual release date, or from sentencing if there was no jail or prison time. |
|
If something turns up. You must give the applicant a copy of all the criminal history you received or reviewed, then allow them 5 business days to point out errors, flag anything that should not have been considered, or send supporting information, while you hold the unit open. You then have to complete an individualized assessment, even if they send nothing.
Revoking the offer. There are only two grounds. One is new information unrelated to criminal history that affects their qualifications and that you did not know when you made the offer. The other is a legitimate business interest that is specific and objective, set out in writing together with how it links to this person's individual history. The existence of a conviction alone never establishes that link, and CCHR lists “my insurance rates will go up” and “this will impact my property value” among reasons that do not qualify.
Who is exempt. Properties with 2 or fewer rooms or units where the housing provider lives, and state or federally funded housing that is required or authorized to act on criminal history.
Source: CCHR, NYC Fair Chance Housing Notice: Criminal Records. Before running a check, you must also give the applicant a copy of that notice.
Housing court history
Can you turn down an applicant for a past housing court case?
No. New York State law bars refusing to rent to someone because they were involved in a past or pending landlord-tenant action.
The part that catches owners out is the presumption in Real Property Law § 227-f. If you request information about an applicant from a tenant screening bureau, or look at their court records, and then refuse to rent to them, the law presumes you broke it. You would have to rebut that. The Attorney General can seek a civil penalty of $500 to $1,000 for each violation.
In practice, if the screening report you use includes housing court records, the cleanest course is to ask your provider to leave them out, so the presumption never arises.
Source: N.Y. Real Property Law § 227-f.
Vouchers and income
How do income requirements work when an applicant has a housing voucher?
A voucher is income, and refusing one has been illegal in New York City since 2008. Where the voucher covers the rent, the usual income and credit tests largely stop applying.
The NYC Human Rights Law protects “lawful source of income”: Section 8, CityFHEPS, HASA, SSI, G.I. Bill housing allowances and other forms of public assistance. You also cannot accept some programs and not others, even when one involves more paperwork or a longer approval.
| The applicant's voucher | Minimum income | Credit |
|---|---|---|
| Covers 100% of the rent | Cannot insist on a minimum income or proof of employment | Should not be rejected on credit |
| Sets the tenant's share from their income, like Section 8 | Cannot reject for insufficient income if the program would approve the rent | May be considered case by case, for the portion they pay |
In both cases you cannot require a guarantor or co-signer. CCHR also warns that requiring a minimum credit score of every applicant may itself violate the law. And listing language is where this usually starts: “this building does not take vouchers”, “working Section 8 only”, or a waitlist for voucher holders are all given as evidence of discrimination.
Exemptions. There are only two. A unit in a building of no more than two families where you or a family member live, that was not publicly advertised and does not receive public assistance. Or a room inside a unit where you or a family member live. The City can collect civil penalties of up to $250,000 per willful violation, and report licensed agents to New York State.
After approval
How much can you take as a security deposit in NYC?
No more than one month of rent, under New York General Obligations Law § 7-108.
The same section sets two inspection rights. Before move-in, you have to offer the tenant an inspection with you, and if they ask for it, you both sign a written record of the unit's condition. At the end of the tenancy, they can ask for an inspection no earlier than two weeks and no later than one week before they leave.
Within 14 days of the tenant vacating, you have to give them an itemized statement of anything you are keeping and return the rest. For voucher holders, insisting on a cash deposit rather than a security deposit voucher is one of the practices CCHR lists as discriminatory.
Source: N.Y. General Obligations Law § 7-108.
Putting it together
What order should tenant screening happen in?
The rules above only fit together one way: decide everything you are allowed to decide up front, commit the unit in writing, and only then look at criminal history, if you look at all.
Before you list
Write down your income, credit and reference standard and apply it identically to everyone. Check the listing says nothing about background checks, criminal records, or which vouchers you will accept.
Application
Charge no more than $20, or the actual cost of the checks if lower, and give the applicant copies and a receipt. Accept their own report if it is less than 30 days old. Do not ask about criminal history or pull housing court records.
General eligibility
Decide on income, credit and references. For voucher holders, apply the voucher rules below rather than the standard income test.
Conditional offer
Commit the unit in writing by giving the applicant the lease or rental agreement. If you are not running a criminal check, you can finalize here.
Criminal history, if you check it
Hand over CCHR's Fair Chance Housing notice first. Review only what the lookback periods allow, and hold the unit open while the process runs.
Decision
Sign the lease, or revoke only on the narrow grounds the law permits, in writing, with the reasoning set out.
Screening is also one of the six places a listing stalls. A standard that is written down and applied the same way to everyone is faster as well as safer. The other five are here.
Straight answers
Owner questions about screening, answered directly
Does the Fair Chance Housing Law apply to my small building?
Almost certainly, unless you live there and it has 2 or fewer rooms or units. Building size alone does not exempt you, and the law covers co-ops and condos as well as rentals.
Can I still check an applicant's credit and income?
Yes. Credit, income and references are the general eligibility the law expects you to assess before a conditional offer, within the $20 fee cap. The exceptions are the voucher rules above.
Does this change who pays the broker?
No, that is a separate law. Since June 2025 the FARE Act has decided who pays a broker on an NYC rental, and it comes with its own disclosure duties on the listing. The FARE Act, explained for owners.
Is this legal advice?
No. It is a plain-language summary of the statutes and CCHR's published guidance, current as of September 2026, with a link to each source. If a specific applicant or building raises a question it does not answer, it is worth a conversation with a lawyer.
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