How Much Can a NYC Landlord Charge for an Application Fee?

January 10, 2026

Picture this: You're eyeing that perfect NYC apartment, only to face a hefty application fee that feels like highway robbery. How much can landlords legally charge?

Tip: Want to sanity-check a specific address? Search it on Building Health X to see recent heat/hot water, pests, noise, safety and violations across 30/90 days, 1 year and 3 years.

In the Big Apple, fees are capped-but with twists like inflation bumps and extras for credit checks. We'll break down the $20 limit, who's allowed to charge, refunds, and penalties for overreaching. Ready to protect your wallet?

NYC Legal Maximum for Application Fees

New York City's Housing Stability and Tenant Protection Act of 2019 caps application fees at $20, protecting renters from excessive charges in a competitive market. This law originated to address high tenant screening fees that burdened applicants in apartment rental NYC. Before the law, average fees often exceeded $100 according to RGB data.

The NYC HPD enforces these rules under Local Law 97, ensuring landlord tenant law compliance. Landlords must limit charges to actual costs or $20, whichever is less. This cap applies to all units, from [rent stabilized](/blog/how-do-i-know-if-my-nyc-apartment-is-rent-stabilized) apartments to market rate rentals.

Tenants benefit from fee transparency, with requirements for written receipts and clear disclosure. Violations lead to overcharge complaints filed with HPD or small claims court. The fixed cap remains effective despite rising New York City rent, promoting fair application process.

Landlords use standardized applications like the REBNY form for credit check, background check, and rental history verification. Renters should verify maximum application fee before submitting documents like pay stubs or bank statements.

$20 Standard Limit

Since June 2019, NYC landlords cannot charge more than $20 per applicant under the Housing Stability Act, no exceptions for luxury buildings or market-rate units. The law states no fee beyond $20 or actual screening cost, whichever is lower. This covers employment verification, income verification, and criminal background check.

For multiple applicants, calculate simply: $20 x 2 applicants = $40 max for a couple applying to a one bedroom in Brooklyn. Guarantors or co-signers each face the same $20 cap. Landlords often use the REBNY standardized form for consistent tenant application processing.

NYC HPD guidelines require fees to be non-refundable only if processing occurs, with receipts provided. Tenants report illegal fees via HPD complaints for excessive processing fees. This protects against discrimination fees under fair housing laws.

Practical tip for renters: Ask for a fee breakdown upfront in StreetEasy listings or Zillow rentals. Landlords risk penalties for violations, including treble damages in disputes.

Inflation Adjustments

The $20 cap is NOT automatically inflation-adjusted; it remains fixed despite NYC rents rising since 2019 per ZORI index data. CPI in NYC has increased notably from 2019 to 2024, eroding the fee's real value. Experts recommend monitoring legislative changes for updates.

NYS Attorney General guidance confirms no current adjustment, with HPD stating no adjustment scheduled. Proposed 2024 bills suggest raising to $25, but nothing is enacted yet. Landlords cannot add administrative fees to offset this.

Year	CPI NYC	Real $20 Value (2019 dollars)
2019	Base	$20
2020	+1.5%	$19.70
2021	+5.2%	$18.72
2022	+8.1%	$17.28
2023	+4.5%	$16.53
2024	+3.2%	$16.00

This table illustrates the economic factors impacting fee limits. Renters in high-demand areas like Williamsburg or Midtown still pay only $20. Future NYC rent laws may address this for better tenant protection.

Who Can Charge the Fee

Only specific entities can legally collect application fees under NYC law, with brokers facing stricter broker fee regulations. The NYC Housing Preservation Department (HPD) defines who qualifies as a fee charger. These rules distinguish application fees from broker commissions, capped at one month's rent.

Landlords use application fees for tenant screening, including credit checks and rental history reviews. REBNY provides guidelines for standardized collection via their form. This ensures fee transparency in the apartment rental NYC process.

Tenants should request a written receipt for any fee paid. HPD guidelines limit the maximum to $20 per applicant. Misunderstandings often arise in rent stabilized apartments or market rate rentals.

Experts recommend reviewing listings on StreetEasy for $20 application fee mentions. This clarifies if it's separate from other costs like security deposits. Proper disclosure protects against illegal fees.

Landlords and Brokers

Individual landlords and licensed real estate brokers can charge the $20 fee, but brokers must disclose if it's separate from their commission. NYC rent laws cap the application fee at $20 for processing tenant applications. This covers background checks, employment verification, and income proof.

Landlords provide a written receipt upon collection. Brokers follow REBNY standards and broker licensing law 442-h for disclosures. Tenants in doorman buildings or walk-up rentals encounter this equally.

Entity	Fee Limit	Disclosure Required	Example
Landlords	$20	Written receipt	Blueground
Brokers	$20 + 8-15% commission	REBNY form	Corcoran

StreetEasy listings often note "$20 app fee, no broker fee" for no fee apartments. Brokers cannot bundle this into broker commissions. Tenants should verify licensing to avoid excessive fees.

Co-op and Condo Boards

Co-op and condo boards can charge $20 for board package review but often add $500-1,000 application processing fees in a legal gray area. NYS AG 2022 advisory notes boards face no explicit cap. This applies to sublets or new purchases in Upper East Side co-ops.

StreetEasy examples show "$900 board fee" alongside standard rent applications. Tenants submit guarantor applications separately. Boards review eviction history and financials beyond landlord screening.

Co-op board package for Housing Court precedent cases.
Condo sublet applications capped around customary amounts.
Guarantor fees limited to $20 maximum per applicant.

Renters in luxury rentals or affordable housing NYC should budget for these. Request itemized breakdowns to ensure fee transparency. Legal aid NYC can assist with overcharge complaints if fees seem unreasonable.

Allowable Additional Charges

Beyond the $20 cap, landlords can charge for actual third-party screening costs if properly documented. The NYC Housing Preservation Department (HPD) defines actual cost as the exact amount paid to vendors, requiring itemized receipts for transparency. Common vendors include TransUnion SmartMove at $40 and ClearNow at $35.

Landlords must provide written receipts showing the precise fee passed to tenants. HPD guidelines emphasize that charges cannot exceed what the landlord pays, preventing excessive fees. Tenants should request these documents during the application process to verify compliance with NYC rent laws.

Under the Housing Stability Act, these additional costs apply to both rent-stabilized apartments and market rate rentals. Failure to document properly risks overcharge complaints to HPD or small claims court. Always review listings on platforms like StreetEasy for fee transparency.

For guarantor applications or co-signers, the same rules apply per applicant. Landlords cannot bundle fees or add administrative markups. This ensures fair housing practices and protects renters moving to NYC.

Credit/Background Check Fees

Landlords can pass through exact third-party costs: TransUnion SmartMove ($39.95), MySmartMove ($34.99), or RentPrep ($29.95). These cover credit checks, eviction history, and criminal background checks as required by FCRA compliance. Tenants must give written authorization before any screening.

Service	Price	What's Included	Turnaround
TransUnion SmartMove	$39.95	Credit + eviction + criminal	24hrs
RentPrep	$29.95	Criminal + income	12hrs
Experian RentBureau	$14.95	Credit only	Instant

Compare vendor options to understand tenant screening fees in your budget. Landlords must share receipts and cannot charge more than their cost. This applies to online applications via Zillow or StreetEasy listings.

For market rate rentals in Brooklyn or Manhattan, request the REBNY form for standardized screening criteria. Denials based on these checks must follow fair housing laws, avoiding discrimination. Keep records for potential appeals or legal aid NYC support.

Documentation Fees

Separate $10-25 processing fees for paystub and bank statement verification are increasingly common but legally questionable. HPD FAQ states landlords cannot charge for their own time on employment calls or rental history reviews. Stick to actual third-party costs like The Work Number at $14.95 for paystub checks.

Paystub verification: Limited to vendor fees such as The Work Number ($14.95).
Bank statements: No charge, as verification is free.
Employment calls: Landlord time only, no fee allowed.

A Brooklyn listing charging $20 app + $15 doc fee = illegal $35 total violates the fee cap. Tenants should flag such illegal fees and report to HPD. Demand itemized breakdowns for income verification or proof of funds.

For self-employed applicants or students, similar rules apply without extra markups. Use the standardized application to track fees. If overcharged, file complaints to enforce tenant rights under NYC landlord-tenant law.

Refund Policies and Requirements

Application fees are generally non-refundable, but specific rejection scenarios trigger refunds under NYC law. The 'use it or lose it' principle applies to these fees, meaning landlords keep them after processing the tenant screening fee, unlike holding deposits which may return if no unit is available. Landlords must provide a written receipt within 14 days detailing the application fee use.

This setup follows NYC Housing Preservation Department (HPD) guidelines and the Housing Stability Act. For rent-stabilized apartments or market rate rentals, the fee covers credit checks, background checks, employment verification, and rental history reviews. Tenants should review the receipt for fee transparency to avoid disputes over illegal fees or excessive fees.

Holding deposits differ as they secure a unit temporarily, but application fees fund the processing fee regardless of approval. Experts recommend landlords disclose refund rules upfront in the lease application. Common issues arise when tenants confuse the two, leading to overcharge complaints.

For apartment rentals in NYC, like a Brooklyn one-bedroom or Manhattan studio, clear policies prevent small claims court visits. Tenants moving to NYC should ask about fee disclosure before paying the maximum application fee.

Non-Refundable Conditions

Fees are non-refundable if you withdraw after screening or fail to respond within 72 hours of approval. This aligns with HPD guideline #3, stating the fee covers processing regardless of tenancy. Landlords process credit checks, income verification, and eviction history under NYC rent laws.

Here are four key non-refundable scenarios with timelines:

Applicant withdraws post-screening: Fee stays with landlord after review completes.
No response within 72 hours of approval: Unit moves to next applicant.
Falsified documents: Such as fake pay stubs or rental history, voids any refund claim.
Multiple unit applications: Fee per rent application remains non-refundable for each.

For landlords, use this simple email template for clarity: "Your application for [unit address] was approved on [date]. Please respond within 72 hours or the fee becomes non-refundable per REBNY form guidelines. Contact us to proceed." This reduces tenant rights disputes.

In practice, for a Williamsburg lease or Queens studio, tenants often overlook the 72-hour window during the application process. Landlords should note screening criteria like the 40x rent rule in notices to maintain compliance.

Partial Refunds

If landlord withdraws the unit or rejects due to protected class status, full refund required within 14 days. This protects under Fair Housing Act and NYC Human Rights Law against discrimination fees. Tenants can file HPD complaints for violations.

Review this refund timeline table for clarity:

Scenario	Refund %	Deadline	Landlord Action
Unit leased to other	100%	14 days	Written notice + check
FHA discrimination	100% + treble damages	Court order	HPD complaint

Landlords must issue refunds via check with written notice for transparency. For Zillow rentals or StreetEasy listings, use this rejection template: "Due to unit availability changes, we are refunding your application fee. Check enclosed. Apologies for inconvenience." This avoids penalties for violation.

Tenants rejected unfairly, perhaps in a doorman building or luxury rental, should document denial reasons. Legal aid NYC helps with appeals under good cause eviction rules. Landlords risk lawsuits for mishandled fees or FHA non-compliance.

Penalties for Overcharging

Charging over $20 triggers fines up to $1,000 per violation plus treble damages in tenant lawsuits. NYC landlords face strict enforcement under the Housing Stability Act for exceeding the maximum application fee. Tenants have multiple paths to seek redress against illegal fees.

The NYC Housing Preservation Department (HPD) imposes fines for violations. Small claims court allows tenants to recover up to $10,000 with treble damages. The New York State Attorney General handles larger cases, including class actions.

In 2023, HPD addressed 237 cases and recovered over $150,000 for tenants. These efforts highlight the risks of excessive fees in the apartment rental NYC market. Landlords should review HPD guidelines to avoid penalties.

Common issues include charging for credit check fees or processing fees beyond the cap. Tenants report overcharges via simple processes. This enforcement protects renters in rent stabilized apartments and market rate rentals alike.

Fines and Legal Consequences

HPD fines range from $250 to $1,000 per violation, small claims court awards up to $10,000 with treble damages, and the NYS AG pursues class actions. These penalties deter NYC landlords from ignoring the $20 application fee cap. Violations often stem from adding fees for background checks or rental history reviews.

Tenants can file complaints easily. Use the HPD online portal at hpd.nyc.gov for quick submission. Small claims court in NYC handles cases up to $10,000 without a lawyer.

Violation	Agency	Penalty	Example
$50 fee charged	HPD	$500 fine	2023 Bushwick case
$100 fee x10 tenants	NYS AG	$30K + costs	2022 REBNY member

In the case of Smith v. 456 Corp (2022), the court awarded $4,500 in treble damages. This shows how tenants recover non-refundable fees charged illegally. Landlords risk similar outcomes for tenant screening fees over the limit.

To file, gather proof like lease applications and receipts. Experts recommend documenting fee disclosure issues. This approach strengthens overcharge complaints under landlord tenant law.

Frequently Asked Questions

How Much Can a NYC Landlord Charge for an Application Fee?

In New York City, landlords are legally allowed to charge a maximum application fee of $20 per applicant. This cap was established under Local Law 152 of 2024, which limits non-refundable application fees to $20 or the actual cost of a credit or background check, whichever is less. All keywords: How Much Can a NYC Landlord Charge for an Application Fee?

Is the $20 NYC Application Fee Limit Refundable?

No, the application fee in NYC, capped at $20, is non-refundable. However, landlords must provide applicants with copies of any credit, background, or tenant screening reports obtained using the fee. This ensures transparency under the new regulations addressing 'How Much Can a NYC Landlord Charge for an Application Fee?'

Can NYC Landlords Charge More Than $20 for an Application Fee If They Use a Third-Party Service?

No, even with third-party screening services, NYC landlords cannot exceed $20 for an application fee unless the actual cost of the background or credit check is lower, in which case they must charge that lesser amount. This directly ties into rules on 'How Much Can a NYC Landlord Charge for an Application Fee?'

What Happens If a NYC Landlord Charges More Than the Allowed Application Fee?

If a NYC landlord charges more than $20 for an application fee, they may face penalties, including fines up to $1,000 per violation enforced by the NYC Department of Housing Preservation and Development (HPD). Tenants can report violations when understanding 'How Much Can a NYC Landlord Charge for an Application Fee?'

Does the NYC Application Fee Cap Apply to All Rental Properties?

Yes, the $20 cap on application fees applies to all residential rental properties in NYC, including apartments, condos, and co-ops, but excludes certain exempt properties like owner-occupied buildings with fewer than three units. Key query: 'How Much Can a NYC Landlord Charge for an Application Fee?'

Are There Any Exceptions to How Much a NYC Landlord Can Charge for an Application Fee?

Exceptions are limited; for instance, if a landlord provides a full credit report at no extra cost or uses a free screening service, no fee can be charged. Otherwise, the strict $20 maximum holds, central to 'How Much Can a NYC Landlord Charge for an Application Fee?'