How to Screen a Tenant in NY — Legal-Compliant 6-Step Process

For Landlords avoiding NY tenant-screening violations. By Nitin Gadura, NYS Salesperson #10401383405. Last reviewed 2026-05-07.

NY tenant screening has the strictest legal requirements in the country. Source-of-income protection, $20 application fee cap, written-denial-reason rule, and the 2024 NYC broker-fee disclosure all create traps for unwary landlords. Here's the 6-step compliant process.

The 6-Step Process

1

Set written screening criteria BEFORE listing

Required: minimum credit, income multiple, prior eviction status, criminal background limits. Apply identically to every applicant.

Estimated time: PT2H

2

Cap application fee at $20

NY State law caps fees at $20 per applicant. No 'processing,' 'admin,' or 'background-check' fees beyond this. Fees above $20 = lawsuit-bait.

Estimated time: PT0M

3

Pull credit + verify income

650+ typical for market-rate. Income: 40x monthly rent (single tenant) or 36x combined (multiple tenants). Verify last 30 days of income.

Estimated time: PT24H · ~$35

4

Verify employment + landlord references

Call current employer (verify position + tenure). Call 2 prior landlords (verify on-time payments + condition of unit at move-out).

Estimated time: PT2H

5

Apply criteria equally — no protected-class discrimination

Federal + NY State + NYC anti-discrimination: race, color, national origin, religion, sex, familial status, disability, source of income, sexual orientation, gender identity, age, marital status, military status. Same criteria for everyone.

Estimated time: ongoing

6

Provide written denial reason within 30 days if rejecting

NY law requires written reason. 'Insufficient income' is acceptable; 'too many kids in the household' is illegal (familial status protection).

Estimated time: PT30M

Frequently Asked Questions

What's the $20 application fee cap in NY?

NY State law caps tenant application fees at $20 per applicant. This includes credit-check costs. Landlords must absorb screening costs above $20. Fees above the cap can trigger fines up to $1,000 per violation.

Can I refuse a tenant with bad credit?

Yes — IF you apply the same credit standard to every applicant AND provide written denial reason. You cannot use 'bad credit' selectively against protected classes.

Do I have to accept Section 8 vouchers in NY?

Yes. Source-of-income protection is statewide. Section 8, CityFHEPS, SSDI, child support, alimony, veteran benefits all protected. Refusing a voucher tenant if other criteria are met is illegal.

How fast can I run NY tenant screening?

Standard: 1–3 business days (credit pull + employment verification). Rush: same-day with services like SmartMove ($40 fee).

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