Rental Application Fees: Understanding Costs and Your Rights as a New York Tenant

When filling out a tenant application in New York, you’ve probably noticed that you’re required to pay several different sets of fees. But what are they all? How do they pertain to renting an apartment, and why do you need to pay them in the first place?

If you’ve been bamboozled by rental application fees in New York and you’re looking for a little bit of clarity, then we’ve got you covered! Take a look below to find out what rental application fees are, the different types of fees you might see, and how you can save on them in New York.

What Are Rental Application Fees?

A rental application fee is the amount charged by a landlord or building manager when a person applies to live in their unit. It is designed to cover the costs of application processing, including things like background and credit checks, as well as time spent on admin. Fortunately, rental laws in New York limit the application fee to just $20.

In addition to this fee, New Yorkers may find themselves paying other fees, which we’ve taken a look at below.

Types of Rental Fees That Are Common in New York

So, you’re apartment hunting in New York, and you’ve realized that not only do you need to budget for a new rental price, but you’re also going to need to pay a ton of other fees just to apply and secure the deal. Well, if you’re confused by what all the different fees you come across mean, we’ve gone into detail about a few of them to help you out.

  • Broker fee - A broker’s fee is usually about 12–15% of the annual rent price and is the amount paid to the broker of the deal. It is a one-time fee, and you may be able to leverage a better deal in slower rental months.

  • Pet fee - Technically, you’re not allowed to be asked to pay a higher security deposit, even if you’re moving into a pet-friendly place, so landlords will roll the pet fee into the rent instead. Usually, it is only around $50 per month, but some landlords may add larger amounts.

  • Guarantor fee - Some potential renters may find they’re asked for a guarantor to be able to sign a lease agreement. If you use an institutional guarantor, you may end up paying upwards of 65% of a month’s rent for the service. Fortunately, you can have a family member or friend be a guarantor too.

  • Rental insurance fees - Some buildings make it mandatory for renters to take out rental insurance, usually a little over $125 per year.

  • Amenity fees - If you move into newer or luxury buildings, you may end up paying a yearly fee for amenities like a building gym. Sometimes these are offered on an opt-in basis, so be sure to check before paying for something you don’t want.

  • Move-in fees - New laws make this a difficult fee for landlords to ask for, but if you’re moving into a co-op or condo, then you may be asked to pay a fee for moving in!

  • Late rent - Once you begin paying rent, be sure to pay it on time, otherwise you may be subject to late rent fees! These can be anywhere from $50 to 5% of your monthly rent price.

How to Save on Rental Application Fees

As landlords in New York are not legally allowed to charge more than $20 for rental application fees, it’s not too steep an amount to fork out when looking for a new place. However, if you’re looking to avoid paying the fees, you might consider providing your own copies of background checks and a credit check that has been conducted within the last 30 days.

Most of the money charged in rental application fees comes from getting these checks done. So, if you can, getting your own means that a landlord has to waive the fee for you. This might be a good idea if you apply to a few different apartments in a short time.

"Understanding the fine print of rental application fees can save tenants unnecessary costs, and applying negotiation training principles can help navigate conversations with landlords about waiving fees when you provide your own documentation." - The founder of Shapiro Negotiations Institute shares

Tenant Rights in New York

Tenant rights differ from state to state, so it is always best to be well-versed in your rights in the city or town you’re currently living in. In New York, tenant rights can differ depending on the different kinds of apartments available, but there are a few general regulations that landlords and tenants must follow. 

For landlords, these include:

  • Landlords are prohibited from allowing anything that could endanger the life, health, or safety of a tenant’s life.

  • The dwelling that a landlord offers must be clean before a tenant moves in.

  • All common halls and areas have to be lit adequately.

  • In winter, heat has to be kept on and may only be turned off if repairs or emergency work is being carried out.

  • All plumbing, radiators, wiring, hot water heaters, and furnaces must be maintained and kept in good working order.

  • The apartment and the surrounding areas must be kept free from any trash, rodents, or insects.

  • Proper waterproofing NYC must be ensured to prevent water damage, leaks, or mold, protecting the property and the tenants from potential hazards.  

For the tenant, this includes:

  • Tenants must pay rent on time or be subjected to late fees.

  • They must keep the apartment and any garden/yard clean.

  • The landlord should be kept informed of any issues, problems, or damage to facilities.

  • Any damages that occur besides the normal wear and tear expected must be repaired.

Final Thoughts

Moving to New York can be an exciting journey, but if this is your first time renting in the big city then you may be blindsided by the many fees you are expected to pay. Fortunately, rental application fees are usually the cheapest, and you can get out of paying for them with some forward-thinking on your part.

Remember to budget for a few different sets of fees, depending on the kind of building you’re moving into, and take care to ensure you’re paying for only what you want and need. If you find yourself needing legal assistance during the rental process, consider reaching out to RequestLegalHelp for expert guidance.