A 2019 state law caps rental application fees at $20 and requires landlords to waive the charge entirely if the applicant provides a credit report pulled within the past 30 days. Most NYC renters don't know it.

The $20 screening fee is a near-universal feature of apartment hunting in New York City. It's also waivable under a state law that has been on the books since 2019.

New York Real Property Law § 238-a, enacted as part of the Housing Stability and Tenant Protection Act, bars landlords, lessors, sub-lessors, and grantors from charging any application or processing fee for a residential unit — with a narrow exception for background and credit checks. That exception is itself capped: the combined fee for both checks cannot exceed the actual cost or $20, whichever is lower.

The sharper provision: the landlord must waive the fee entirely if the prospective tenant hands over a copy of a background check or credit report completed within the past 30 days. The statute covers all residential dwelling units — not only rent-stabilized apartments.

Consumers are entitled to free credit reports under federal law, available through annualcreditreport.com, the site authorized by the Consumer Financial Protection Bureau where Equifax, Experian, and TransUnion all participate. A report pulled there and presented at application satisfies the 30-day window in § 238-a.

The law is enforced alongside broader rent-regulation statutes. New York State Homes and Community Renewal's Tenant Protection Unit, which handles landlord-compliance enforcement, included non-rent fees among the issues raised at a March 28, 2026, Rental Rip-Off hearing in East Harlem. Complaints about fee violations can also be directed to the state Attorney General's tenant harassment unit.

In a city where applicants routinely submit to multiple apartments in a single weekend, the cumulative cost of screening fees adds up. The waiver provision exists; the burden is on the renter to know it and use it.