Changes in New York State Rent Law: What You Need to Know 2019 (PDF)

Landlord Summary of the New York State Rent Law Changes (2019)

Based on the NY Attorney General's publication

1. Security Deposits & Fees

• Maximum security deposit = 1 month of rent for all residential rentals.
• Landlords cannot require both last month’s rent and a security deposit.
• Late fee cap: $50 or 5% of monthly rent (whichever is less).
• Credit/background check fee cap: $20 and must provide the report or invoice.
• Tenants may provide their own report (within 30 days) to avoid fees.

2. Application Rules & Tenant Screening

• No tenant blacklists: You cannot deny a tenant solely because they were involved in court with a previous landlord.
• If you use a screening service, rejection must be based on valid reasons, not past legal disputes.

3. Breaking Leases / Re-renting

• If a tenant leaves early, landlords must make a good-faith effort to re-rent.
• If a new tenant pays the same or higher rent, the old tenant is no longer liable.

4. Rent Receipts

• Must provide receipts for cash or money order payments.
• For check payments, you must give receipts if requested once; then every month automatically.

5. Non-Payment & Eviction Procedures

• Rent is considered late after 5 days.
• For non-payment cases:
• Must issue a 14-day written rent demand before filing.
• Tenant can stop eviction any time before the marshal executes by paying all rent owed.
• Tenants cannot be evicted for unpaid fees, only rent.
• Must send a certified mail notice each time rent is 5+ days late.

6. Security Deposit Return Rules

• Deposit must be returned within 14 days after move-out.
• Must provide itemized deductions; otherwise full deposit must be returned.
• Tenants can request a pre-move-out inspection and fix issues to avoid deductions.
• Violations may result in double damages owed to tenant.

7. Rent Increases & Lease Non-Renewals (NON-Stabilized units)

Advance written notice required for:

• 90 days: tenancy ≥ 2 years or a 2-year lease.
• 60 days: tenancy 1–2 years.
• 30 days: tenancy < 1 year.

Required when:

• Increasing rent 5% or more, OR
• Not renewing the lease.

Tenant may stay at current rent until proper notice period expires.

8. Major Capital Improvements (MCI) — Rent-Stabilized Buildings

• MCI increases capped at 2% of current rent per year.
• Applies to MCIs from 2012–2019 as well.
• No retroactive charges allowed.
• MCI increases removed after 30 years.
• No MCI increases if the building has hazardous violations.
• If fewer than 35% of units are stabilized, MCIs are not allowed.

9. Individual Apartment Improvements (IAI) — Rent-Stabilized

• Max monthly rent increase:
• $89.29 (≤35 units)
• $83.33 (>35 units)
• Work must be done by licensed contractors.
• No IAI increase allowed if hazardous violations exist.
• Limited to 3 IAIs every 15 years.
• IAI increases also expire after 30 years.

10. Preferential Rents

• Preferential rents must continue for the entire tenancy.
• Rent increases limited to RGB-approved percentages + MCI/IAI, not the higher “legal rent.”

11. Deregulation Changes

• High-rent and high-income deregulation ended (with rare exceptions in tax-abatement buildings).
• Previously deregulated units (before June 15, 2019) remain deregulated.
• Tenants may now challenge past deregulation using full rent history.

12. Manufactured Home Parks (if applicable)

• Rent increases capped at 3%, or 6% if justifiable.
• Rent-to-own contracts must include clear disclosures.
• Tenants may challenge >3% increases in court.
• Changing land use requires 2 years’ notice.
• Park owner must pay up to $15,000 moving stipend if land use changes.

Landlord Key Takeaways

• Security deposit limit is strict and heavily enforced.
• Proper notices (late rent, rent increases, non-renewal) must be documented.
• Eviction rules favor tenants, especially in non-payment cases.
• Rent-stabilized increases are tightly limited.
• Itemized security deposit deductions and 14-day return rule are critical.
• Preferential rents cannot be removed.

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