Renting Out Your Property in New York: A Landlord's Guide

Before renting your property in New York, familiarize yourself with state and local landlord-tenant laws. Key laws include the New York State Real Property Law, the Housing Stability and Tenant Protection Act of 2019, and local ordinances that may apply to your specific location (NYC has additional regulations compared to upstate areas). Understanding these laws will help you avoid legal issues and ensure compliance throughout the rental process.

Verify if your property is subject to rent control or rent stabilization, particularly if located in NYC. This status significantly impacts how much rent you can charge, when you can evict tenants, and what services you must provide. Contact your local housing authority or use NYC's online tools to check your building's status. This determination will affect many aspects of your rental business and documentation requirements.

Check with your local municipality about required licenses or permits for rental properties. In NYC, you may need a Certificate of Occupancy, Multiple Dwelling Registration, and potentially a Hotel Occupancy Tax registration for short-term rentals. Outside NYC, requirements vary by locality. Failure to obtain proper licensing can result in fines and legal complications with tenants.

New York law requires all rental properties to be habitable and safe. This includes functioning heat and hot water, proper electrical systems, smoke and carbon monoxide detectors, window guards (in buildings with 3+ units), and absence of lead paint hazards in pre-1978 buildings. Schedule necessary inspections and make required improvements before listing your property.

Create a rental application that collects information to screen potential tenants while complying with fair housing laws. The application should request identification, employment information, income verification, rental history, and authorization for background and credit checks. Be aware that in NYC, application fees are capped at $20 and cannot exceed the actual cost of background/credit checks.

For buildings constructed before 1978, federal and New York law require landlords to disclose known information about lead-based paint hazards. You must provide tenants with an EPA-approved pamphlet about lead hazards and have them sign a disclosure form acknowledging receipt of this information. Failure to comply can result in significant penalties.

Develop a detailed checklist documenting the condition of the property before move-in and after move-out. This should include photographs and descriptions of all rooms, appliances, fixtures, and existing damage. This documentation is crucial for security deposit disputes and protects both landlord and tenant interests.

Create a comprehensive lease agreement that complies with New York law. The lease should include: names of all parties, property description, term of tenancy, rent amount and payment terms, security deposit details, maintenance responsibilities, utility arrangements, pet policies, and other terms. Under NY law, certain provisions (like waiving right to habitability) are prohibited. Consider having an attorney review your lease to ensure compliance.

In New York, landlords must provide a written receipt for security deposits and inform tenants of the bank where funds are held. For buildings with 6+ units, deposits must be placed in interest-bearing accounts. The receipt should detail the amount, date received, bank name and address, and interest rate. Security deposits in NY are limited to one month's rent for most properties.

Create a document outlining house rules that tenants must follow. This may include quiet hours, common area usage, garbage disposal procedures, smoking policies, and guest policies. Rules must be reasonable and cannot contradict terms in the lease or violate tenant rights under New York law. Provide this document to tenants before signing the lease.

Prepare a form to notify tenants when you need to enter the property. New York law requires landlords to provide reasonable notice (typically 24 hours) before entering a tenant's unit, except in emergencies. This form should include the date, time, and purpose of entry, and should be delivered to tenants in accordance with state requirements.

If your property is rent-stabilized, you must register it annually with the NYS Division of Housing and Community Renewal (DHCR). This registration includes information about the property, rent amounts, and services provided. Failure to register can result in penalties and limit your ability to collect rent increases.

Obtain appropriate landlord insurance coverage for your rental property. This typically includes property damage, liability coverage, and loss of rental income. In New York, certain coverages may be required by law or mortgage lenders. Consider requiring tenants to obtain renter's insurance as well.

Create a system for maintaining all rental-related records, including lease agreements, maintenance requests, communications with tenants, and payment records. New York law requires landlords to maintain certain records for specified periods. Good record-keeping is essential for tax purposes and in case of disputes or legal proceedings.

Familiarize yourself with federal, state, and local fair housing laws that prohibit discrimination based on protected characteristics. New York State and NYC have broader protections than federal law, including source of income protection (cannot refuse tenants with housing vouchers) and other categories. Violations can result in significant penalties and legal action.