How to Screen Tenants in NYC Legally

Why Tenant Screening Matters (Especially in NYC)

Good screening helps you:

• Protect your property
• Maintain steady rental income
• Reduce repair and turnover costs
• Keep building operations smooth

But you must do all this within NYC’s legal framework.

Step 1: Know the Laws Before You Start Screening

NYC has several major laws that shape what you can and cannot do when screening tenants:

1. NYC Human Rights Law

You cannot discriminate based on:

• Race, national origin, immigration status

• Gender, sexual orientation, marital status

• Age

• Religion

• Disability

• Lawful source of income (including vouchers, such asSection 8, CityFHEPS, HASA, etc.)

“No voucher” is 100% illegal.

2. Fair Chance for Housing Act (Effective 2025–2026)

This law limits your ability to perform criminal background checks. In most cases:

• You cannot deny someone based only on criminal history.

• You must provide written notice and follow strict steps if you plan to review it once the law is fully active.

3. Housing Stability and Tenant Protection Act (HSTPA)

Limits screening fees:

• Application fees capped at $20

• If you already have a recent background or credit check, you must accept it

4. FCRA (Federal Fair Credit Reporting Act)

If you use a credit report, you must:

• Tell the tenant you’re using a screening report

• Get written consent

• Provide an “adverse action notice” if they’re denied

Step 2: What You CAN Legally Check in NYC

Screening is still allowed, as long as it’s done fairly. Here’s what landlords can legally check:

1. Income & Employment Verification

This is both legal and expected.
Most NYC landlords use:

• Pay stubs

• W-2s

• 1099s

• Offer letters

• Bank statements

• Tax returns (less common)

Many landlords apply a guideline of 40x monthly rent, but you are NOT required to use this rule.

2. Credit Report

Checking credit is allowed as long as:

• The fee does not exceed $20

• You have written authorization

• You do not discriminate based on voucher income

Tip: If the tenant has a voucher that pays the full rent, credit score is less relevant.

3. Rental History

This includes:

• Previous landlord references

• Verifying timely rent payments

• Complaint history (if provided by tenant)

You may call prior landlords, but you cannot harass them or ask discriminatory questions.

4. Identity Verification

Valid forms include:

• State ID

• Passport

• NYC IDNYC

• Employment ID with documentation

Immigration status cannot be used to deny housing.

5. Ability to Pay Utilities (If Required)

If your rental requires the tenant to hold utilities in their name (e.g., ConEd), you may verify they can open an account.

Step 3: What You CANNOT Ask or Consider in NYC

Avoid these at all costs—they are illegal and can lead to major lawsuits.

1. You CANNOT ask about:

• Arrests without conviction

• Criminal history (depending on phase of implementation)

• Citizenship or immigration status

• Pregnancy or family planning

• Marital status

• National origin

• Religion

• Disabilities or medical conditions

• Age of the applicant (you may verify they are 18+)

• Source of income (no voucher discrimination)

2. You CANNOT do these actions:

• Require higher income from voucher holders

• Charge higher security deposits

• Ask intrusive questions about personal situations

• Reject an application simply because someone has children

• Ask for multiple months of rent upfront

NYC heavily enforces these rules, especially source-of-income discrimination.

Step 4: How to Set Legal Screening Criteria

Your screening criteria must be:
1. Written
2. Applied equally to every applicant
3. Focused on financial and rental factors only

A safe, NYC-legal screening list might include:

• Minimum credit score (if applicable)

• Income requirement (unless voucher covers rent)

• Employment verification

• No prior evictions (with proper documentation)

• Positive landlord references

Important: If you use a credit score minimum, it must also apply to non-voucher tenants.

Step 5: Best Practices for Staying Compliant

1. Use a Standardized Application

Apply the same form to every single applicant. No exceptions.

2. Keep Notes Based Only on Legal Criteria

Never write things like:
“She seems unreliable.”
“He has too many kids.”
“She talks with an accent.”

These can be used against you.

3. Document Every Step

If you deny someone, record the legal reason:

• Income too low

• Negative landlord reference

• Credit score below your stated requirement

4. Never Change Requirements for One Person

That can look like discrimination, even if it’s not.

5. Screen in the Same Order Applications Are Received

NYC encourages first-come, first-served to reduce bias.

Step 6: How to Legally Deny an Applicant in NYC

If you deny an applicant, you must:

1. Provide an Adverse Action Notice (for credit-based decisions).

2. Give them a copy of the report used.

3. State the specific, legal reason for denial.

Examples of safe reasons:

• Income does not meet requirement

• Insufficient employment documentation

• Unverifiable landlord references

• Poor credit repayment history

Illegal reasons include anything related to protected classes or vouchers.

Step 7: Avoiding the Most Common NYC Landlord Mistakes

Mistakes to avoid:

• Asking about criminal history too early

• Requiring 700+ credit scores from voucher holders

• Using different requirements for different tenants

• Asking about disability or health

• Denying someone for “gut feeling”

• Charging application fees above $20

• Rejecting tenants due to prior housing court cases alone

These mistakes have led to many NYC lawsuits—and large fines.

Final Thoughts: Safe, Smart, Legal Tenant Screening

Screening tenants in NYC doesn’t have to be stressful, but it must be done carefully and legally. By focusing on financial responsibility, rental history, and consistent criteria, you can protect your property while staying fully compliant with NYC housing laws.

If you ever feel unsure, consult a real estate attorney.

To connect with me directly, contact me at 917-254-2103.
For your FREE Home evaluation to learn the value of your home, your Homeowner Resource Guide, or your Landlord Intake, use this link:
https://bit.ly/45URvuV
or text HomeswithJustin to 85377.