Are you using a New York rental application to its fullest potential? Whether you’re listing in The Big Apple or Upstate, here’s a helpful guide for landlords covering all aspects of the application process.
Let’s review tenant screening, application laws, and best-in-class online tools like a free rental application template and TurboTenant’s property management software.
Information to Collect
A rental application form tells you a lot about a renter — down to the sensitive details. Because applications discuss private information, laws regulate:
- The information landlords can collect
- The types of questions landlords can ask
- How landlords use applications when selecting a tenant
Before we take a closer look at these laws, here’s a complete overview of what your New York rental application should ask for:
- Applicant, co-applicant, and co-signer names
- Phone number and email address
- Social Security number
- Date of birth
- Rental history
- Employment and income
- References
- Emergency contact
- Pets/service animals
- Smoking status
- Vehicles
Quick Guide to Screening a Tenant
Here’s a step-by-step guide to responsible, in-depth tenant screening in The Empire State.
1. Pre-Screen
Start the process with a pre-screener to save time and sort through leads in advance. A pre-screener isn’t a replacement for your New York rental application form, but it does help identify qualified renters. Once a renter is on your online listing, the pre-screener will sample their:
- Name, phone number, and email address
- Move-in date
- Employment, income, and credit details
- Number of occupants (including pets and service animals)
- Vehicles
- Smoking status
2. Conduct Showings
When you’re ready to show the rental, prepare to meet potential tenants in person by:
- Deep cleaning so the space looks its best
- Creating a neighborhood guide or city map to spotlight local attractions
- Preparing a sign-up sheet so you can send out your online rental application
3. Distribute and Collect Applications
After you’ve shared your applications and have the filled-out forms in hand, make sure that all renters have signed the consent and acknowledgment. If they don’t, federal law prohibits you from pulling their credit report.
New York Application Laws
Landlord-tenant rights and rental application laws vary from state to state. Here’s what New York landlords need to know:
Human Rights Law: Landlords can’t discriminate against renters based on protected renter characteristics, including:
- Immigration status
- Sexual orientation
- Gender identity or expression
- Military status
- Status as a victim of domestic violence (Human Rights Law)
Real Property Law: New York law caps rental application fees at $20. Landlords must provide renters with a copy of the credit/background check when requested. If applicants provide landlords with screening reports (including portable tenant screening reports) they obtained in the last 30 days, landlords must accept them and waive the application fee (Real Property Law).
Criminal & eviction history: New York landlords can reference criminal background check results and eviction records.
Pets, ESAs, and Service Animals
If animals feel like an afterthought, think again. Asking about pets, service animals, and Emotional Support Animals (ESAs) in your New York rental application is a must.
Use rental applications to collect information about pets. Inquire about household animals and request specific details, including breed, name, size, and proof of vaccination status.
Even if you don’t intend to allow pets, you still have to comply with the Fair Housing law. Here’s what you need to know:
The Fair Housing Act prohibits landlords from:
- Discriminating against renters because of their service animal or ESA
- Charging any kind of pet fee (including a pet rent or pet deposit) for service animals or ESAs
- Rejecting applications based on a service animal’s or ESA’s weight, size, or breed
While you can’t discriminate against renters with service animals or ESAs, you can hold tenants financially responsible for damages caused by their animals.
Federal Application Laws
Here’s a rapid-fire rundown of four federal rental application laws all New York landlords must follow:
The Equal Credit Opportunity Act (ECOA): You can’t discriminate against renters because they receive public assistance. The ECOA regulates how landlords assess rental applications and provides reporting guidelines for applicants (Equal Credit Opportunity Act).
The Fair Credit Reporting Act (FCRA): Mandates that landlords must have an applicant’s written consent before running a credit check. If you deny applicants due to credit reports, you must send them an adverse action notice (Fair Credit Reporting Act).
The Fair Housing Act (FHA): The FHA protects these renter traits:
- Race
- Color
- National origin
- Religion
- Sex
- Familial status
- Disability
Landlords can’t:
- Discriminate against applicants or ask questions based on FHA-protected characteristics
- Offer unequal renting terms
- Use discriminatory advertising (Fair Housing Act)
The Americans with Disabilities Act (ADA): Landlords must accommodate renters with disabilities and cannot discriminate against or deny them solely based on their condition (Americans with Disabilities Act).
4. Use a Third-Party Screening Service
Consider using a tenant screening service like TurboTenant to conduct comprehensive credit, eviction, and tenant background checks.
5. Check Application References
When it’s time to speak with an applicant’s past landlords or employer references, ask the following questions:
- Would you rent to them again?
- Did they break your lease?
- What was their monthly rent rate?
- Were they ever late with their rent payments?
- Any missed payments?
6. Approve or Deny Applications
Operate on a first-come, first-served basis by accepting multiple applications based on:
- Rental history: Young renters may not have even a year of solid rental history. In these cases, always ask for a co-signer.
- Rent-to-income ratio: Calculate the rent-to-income ratio to ensure the monthly rent amount is less than 30% of the renter’s gross income.
- Credit score: Set a minimum acceptance score between 600 and 670.
Don’t forget to fact-check every New York rental application you review. Landlords have the right to reject applicants who submit false information.
Denial Process
Landlords must handle denials consistently across applicants. Failing to do so puts you at risk for discrimination claims.
Reasons for denial: New York landlords can reject applicants based on:
- Lack of income
- Adverse rental history
- Poor credit
- Criminal background
- False information
Denial notice: If you don’t base a denial on a credit or background check, you don’t have to send tenant rejection letters.
Credit/background denials: When you deny applicants based on a credit or background check, you must inform them in compliance with FCRA rules. You must include the reporting agency’s name and contact details, along with the renter’s right to dispute mistakes.
Document storage: Retain rental applications and screening reports for a minimum of three years. These records help you defend against discrimination claims.
Avoiding Fraud
Follow these steps to spot application fraud and find the honest, responsible tenants you’re looking for:
- Run credit, background, and eviction checks
- Confirm the renter’s employment and income
- Verify the applicant’s identity
- Fact-check all submitted documents
