A New York lease agreement is not just a piece of paperwork; it’s your legal shield in one of the most tenant-friendly states in the US. Whether you are leasing your brownstone in Brooklyn or a spacious bungalow upstate, the right lease agreement will help keep you compliant and on the same page with your tenant, providing you with a sense of security and protection.
Disclosures (7)
New York requires certain disclosures. These disclosures give tenants the information they need and help protect both you and your investment.
- Lead paint: If your property was constructed before 1978, federal law requires landlords to disclose any known information on lead-based paint and its hazards..
- Security deposit receipt: New York landlords are required to provide tenants a receipt for their security deposit, including the deposit amount and the name and address of the bank holding the security deposit (NY GOB Code § 7-103(2)).
- Sprinklers: You must disclose to the tenants whether a sprinkler system exists in the unit, as well as its date of last maintenance/inspection (NY RPP § 231-A).
- Reasonable modifications and accommodations: In the case of a disability, landlords must disclose tenants’ right to request reasonable modifications and/or accommodations within 30 days (NY EXC Code § 170-d).
- Rent stabilization: Landlords are required to disclose whether the unit is rent-stabilized (New York City Administrative Code § 26-512).
- Bed bugs: Landlords are required to inform tenants about the bed bug history of the unit and the building for the last calendar year (New York City Administrative Code § 27-2018.1).
- Certificate of occupancy: If the building has fewer than three units, the landlord must provide clear notice of the building’s certificate of occupancy (NY RPP Code § 235-bb).
Optional Disclosures and Addenda
Although the law doesn’t require it, landlords should include the following optional disclosures with a New York lease agreement.
Asbestos: Notifies tenants if there is any asbestos on the property, as well as precautions to take to minimize risk.
Landlord’s name and address: Allows for easy communication in case of any unusual circumstances.
Late/returned check fees: Outlines the fees for late or returned checks, if the landlord chooses to charge them. New York limits late fees to $50 or 5 percent of the monthly rent, whichever is less. Returned check fees are limited to $20 per returned check.
Medical marijuana use: Provides guidelines for the use of medical marijuana on the property. Some laws allow further restrictions on the use of medical marijuana, such as limiting use to designated smoking areas.
Mold: Informs tenants of any known or suspected mold issues in the unit, as well as information on treatment.
Move-in checklist: A detailed checklist that outlines the current condition of the unit at move-in. Landlords will also use this checklist at move-out for comparison to justify any necessary deductions.
Non-refundable fees: If you will be charging any non-refundable fees, you should specify this in the lease. Otherwise, the tenant may be entitled to a refund at lease termination.
Smoking: Outlines the smoking policy in the unit, such as designated smoking areas that won’t interfere with other tenants.
Consequences of Not Including Mandatory Disclosures
Failure to comply with mandatory disclosures could result in financial penalties, denial of eviction, or other legal penalties. Disclosures are necessary to outline important information and to help protect both the tenant and landlord.
Security Deposit Regulations in New York
New York has some of the nation’s strictest laws regarding security deposits. Here’s what you need to know to make sure your New York lease agreement is compliant.
Maximum amount: Landlords may charge a maximum security deposit that is equal to 1 month’s rent (NY GOB Code § 7-108(1a)).
Deposit receipt: A receipt must be given to all tenants for their security deposit, including the amount paid and where the landlord is holding the deposit funds (NY GOB Code § 7-103(2)).
Interest payments: Additionally, the landlord must hold the deposit in an interest-bearing account and the landlord must pay the tenant the full annual interest, less 1 percent (NY GOL Code § 7-103(2-a)).
Security deposit return: Security deposits, minus any deductions, must be returned to the tenant within 14 days of vacating the property (NY GOB Code § 7-108(1e)).
Deductions: If the landlord makes any deductions, they must provide the tenant with an itemized list of said deductions within 14 days of lease termination (NY GOL Code § 7-108(1b)).
Rent Payment Regulations
From limits on late fees to rules surrounding rent payment, New York designed their rent payment regulations to protect tenants while keeping expectations clear and aligned.
Rent control/stabilization: New York has strict laws regarding rent control and stabilization, which govern how much a landlord can increase the rent from one year to the next. These vary from city to city, so always consult your local laws (Housing Stability & Tenant Protection Act of 2019).
Late rent fees: In New York, late fees are capped at $50 or 5 percent of the monthly rent, whichever is less (NY RPP Code § 238-A(2)).
Grace period: Landlords must provide their tenants a 5-day grace period for rent payments (NY RPP Code § 238-A(2)).
Tenant’s right to withhold rent: If the landlord fails to provide a utility or maintenance service for which they are responsible, New York tenants have the right to pay the cost themselves and deduct the amount from future rent (NY RPP Code § 235-A(1)).
Violations
Lease violations can happen to anyone, but New York tightly regulates their processes for handling such violations. Following the correct steps can help protect you as a landlord.
Lease violation: If a tenant violates a lease in New York, the landlord must first provide a Notice to Cure that gives the tenant 10 days to fix the issue. If the tenant doesn’t comply, the landlord may terminate the lease, and the tenant then has 30 days to move out (NY RO Acts §§ 711, 753(4)).
Missed rent payment: If a tenant misses a rent payment, the landlord may issue a 14-day notice to pay rent or quit, following the required 5-day grace period (NY RP Acts § 711(2)).
Lease abandonment: If a tenant abandons their lease early, they may still be financially responsible for the rent for the remainder of the lease period.
Self-help evictions: In New York, self-help evictions are illegal, and landlords should never attempt to remove tenants on their own. All evictions must go through the proper legal channels (NY RPP Code §§ 235 and 853).
Terminating a Lease
Ending a New York lease agreement isn’t always simple, especially with so many tenant protections in place. Knowing your options can help avoid any legal mishaps down the road.
Standard lease: A tenant may end a standard lease early and without penalty if they meet certain conditions, such as active military duty, domestic violence, or landlord harassment.
Month-to-month: To terminate a month-to-month lease, landlords must give at least 30 days’ notice if the tenant has lived in the unit for less than 1 year, 60 days’ notice for 1 to 2 years, or 90 days’ notice for longer than 2 years (NY RPP Code § 232-B).
Property abandonment: In New York, landlords must make a good-faith effort to contact tenants to retrieve their left-behind property and store it for a reasonable period (typically 30 days).
Renewing a Lease
Lease renewals in New York often come with rent stabilization rules, notice requirements, and additional regulations. Knowing the ins and outs will help you keep your rental income flowing while avoiding any potential headaches.
Notice requirements: If not renewing a lease, landlords must provide 30 days’ notice if the tenant has been in the unit for 1 year, 60 days’ notice if they have been there between 1 and 2 years, and 90 days’ notice if they have been there longer than 2 years (Housing Stability & Tenant Protection Act of 2019).
Renewals: If the unit is not rent-regulated, the landlord is not required to renew the lease but must give proper notice, depending on the length of tenancy (see above). If the unit is rent-regulated, the landlord is almost always required to renew the lease, except in certain circumstances (NY GOB Code § 5-905).
Landlord’s Access to Property
Whether it’s for routine maintenance or a true emergency, landlords almost always have to enter the unit at some point during the lease term. Here are guidelines to help you maintain your tenant’s trust and privacy.
Immediate access: In the event of an emergency, landlords may enter the property without giving the tenant any notice
Notice requirements: New York does not have statewide regulations regarding the amount of notice landlords must provide to tenants; however, local guidelines may vary. Standard best practice is to provide at least 24 hours’ notice before entering the property.
Harassment: If a landlord repeatedly enters the property or regularly fails to give notice, this can be considered landlord harassment, and the tenant may be able to legally terminate their lease early.
