5 red flags in New York City and New York State residential leases — navigating rent stabilization, security deposits, and illegal clauses.
New York law caps residential security deposits at one month's rent since 2019. Any lease requiring more is illegal.
Security deposit amount greater than one month's rent in any residential lease
Under the HSTPA, you cannot be required to pay more than one month's rent as a deposit. Refuse any higher amount and report violations to the NY AG.
Landlords charging background check or application fees above the $20 statutory limit, often burying them in lease addenda.
Application, background check, or credit check fees exceeding $20
The Housing Stability and Tenant Protection Act limits application fees to $20. Any excess must be refunded to you.
For rent-stabilized units, the landlord is required to attach the official NYC rent stabilization rider. Its absence is a significant red flag.
No NYC Rent Stabilization Lease Rider attached if the building was built before 1974 with 6+ units
If you're in a stabilized unit without the rider, you may be paying above the legal regulated rent. Contact the NYC DHCR to check your apartment's legal rent.
A flat fee for breaking the lease early that exceeds the landlord's actual damages (lost rent until re-letting the unit).
'Lease break fee of $X,XXX' or flat-fee early termination penalties
New York landlords have a duty to mitigate damages by re-letting. You only owe rent until a replacement tenant is found, not a lump-sum penalty.
Requiring a guarantor with income 80x the monthly rent — a threshold far exceeding typical guarantor standards.
Guarantor income requirements of 80x monthly rent (vs. the more typical 40-50x)
This is negotiable. Push back and offer alternative proof of creditworthiness, like a larger security deposit waiver offer or additional financial statements.
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