NY State Screening & Renting Laws

[Alex Leana]

Today I listed my available apartment on Facebook Marketplace for the first time and got an exponential number of responses within 2 hours. My price is fair for the quality and neighborhood, my main questions lie with what the screening and renting laws are in Buffalo or New York State. Any help with these questions would be much appreciated.

Questions:

Can I deny someone based on section 8? If not, how does the process work? First time landlord, so I would like to avoid it if it is not illegal.

What documentation do you require for service animals?

If I am using cozy.co for background/credit check, do they pay for the entirety of the cost? Since I am not technically taking the application fee and NYS law limits the total application fee a landlord can accept.

[Timothy Smith]

Alex, get connected with a real estate attorney now. Especially with the state of affairs in NYS. Not to scare you, but would hate to see you get hung up considering all the hard work you’ve put in to get this far. 

Yes, it is illegal to discriminate based on source of VERIFIABLE income in NYS. But, you can require tenant makes 3x (or whatever times) the rent. You also do not have to hold the apartment for someone while awaiting a Section 8 inspection. You also do not have to negotiate (lower) the rent. If you go that route, do not give anyone keys until inspection passes, deposit is paid, and first month is paid. 

Application fee is a gray area. Verbiage in NYS tenant law is unclear as to WHOM cannot accept payment over $20. Using a third party is one way around (I like RentPrep), especially after you’ve prescreened, showed, then reviewed the first part of application (income verification, rental history, references). I credit the fee towards first months rent but by the time I do the background and credit check, it’s a formality. This is where being a small, hands-on landlord pays off. 

Happy to talk to you tomorrow on the phone if you want as my research into this has been exhaustive and borderline obsessive!