Tenant Screening Law

Last year, New York City passed a local law titled "Tenant Screening Report Disclosure." This law only affects NYSAR members practicing in New York City. This new law sets forth certain requirements of any person, including real estate brokers (the term brokers means any broker and all of their associated licensees), who screen prospective tenants on behalf of a landlord. Essentially, any brokerage acting as an agent of the landlord, either through an agreement or as a property manager, that requests application information from a prospective tenant or tenant's agent must provide certain disclosures to the tenant. These disclosures can be found in NYC Administrative Code §20-807 through §20-811. A copy of the law is set forth below. Furthermore, the Department of Consumer Affairs has also promulgated a rule under the local law that can be found in the Rules of the City of New York in §5-625.

Section 20-808 of the law requires any person who requests application information directly from a prospective tenant or their agent to disclose whether the application information will be used to obtain a tenant screening report, including but not limited to credit reports. If the information is being used to obtain a tenant screening report, the name and address of the consumer reporting agency must be provided.

Section 5-625 of the new rule requires a disclosure to also be posted in any location at which the principal purpose is conducting business transactions pertaining to the rental of residential real estate properties. This disclosure must be placed where it is conspicuously visible to a consumer who is seated while the transaction is conducted at such location (such as the broker's office or in a building where units are rented). It should be noted that the rule requires certain type size and color requirements for the disclosure posting. Please see the rule for more information.

NYSAR urges all members that practice in New York City to review the law and rule in order to be sure your office is in full compliance. For your convenience, links to the law and the rule can be found below.

NYSAR will be providing updates to our members when new information is available.

To aid NYSAR’s members in complying with the requirements of the New York City Tenant Screening Law, NYSAR has created a sign that you may download and print. Click here to download the sign.

Click here for the Tenant Screening Law. 
Click here for the Tenant Screening Rule.

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