By Laura Krasniqi, REALTOR® at Joseph Baratta Realty & Co.
Maybe you're moving but want to keep your home as an investment. Maybe you've inherited a property, or you're testing the rental market before you sell. Renting out a home in Westchester can be a smart move, but New York has specific rules landlords need to follow. Here's an overview of the key ones before you list.
Quick Answer
In New York, landlords generally can't collect a security deposit of more than one month's rent, and application fees for background and credit checks are capped at $20 or the actual cost, whichever is less. After a tenant moves out, the deposit must be returned within 14 days, along with an itemized statement of any deductions. Fair housing laws also prohibit discrimination based on a tenant's lawful source of income.
How much can you charge for a security deposit?
Under New York's Housing Stability and Tenant Protection Act of 2019, a security deposit generally can't be more than one month's rent.
The deposit belongs to the tenant, so it should be handled carefully. Keep clear records and follow New York's rules for holding the deposit.
Can you charge application fees?
Yes, but they're limited. New York caps fees for background and credit checks at $20 or the actual cost, whichever is less. If a tenant provides a recent background or credit check, the landlord generally can't charge for a new one.
When do you have to return the security deposit?
Within 14 days after the tenant moves out.
If you're keeping any part of the deposit for damage beyond normal wear and tear or unpaid rent, you must provide an itemized statement explaining the deductions. If you don't provide it within 14 days, you may lose the right to keep any of the deposit.
Many landlords offer a walk-through inspection before move-out, so tenants have a chance to fix issues first. Photos at move-in and move-out help everyone.
What do fair housing laws require?
Fair housing laws protect tenants from discrimination, and they apply to landlords of all sizes.
In New York, protected characteristics include a tenant's lawful source of income. That means you generally can't turn someone away because they pay rent with a housing voucher or other lawful income. Westchester County also has its own fair housing protections.
Treat every applicant the same way, use consistent screening criteria, and keep records of your decisions.
What else should new landlords think about?
- Insurance: let your insurance company know the home will be a rental, and ask about landlord coverage.
- Local rules: check with your town or village about any rental permits, inspections, or registration requirements.
- A written lease: a clear lease protects both you and your tenant.
- Property management: decide whether you'll manage the home yourself or work with a professional.
- Taxes: rental income is generally taxable, so talk with a tax professional about deductions and record-keeping.
The Bottom Line
Renting out a home in Westchester can be a great way to build wealth, but New York's rules matter. Security deposits are generally limited to one month's rent, application fees are capped, deposits must be returned within 14 days with an itemized statement, and fair housing laws protect tenants' lawful source of income. Learn the rules up front, put everything in writing, and you'll start your rental on solid ground.
Frequently Asked Questions
Under the Housing Stability and Tenant Protection Act of 2019, a security deposit generally can't be more than one month's rent.
Fees for background and credit checks are capped at $20 or the actual cost, whichever is less.
Within 14 days after the tenant moves out, with an itemized statement of any deductions.
Generally no. New York's fair housing laws prohibit discrimination based on a tenant's lawful source of income, including housing vouchers.
Keep Learning
- Read: Selling Your Home in Westchester County: A Step-by-Step Guide for Sellers
- Read: Credits and Loans for Westchester County Home Buyers: What to Know Before You Borrow
- Get a Home Valuation
Deciding whether to rent or sell your Westchester home? I work with both landlords and tenants, and I'm happy to help you weigh your options. Schedule a consultation, call (914) 486-8387, or email laura@barattarealty.com.
