Charged an illegal broker or application fee? Get it back (NYC)
If a New York City landlord or broker hit you with a big application fee, a "credit check" charge, or a broker's fee you never agreed to, take a breath: many of those charges are flatly illegal, and the money is often yours to get back. Application fees are capped at $20 statewide, and since June 2025 a broker's fee generally can't be dumped on you if the landlord hired that broker. This guide shows you exactly which fees are legal, which are not, and how to get a refund without a lawyer.
What the law says
Two laws do most of the work here, and it helps to keep them separate in your mind.
1. The $20 application-fee cap (NY Real Property Law §238-a). This came from the 2019 Housing Stability and Tenant Protection Act (HSTPA) and applies across all of New York State, including every borough of NYC. A landlord may charge you for a background check and credit check, but the total is capped at the actual cost, or $20, whichever is lower. On top of that, the landlord must give you a copy of the report and the receipt showing what it cost. The same law bans separate "application fees," "processing fees," or "administrative fees" for the application itself — the $20 is the ceiling for the whole thing.
There's a powerful waiver built in: if you hand the landlord your own background check and credit report that are less than 30 days old, they must waive the fee entirely. That's exactly why keeping a ready-to-share renter profile can save you money on every application.
2. The FARE Act — the broker fee follows whoever hired the broker. The Fairness in Apartment Rental Expenses (FARE) Act is a NYC law that took effect June 11, 2025. The core rule is simple: whoever hires the broker pays the broker. For the vast majority of NYC listings, the landlord is the one who hired the listing broker — which means the landlord, not you, owes that fee. A landlord-hired broker can no longer pass a one-or-two-month "broker fee" on to the tenant. The Act also requires that any fees a tenant does owe be disclosed in writing, in the listing and before you sign, and it bans hiding landlord broker costs inside inflated "move-in" charges. The NYC Department of Consumer and Worker Protection (DCWP) enforces it, with penalties that climb into the hundreds of dollars per violation.
A quick note on security deposits, since they're often bundled into "move-in" demands: under General Obligations Law §7-108, your deposit is capped at one month's rent. Anything beyond that — "last month plus two months' security" — is illegal too.
What to do — step by step
- Spot the illegal charge. Line up every dollar you were asked to pay: application fee, "credit check," broker fee, extra deposit, "admin" or "key" fees. Compare them to the legal limits in the table below. If your "application fee" was $75, or you paid a broker fee on an apartment the landlord listed, you likely have a claim.
- Gather your paper trail. Save the listing (screenshot it, including any fee language), your lease or rider, every receipt, Zelle/Venmo/check record, and all texts and emails. Note who charged you, how much, and the date. For the $20 cap, keep any receipt the landlord did — or didn't — give you for the actual background-check cost.
- Ask for the refund in writing first. Send a short, polite email or letter stating the charge, the law it violates (§238-a for app fees; the FARE Act for a landlord-broker fee), and the amount you want returned. Give a deadline, like 14 days. Keep it factual. Many landlords and brokers refund quietly once they see you know the rule. A ready-made request letter is in our templates.
- File a complaint with the right agency. For an illegal broker fee, file with DCWP (call 311 or file online). For an illegal application/credit-check fee or an over-the-cap deposit, complain to the NY State Attorney General's housing unit. You can do both if both happened.
- Call 311. It's the front door to NYC housing help and can route a broker-fee or deposit complaint to DCWP and connect you to tenant resources.
- Get free legal help if you're stuck. If the landlord ignores you or you're facing move-in pressure or a threat not to rent, a free tenant attorney or legal-aid group can send a demand letter or take it further. See the free-help list below.
- Go to Small Claims Court if needed. For a wrongly-kept fee or deposit, NYC Small Claims Court lets you sue for up to $10,000 without a lawyer for a small filing fee. Bring your receipts and messages. Under §238-a and the deposit law, willful violations can expose the landlord to extra damages.
What's legal vs. what isn't
| The charge | Legal? | The rule |
|---|---|---|
| "Application fee" of $50, $75, $100+ | Illegal | Capped at $20 total for background + credit check (§238-a) |
| Background/credit check charged at actual cost up to $20, with receipt | Legal | Allowed only up to the lower of actual cost or $20 |
| Any fee when you provided your own report (under 30 days old) | Illegal | Landlord must waive the fee entirely (§238-a) |
| Broker fee passed to you when the landlord hired the broker | Illegal | Whoever hires the broker pays (FARE Act, June 2025) |
| Broker fee when you hired your own broker to find a place | Legal | You hired them, so you pay — but it must be disclosed |
| Undisclosed "move-in," "admin," or "key" fees | Illegal | Fees you owe must be disclosed in writing up front (FARE Act) |
| Security deposit over one month's rent | Illegal | Deposit capped at one month (GOL §7-108) |
| Late fee over $50 or 5% of monthly rent | Illegal | Late fees capped at the lower of $50 or 5% (HSTPA) |
Where to get free help
- NYC 311 — call 311 (or 212-NEW-YORK) or visit portal.311.nyc.gov to report a broker fee or deposit problem and reach housing resources.
- NYC Dept. of Consumer & Worker Protection (DCWP) — enforces the FARE Act and licenses brokers; file a broker-fee complaint at nyc.gov/site/dcwp.
- NY State Attorney General — Housing Protection Unit — takes application-fee and deposit complaints at ag.ny.gov or 1-800-771-7755.
- Housing Court Answers — free hotline for tenants navigating fees, deposits, and court: housingcourtanswers.org or 212-962-4795.
- NYC Tenant Helpline / HRA legal services — free tenant lawyers through the Office of Civil Justice: nyc.gov/site/hra.
- NYS Homes & Community Renewal (HCR) — for rent-regulated apartments and overcharge questions: hcr.ny.gov.
Frequently asked questions
How much can a landlord charge for an application or credit check in NYC?
No more than $20 total for the background check and credit check combined — and only if that's the actual cost. If the reports cost less than $20, they can only charge the lower amount, and they must give you a copy of the report and the receipt. Separate "application" or "processing" fees on top of that are not allowed under Real Property Law §238-a.
Who pays the broker fee in NYC now?
As of the FARE Act on June 11, 2025, whoever hired the broker pays the broker. Since landlords hire the listing broker for most apartments, the landlord owes that fee — it can't be passed to you. You'd only owe a broker fee if you personally hired a broker to hunt for you, and even then it has to be disclosed in writing. Read the details in our FARE Act explainer.
Can a landlord charge me a fee if I bring my own credit report?
No. If you provide your own background check and credit report that are less than 30 days old, the landlord must waive the check fee entirely. This is one of the easiest ways to avoid the charge — see how to prepare one in our application-fee waiver guide.
How do I get an illegal fee refunded?
Ask in writing first, citing the law and a deadline. If they refuse, file a complaint — with DCWP (via 311) for a broker fee, or the NY Attorney General for an application-fee or deposit issue — and, if needed, sue in Small Claims Court for up to $10,000. Keep every receipt and message; that evidence is what wins these cases.
What's the most a landlord can take as a security deposit?
One month's rent. Under General Obligations Law §7-108, any deposit or advance beyond a single month's rent is illegal, and the deposit must be returned within 14 days after you move out, minus any itemized, lawful deductions.
Is it worth filing a complaint over a small fee?
Yes. Filing is free, it creates a record that helps other renters, and agencies can order refunds and impose penalties that far exceed the fee itself. Even a short written demand often gets your money back once the landlord sees you know the law.
Official sources
- NYC Department of Consumer & Worker Protection (DCWP) — enforces the FARE Act and broker licensing
- New York State Office of the Attorney General — tenant rights, application fees, and deposit complaints
- NYC 311 — report housing and fee problems and reach city services
- NYS Homes & Community Renewal (HCR) — rent regulation and overcharge resources
- NYC Human Resources Administration (HRA) — free legal services for tenants
- NYC Housing Preservation & Development (HPD) — tenant resources and building information
Want to stop paying application fees altogether? A ready-to-share renter profile lets you waive the check — see /for-renters, browse more guides at /resources, or learn the full picture in /resources/nyc-renter-rights.
This guide is educational information, not legal advice. Facts current as of July 2026; laws change — verify with the official sources above, and for your specific situation talk to a tenant attorney or legal-aid group (many are free).
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