Landlord and Tenant Laws in New York – 2025

New York’s landlord-tenant laws are among the most complex in the United States, with different rules applying based on your specific county or town. New York State has several different laws governing the landlord-tenant relationship, which can vary depending on the county or town where you live. These laws cover everything from rent control and security deposits to eviction procedures and property maintenance requirements.

Understanding these regulations is essential for anyone involved in New York’s rental market, whether as a property owner or tenant. The state’s rent stabilization programs, habitability standards, and tenant protection laws create a unique investment environment that requires careful navigation. New York landlord-tenant laws play a crucial role in rental property management and directly impact how rental properties generate income.

This guide covers the fundamental laws governing New York rentals, explores income opportunities within the regulatory framework, and examines how everyday investors can participate in the state’s rental market without the traditional barriers of property ownership and management.

Key Takeaways

• New York’s landlord-tenant laws vary by location and include strict rent control, security deposit limits, and tenant protection requirements
• Rental properties in New York must meet specific habitability standards and safety requirements that directly impact investment returns
• Fractional real estate investing allows everyday investors to earn passive rental income from New York properties without traditional ownership responsibilities

Landlord and Tenant Laws in New York Basics

New York landlord-tenant laws establish specific duties for property owners including maintenance requirements and proper notice procedures. Tenants receive protection through rent stabilization programs and habitability standards that vary between New York City and other areas of the state.

Landlord Roles in New York

Property owners in New York must maintain rental units in habitable condition. This includes providing heat, hot water, and essential services year-round.

Landlords must give proper notice before entering tenant units. They need 24 hours advance notice except for emergencies.

Required landlord responsibilities include:

• Keeping common areas clean and safe
• Making necessary repairs within reasonable time
• Providing working smoke and carbon monoxide detectors
• Maintaining electrical and plumbing systems

For rent increases in New York, landlords must follow specific rules. In rent-stabilized units, increases are limited by government guidelines.

Landlords cannot discriminate based on protected characteristics. They must follow fair housing laws when screening tenants.

Security deposits cannot exceed one month’s rent in most cases. Landlords must return deposits within a reasonable time after tenancy ends.

Tenant Rights in New York

Tenants have the right to live in safe, habitable conditions. They can withhold rent or make repairs and deduct costs if landlords fail to maintain the property.

New York tenants receive protection from illegal evictions. Landlords must follow court procedures to remove tenants legally.

Key tenant protections include:

• Right to privacy in rental units
• Protection from retaliatory evictions
• Right to form tenant organizations
• Access to essential services

Tenants can challenge illegal rent increases. In rent-controlled and rent-stabilized apartments, increases are strictly regulated.

Renters have the right to request repairs in writing. If landlords ignore reasonable requests, tenants can contact local housing authorities.

Most tenants cannot be evicted without proper court proceedings. Even month-to-month tenants receive specific notice requirements before eviction.

Key Rules by City and State

New York City has stricter tenant protections than other areas of the state. The city’s rent stabilization laws cover nearly one million apartments.

NYC-specific rules include:

• Rent Guidelines Board sets annual increase limits
• Just cause eviction requirements for many tenants
• Stricter lead paint disclosure rules
• Enhanced warranty of habitability standards

Outside NYC, New York state landlord-tenant laws provide baseline protections. Local municipalities may add additional rules.

State law requires landlords to provide written leases for tenancies longer than one year. Month-to-month tenancies require 30 days notice to terminate.

Upstate cities like Albany and Buffalo have their own housing codes. These often include additional maintenance requirements and tenant protections.

Rural areas typically follow state minimums. However, all New York landlords must comply with state habitability standards regardless of location.

Rental Property Requirements in New York

New York landlords must follow strict rules for lease agreements, security deposits, and eviction procedures. The state limits security deposits to one month’s rent and requires specific lease terms for valid rental agreements.

Lease Agreement Standards

Valid lease agreements in New York must include the landlord’s name, tenant’s name, property address, rent amount, and lease term. The rental lease agreement requirements specify these essential elements for legal contracts.

Required lease disclosures include:

• Lead paint disclosure for pre-1978 buildings
• Landlord’s contact information
• Bank details for security deposits in buildings with 6+ units

Monthly rent can be set at any amount for non-regulated apartments. Rent-regulated units follow specific pricing rules set by local Rent Guidelines Boards.

Lease renewal terms depend on tenancy length. Landlords must provide 30 days notice for tenants living there less than one year, 60 days for one to two years, and 90 days for over two years.

Security Deposit Rules

Security deposits cannot exceed one month’s rent in New York. This means landlords cannot collect both last month’s rent and a separate security deposit from tenants.

Buildings with six or more apartments must place deposits in interest-bearing New York bank accounts. Landlords must notify tenants of the bank name, address, and deposit amount in writing.

Security deposit interest rules:

• Landlords keep 1% annually as administrative fees
• Remaining interest belongs to tenants
• Tenants choose annual payments, rent credits, or end-of-lease payments

For non-regulated units, landlords have 14 days to return deposits after move-out. They must provide itemized receipts for any deductions or forfeit the entire deposit.

New York landlord tenant laws require deposit transfers to new owners within five days when buildings sell.

Eviction Process in New York

New York evictions require proper legal procedures and court proceedings. Landlords cannot forcibly remove tenants or shut off utilities to force them out.

Common eviction grounds include:

• Non-payment of rent – Most frequent cause
• Lease violations – Breaking rental agreement terms
• Holdover tenancy – Staying beyond lease expiration
• Nuisance behavior – Disturbing other tenants

Notice requirements vary by eviction type. Non-payment cases need 14-day notices, while lease violations typically require 30-day cure notices.

Court proceedings follow notice periods. Tenants can contest evictions and present defenses during hearings. The process often takes several months to complete.

Landlords must use marshal or sheriff services for actual tenant removal. Self-help evictions result in penalties and potential tenant damages.

Rental Income Opportunities in New York

New York rental markets offer strong yields in specific neighborhoods, with rent collection strategies that maximize returns for property investors. Average rental yields range from 3-8% depending on location and property type.

New York Rental Yields

Manhattan delivers rental yields between 3-5% annually. Studio apartments in neighborhoods like Hell’s Kitchen generate approximately $2,800-3,500 monthly rent.

Brooklyn offers higher yields of 5-7% in areas like Bedford-Stuyvesant and Crown Heights. Two-bedroom apartments typically rent for $2,200-3,000 monthly.

Queens provides the strongest yields at 6-8% in neighborhoods like Astoria and Long Island City. One-bedroom units command $1,800-2,400 monthly rent.

The Bronx delivers yields of 7-9% in developing areas like Mott Haven and Concourse Village. Properties here rent for $1,400-2,000 monthly.

Rent-stabilized properties have lower yields but provide steady income with regulated rent increases set annually by local boards.

Popular Neighborhoods for Landlords

Long Island City attracts young professionals with new construction and subway access. Average rent per square foot reaches $50-60.

Williamsburg commands premium rents due to restaurants and nightlife. Two-bedroom apartments rent for $3,500-4,500 monthly.

Astoria offers strong rental demand with diverse dining and easy Manhattan access. Properties here maintain 95%+ occupancy rates.

Bushwick provides emerging opportunities with artistic communities and lower entry costs. Rental growth averages 5-7% annually.

Harlem delivers steady returns with historic charm and Columbia University proximity. Studio apartments rent for $1,800-2,400 monthly.

These neighborhoods benefit from public transportation, employment centers, and cultural amenities that drive consistent rental demand.

Rent Collection Strategies

Digital payment systems reduce collection time and administrative costs. Most tenants prefer online rent payments over checks or cash.

Automatic payments increase on-time collection rates to 95%+ and reduce late fees. Set up recurring transfers on the first business day of each month.

Grace periods of 5 days are legally required before charging late fees. Maximum late fees are $50 or 5% of monthly rent, whichever is less.

Written receipts are mandatory for cash, money order, or cashier’s check payments. Include payment date, amount, rental period, and apartment number.

Security deposits cannot exceed one month’s rent. Landlords with 6+ units must place deposits in interest-bearing accounts and provide annual statements.

Professional management companies handle collections for 8-12% of monthly rent, reducing landlord time investment while maintaining compliance.

Passive Real Estate Investing in New York

Many investors want to earn rental income from New York properties without the time demands of active management. Passive real estate investing allows investors to generate income while someone else handles tenant screening, maintenance, and day-to-day operations.

Benefits of Passive Income Real Estate

Steady Monthly Cash Flow Rental properties provide predictable monthly income streams. New York’s strong rental market means consistent tenant demand across most neighborhoods.

No Direct Management Responsibilities Investors avoid tenant calls, repair coordination, and property showings. Professional management companies handle these tasks for a fee.

Geographic Diversification Investors can own properties in different New York markets without living nearby. This spreads risk across multiple locations and property types.

Lower Time Investment Passive investing requires minimal weekly time commitment. Investors review monthly statements and make occasional strategic decisions rather than handling daily operations.

Professional Expertise Access Property managers bring local market knowledge and established vendor relationships. They understand New York landlord tenant laws and compliance requirements.

Passive Investment Options

Real Estate Investment Trusts (REITs) REITs trade on stock exchanges like regular stocks. They own and operate income-producing real estate across New York markets.

Fractional Real Estate Platforms These platforms allow investors to buy shares in specific properties with lower capital requirements. Investors own a percentage of the property and receive proportional rental income.

Real Estate Crowdfunding Multiple investors pool money to purchase properties or fund real estate projects. Minimum investments typically range from $1,000 to $25,000.

Property Management Companies Investors buy properties directly but hire management companies to handle operations. Management fees typically range from 8-12% of rental income.

Real Estate Partnerships Investors partner with active real estate professionals who handle property management in exchange for a share of profits.

Passive Management Solutions

Full-Service Property Management Companies handle tenant screening, rent collection, maintenance, and legal compliance. They typically charge 8-12% of monthly rent plus additional fees for services.

Hybrid Management Models Some companies offer technology-enabled management with lower fees. Investors maintain more control while delegating specific tasks.

Tenant Placement Services These services find and screen tenants but leave ongoing management to property owners. Fees typically equal one month’s rent.

Maintenance-Only Services Companies handle repairs and maintenance while owners manage tenant relationships. This reduces time commitment while maintaining control over tenant selection.

Technology Platforms Digital tools help streamline rent collection, maintenance requests, and tenant communication. Many integrate with accounting software for simplified record-keeping.

Fractional Real Estate Investing for Everyday Investors

Fractional real estate investing lets people buy shares in rental properties for as little as $100, earning passive income from rent and potential appreciation. This approach eliminates the need for large down payments, property management, or dealing with tenants directly.

How Fractional Ownership Works

Fractional ownership platforms pool money from multiple investors to purchase single-family rental homes. Each investor owns a percentage of the property based on their investment amount.

The platform handles all property management tasks. This includes finding tenants, collecting rent, and maintaining the property. Investors receive monthly rental income payments minus platform fees.

Investment minimums typically range from $100 to $1,000 per property. Popular platforms like fractional real estate investing services make it simple to browse available properties and invest online.

Most platforms require investors to hold their shares for 5-7 years. Some newer platforms offer secondary markets where investors can sell shares early, though liquidity remains limited.

Investors earn money two ways: monthly rental income and property appreciation when the home sells. Tax benefits like depreciation deductions pass through to fractional owners proportional to their ownership stake.

Risks and Rewards of Fractional Investing

Rewards include low barriers to entry and passive income generation. Investors can diversify across multiple properties and markets without managing anything themselves.

Expected returns typically range from 4-8% annually. A $1,000 investment might generate $40-80 per year in rental income, plus potential appreciation gains.

Major risks include high fees and illiquidity. Platforms charge multiple fees including acquisition fees, management fees, and administrative costs that can reduce net returns significantly.

Property concentration risk exists since investors bet on individual homes rather than diversified portfolios. Local market downturns can impact both rental income and property values.

Unlike REITs or stocks, fractional real estate investments cannot be easily sold. Most platforms require multi-year holding periods with limited exit options.

Platform risk represents another concern. Investors rely on young companies to manage properties and distribute payments properly over many years.

Popular Property Types

Single-family rental homes dominate fractional investing platforms. These properties typically range from $150,000 to $500,000 in value across growing metropolitan areas.

Most platforms target homes in emerging markets with strong job growth and population increases. Popular locations include cities in Texas, Florida, North Carolina, and Tennessee.

Properties usually feature 2-4 bedrooms and appeal to middle-income renters. Platforms prefer recently built or renovated homes that require minimal immediate maintenance.

Vacation rental properties represent a growing segment. These investments target short-term rental markets in tourist destinations, though they carry higher income volatility.

Some platforms offer commercial real estate fractions including small apartment buildings or retail properties. These typically require higher minimum investments of $5,000 or more.

Property selection focuses on rental income potential and appreciation prospects. Platforms analyze local market conditions, school districts, and economic growth indicators before acquiring properties.

How Ark7 Makes New York Rental Investment Easy

Ark7 allows investors to buy fractional shares in New York rental properties starting at just $20, eliminating the need for large down payments or property management responsibilities. The platform handles all compliance requirements and provides detailed performance tracking for passive income generation.

Ark7 Platform Features

Ark7 operates as a real estate crowdfunding platform that breaks down property ownership into affordable shares. Investors can purchase fractional ownership in single-family homes, multifamily units, and short-term rentals across New York.

The platform requires a minimum investment of only $20 per property share. This low barrier allows investors to diversify across multiple New York properties without significant capital requirements.

Each property listing includes detailed information about the asset, location, and expected returns. Investors can review property photos, financial projections, and neighborhood data before making investment decisions.

The platform accepts both accredited and non-accredited investors. Users can build portfolios by selecting shares in different property types and locations throughout New York’s five boroughs.

Monthly cash distributions from rental income are paid directly to investors’ accounts. This provides regular passive income without the responsibilities of direct property ownership or tenant management.

Ark7 Compliance and Management

Ark7 handles all regulatory compliance requirements for New York rental properties. The platform manages tenant screening, lease agreements, and adherence to local housing laws without investor involvement.

Property management services include rent collection, maintenance requests, and tenant communications. Investors avoid dealing with late-night repair calls or difficult tenant situations that traditional landlords face.

The company ensures compliance with New York’s complex rent stabilization laws and tenant protection regulations. This includes proper notice requirements, security deposit handling, and eviction procedures when necessary.

Property taxes, insurance, and routine maintenance costs are managed through the platform. These expenses are factored into the investment returns, so investors receive net rental income distributions.

Legal documentation and SEC compliance are handled by Ark7’s team. The platform operates under proper regulatory oversight, providing investors with legitimate fractional real estate ownership.

Tracking Investment Performance

Ark7 provides a dashboard showing individual property performance and portfolio returns. Investors can monitor rental income, property appreciation, and total investment performance in real-time.

Monthly statements detail rental income distributions from each property. The platform shows occupancy rates, rental amounts, and any maintenance expenses that affect returns.

Property valuation updates help investors track potential appreciation over time. The platform provides market data and comparable sales information for each investment property.

Tax reporting is simplified through the platform’s documentation system. Investors receive necessary tax forms and can track deductible expenses related to their fractional ownership investments.

Performance metrics include cash-on-cash returns and annualized yield calculations. These help investors compare their New York rental investments against other asset classes in their portfolios.

Why Everyday Investors Choose Ark7 for New York Rentals

New York’s rental market offers strong returns, but traditional property investment requires significant capital and ongoing management. Ark7’s fractional real estate platform eliminates these barriers by allowing investors to purchase shares in rental properties starting at just $20.

No Down Payments or Mortgages Needed

Traditional rental property investment in New York typically requires 20-25% down payments on properties that often cost $500,000 or more. This means investors need $100,000-$125,000 just to get started.

Ark7 removes this barrier entirely by allowing fractional ownership. Investors can purchase shares for as little as $20, making New York rental properties accessible to anyone.

The platform eliminates mortgage applications, credit checks for financing, and loan qualification processes. Investors simply create an account and start buying shares immediately.

This approach allows investors to diversify across multiple properties instead of concentrating all capital in one rental. They can spread $1,000 across 10 different properties rather than saving for years to buy one.

Hassle-Free Landlord Experience

Property management consumes significant time and creates ongoing responsibilities. Traditional landlords handle tenant screening, rent collection, maintenance requests, and legal compliance.

Ark7 manages all operational aspects of rental properties. The platform handles tenant screening, lease agreements, rent collection, and maintenance coordination for investors.

Key management services include:

• Tenant screening and placement
• Monthly rent collection
• Property maintenance and repairs
• Legal compliance and documentation
• Financial reporting and tax documentation

Investors receive monthly rental income distributions without dealing with tenant calls, emergency repairs, or vacancy management. This passive approach suits investors who want rental income without landlord duties.

Getting Started with Ark7

The platform streamlines the investment process into simple steps. Account creation takes minutes and requires basic personal information and identity verification.

Investment process:

1. Create free account with email and basic details
2. Complete identity verification
3. Browse available New York properties
4. Purchase shares in selected properties
5. Receive monthly rental income distributions

Investors can start with small amounts and gradually increase their portfolio. The platform provides detailed property information, including photos, financial projections, and neighborhood data.

Monthly statements track rental income, property appreciation, and total returns. Investors can sell shares on Ark7’s marketplace when they want to exit positions.

Frequently Asked Questions

New York’s landlord-tenant laws contain specific protections for tenants without written leases, strict prohibitions on landlord actions, and clear responsibilities for property owners. Recent legislative changes have strengthened tenant rights while creating new compliance requirements for landlords across different regions of the state.

What are the specific protections for tenants without a lease in New York State?

Tenants without written leases still have substantial legal protections under New York law. These tenants are considered month-to-month tenants with the same basic rights as those with formal lease agreements.

Month-to-month tenants cannot be evicted without proper cause and notice. Landlords must provide 30 days written notice to terminate the tenancy for tenants who have lived in the unit for less than one year.

Tenants who have occupied the property for one to two years must receive 60 days notice. Those who have lived there for two years or more are entitled to 90 days notice before termination.

Even without a lease, tenants have the right to habitable living conditions. Landlords must maintain essential services like heat, hot water, and electricity regardless of whether a written agreement exists.

Tenant rights in New York extend to security deposit protections, rent receipt requirements, and protection from retaliatory evictions for tenants without formal leases.

Which actions are expressly prohibited for landlords by the laws in New York?

New York law strictly prohibits landlords from engaging in self-help evictions. Landlords cannot change locks, remove tenant belongings, or shut off utilities to force tenants out of their homes.

Discrimination based on protected characteristics is illegal. Landlords cannot refuse to rent or treat tenants differently based on race, religion, gender, disability, familial status, or source of income.

Retaliatory actions against tenants are prohibited. Landlords cannot evict, harass, or reduce services because tenants complained about housing conditions or exercised their legal rights.

Landlords cannot charge excessive security deposits. The maximum security deposit is limited to one month’s rent, and landlords cannot demand both first month’s rent and a security deposit.

Entry without proper notice is forbidden. Landlords must provide reasonable notice before entering rental units except in emergencies or with tenant consent.

What are the primary responsibilities of a landlord in New York State?

Landlords must maintain rental properties in habitable condition throughout the tenancy. This includes ensuring adequate heat, hot water, electricity, and structural integrity of the building.

Property owners are required to make necessary repairs promptly. When tenants report problems that affect habitability, landlords must address these issues within a reasonable timeframe.

Landlords must provide proper notice before entering rental units. Generally, 24 hours notice is required for non-emergency inspections or repairs during reasonable hours.

Security deposit handling follows strict rules. Landlords must place deposits in interest-bearing accounts for buildings with six or more units and return deposits within specified timeframes.

Rent regulation compliance requires landlords to follow proper procedures for rent increases, maintain accurate records, and register rent-stabilized units with appropriate agencies.

How does tenant protection in Upstate New York differ from other areas?

Upstate New York generally follows state-wide tenant protection laws but lacks the additional rent stabilization protections found in New York City and surrounding counties. Most upstate rental units are not subject to rent control or rent stabilization regulations.

Local municipalities may have their own housing codes and tenant protection ordinances. Cities like Albany, Buffalo, and Syracuse have enacted specific rental registration requirements and housing quality standards.

Eviction procedures remain consistent throughout the state. However, local courts may have different processing times and procedures for handling landlord-tenant disputes.

Security deposit laws apply uniformly across New York State. The same interest requirements and return procedures apply whether the property is located upstate or downstate.

Discrimination protections are consistent statewide. All New York tenants receive the same protections against housing discrimination regardless of location.

What is the required notice period for a landlord to terminate tenancy in New York?

Notice requirements depend on the length of the tenancy and the type of lease agreement. Month-to-month tenants receive different notice periods based on how long they have occupied the property.

Tenants with less than one year of occupancy must receive 30 days written notice. This applies to both month-to-month arrangements and holdover tenants after lease expiration.

One to two years of occupancy requires 60 days written notice for termination. The notice must be properly served and include specific information about the termination date.

Tenants who have lived in the unit for two years or more are entitled to 90 days notice. This extended notice period recognizes the tenant’s established residence and need for adequate relocation time.

Weekly tenants need only one week’s notice. Daily or weekly rental arrangements follow different notice requirements than monthly tenancies.

Are there recent changes in New York’s landlord-tenant law that renters should be aware of?

The Housing Stability and Tenant Protection Act of 2019 significantly strengthened tenant rights across New York State. These changes eliminated many loopholes that previously allowed landlords to remove units from rent regulation.

Vacancy bonuses and longevity bonuses for rent-stabilized apartments have been eliminated. Landlords can no longer increase rent by 20% when apartments become vacant or apply additional increases for long-term tenants.

Preferential rent protections now prevent landlords from suddenly raising rents to legal maximums. Tenants paying below-market rates in rent-stabilized units maintain those lower rates with standard percentage increases.

Major Capital Improvement increases are now capped at 2% of current rent annually. These increases are temporary and must be removed after 30 years, providing long-term relief for tenants.

Security deposit return procedures have been strengthened for non-regulated units. Landlords must now provide itemized receipts for damages and allow pre-move-out inspections to help tenants recover their full deposits.