NY Rental Law Exam Guide

New York Rental Law for the Real Estate Exam

Rental law is a New York exam differentiator because older national rules can produce wrong answers. This page focuses on leasing caps, fee limits, deposit rules, and candidate traps tied to the post-HSTPA rental framework.

Security depositApplication fee capLate-fee limits

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NY
Rental Map
DepositOne month cap
ApplicationScreening fee limits
Late fee$50 or 5% concept
TrapNo old rent-package logic
Verify critical steps before acting.
Rental Law Snapshot

NY rental questions reward updated numerical rules.

For exam purposes, the key is to reject older “first, last, and security” assumptions and know the major caps that affect residential leasing fact patterns.

Security depositOne monthA landlord generally cannot require more than one month’s rent as security deposit.
Advance rentNo old bundleLast month’s rent plus security deposit is not the default permissible answer.
Application/screening$20 capApplication/credit/background screening charges are limited and tied to actual cost logic.
Late feeCappedLate fees are limited by amount/percentage and timing rules.
Grace periodNotice timing mattersDo not answer as if a fee applies instantly when rent is one day late.
Broker roleDisclosure and advertisingLicensees should separate legal rental limits from marketing and brokerage compensation assumptions.
Tenant protectionsStatewide impactHSTPA rules changed many older leasing practices.
Exam warningOld prep materialsRental questions are a common place where outdated material remains online.
Core Numerical Rules

Memorize the rental caps as exam guardrails.

The most testable rental-law facts are numerical and procedural.

TopicWhat to knowCandidate takeaway
Security depositGenerally limited to one month’s rent.Reject answers that allow large upfront deposits in ordinary residential scenarios.
Last month’s rentDo not combine with a one-month security deposit as the old default upfront package.Watch for questions that still use pre-HSTPA leasing habits.
Application / screening feeGenerally capped at $20 and tied to actual screening cost.The old $100–$250 application fee answer is a red flag.
Late feeLimited to the lesser of $50 or 5% of monthly rent, with timing limits.Check the grace period and amount before choosing an answer.
Key money / hold depositsHigh-risk and often impermissible depending on structure.Do not assume every “reservation” payment is acceptable.
Licensed Leasing Work

A leasing fact pattern can test both rental law and license law.

The exam may combine leasing with agency disclosure, advertising, broker supervision, or fee limits.

01
Identify the role
Is the person a salesperson, broker, landlord, property manager, tenant, or applicant?
02
Identify the charge
Is it rent, security deposit, application/screening fee, late fee, broker fee, or an unlawful extra payment?
03
Apply the cap
Use the post-HSTPA limit and reject older market-custom answers.
04
Check license context
If a salesperson is involved, remember supervision, advertising, and agency duties still apply.
Exam Traps

Older rental habits are the wrong baseline.

NY rental law is a high-yield area precisely because many candidates carry outdated assumptions into the exam.

NY guide note
First + last + security
Do not select the old bundle as the ordinary permissible upfront requirement.
NY guide note
$100 application fee
A high application/screening fee is usually the trap. Know the $20 cap concept.
NY guide note
Immediate late fee
Check the timing and cap before deciding whether a late fee is permitted.
NY guide note
Broker vs landlord fee
Do not confuse a brokerage compensation issue with a landlord screening/application charge.
NY guide note
Rent-stabilized vs market-rate
Read the fact pattern; do not import one regime into every rental question.
NY guide note
NYC-only assumption
Some rules are statewide; do not assume every rental protection is only a city rule.
Next Guides

Use rental law with agency and exam-prep review.

Rental questions often sit near agency disclosure, advertising, fair housing, and licensing supervision topics.

Related guide
Law exam topics
Use for the wider NY rule map.
Open guide →
Related guide
Exam prep
Use to turn rental rules into practice scenarios.
Open guide →
Related guide
NYC guide
Use for city-market context without creating a separate city license.
Open guide →
Related guide
Sponsoring broker
Use for supervision and first-broker questions.
Open guide →
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FAQ

New York Rental Law for the Real Estate Exam FAQ

Short answers for this New York licensing topic.

Know the one-month security deposit concept, the $20 application/screening fee cap, and late-fee limits tied to $50 or 5% of monthly rent with timing conditions.

They often test post-HSTPA rules, while many older study materials and market habits still reflect pre-2019 practices.

Do not use that as the default answer. NY tenant guidance says the one-month security deposit limit prevents asking for last month’s rent and a security deposit as the upfront package.

No. It is an exam-readiness guide for candidates. Actual rental issues should be handled through current legal and regulatory guidance.