You may believe you have a right to charge extra fees to residential tenants for certain items or services. For example, you may want to charge your tenants a fee for paying rent late or for taking over use of the elevator when moving furniture into their apartments. But it’s important to know which items or services you can charge fees for—and which ones you can’t.

For rent-stabilized or rent-controlled tenants, the Division of Housing and Community Renewal (DHCR) doesn’t permit you to charge extra fees whenever you want to. And, if you make a mistake, the DHCR could find you’ve collected a rent overcharge and order you to refund not only the overcharge but also triple damages. In its Lease Rider for Rent-Stabilized Tenants, the DHCR includes lists of specific fees it considers to be either “lawful” or “unlawful.” A copy of the DHCR Lease Rider form can be found online at https://hcr.ny.gov/system/files/documents/2024/10/ra-lr1-10-2024-fillable.pdf. 

As discussed here, for unregulated tenants, there are fewer restrictions although some fees are also specifically prohibited or limited by law. 

Fees That Are Allowed

You may charge extra fees to tenants, including rent-stabilized tenants, for the following items or services:

Late payment of rent. You may charge a late fee to a rent-stabilized tenant who pays the rent late. But you must meet two conditions:

• The tenant’s vacancy and renewal leases must give you the right to charge a late fee. There must be a clause in the original lease that authorizes the collection of a late fee; and
• The amount of the fee must be reasonable. The DHCR’s Lease Rider states that late fees can be no more than the lesser of $50 or 5 percent of the monthly rent currently being charged and collected. See also Matter of Ford: DHCR Adm. Rev. Docket No. IS410013RK (Nov. 2021), where the DHCR applied this late fee cap.

You may also charge a late fee to an unregulated tenant who pays rent late. Including specific information in the original lease may help avoid misunderstandings or disputes. In one case, Hillside Park 168, LLC v. Benjamin (App. T. 2 Dept. 2019), a small claims court ruled that a 5 percent late fee for unpaid rent was unenforceable as against public policy.

Legal fees. An owner may collect “reasonable” attorney’s fees from a tenant only if a lease clause permits this and only if there is a court or administrative determination in the owner’s favor as the “prevailing party” in a landlord-tenant action or proceeding. See Moore v. Beautiful Spaces (App. Div. 1 Dept. 2021), where owner was awarded attorney’s fees based on tenant’s breach of lease provisions. 

The DHCR’s Lease Rider states that legal fees can be recovered from a rent-stabilized tenant only if ordered by a judge.

Application fee limitations. New York Real Property Law (RPL) §238-a permits owners to charge a maximum of $20 to prospective residential tenants for rental application fees to cover background/credit checks, but must waive this fee if the applicant provides a recent (within 30 days) screening report. The law applies broadly but has exceptions for co-op/condo board fees and when agents are hired by tenants. The $20 application fee cap also applies to licensed brokers acting as agents for the owner, and to sublessors.

The DHCR’s Lease Rider also states that reasonable fees for a background check for a tenant applicant cannot exceed $20 per tenant. However, the DHCR’s Lease Rider also points out that fees for background checks cannot be charged to rent-stabilized tenants already in occupancy, or to the existing tenant for a background check on a prospective roommate or additional family member. 

A note on timing: The Fair Chance For Housing Act (NYC Admin. Code §8-102a, added by NYC L.L. 24/2024), which took effect on Jan. 1, 2025, and which applies to all units in NYC multiple dwellings, created a new category of exemption from rental discrimination by enacting restrictions on the use of criminal background checks. Among other things, this law provides that a landlord may not run a criminal background check at all until after having made a binding rental offer that can be revoked only based on a criminal background check conducted in accordance with the fair chance housing process set forth in the statute or based on an unrelated material omission, misrepresentation, or change in the qualifications for tenancy that were not known at the time of the conditional rental offer. 

Returned rent checks. Effective Oct. 16, 2025, New York’s Real Property Law §238-a(2-a) prohibits landlords from charging residential tenants a fee for a dishonored rent check in excess of the actual costs or fees incurred by the landlord as a result of the check being dishonored for insufficient funds. RPL §238-a(2-a) also states that a landlord may not demand a dishonored check fee unless such payment, fee, or charge is provided for in the parties’ lease or rental agreement. The new law also applies to sublessors in connection with subtenant rent payments.  

Sublet request processing fees and permitted rent increases. Tenants are permitted under Real Property Law (RPL) §226-b to request permission to sublet their apartments. The RPL provision makes no mention of fees payable to an owner for granting permission to sublet or to process a sublet request application. The DHCR has indicated that an owner can charge a reasonable fee to process a rent-stabilized tenant’s sublet request if the tenant’s lease allows for the fee and stipulates the expenses involved. 

In one scenario where a landlord sought guidance from the DHCR, a rent-stabilized tenant asked the owner for permission to sublet and his lease said that if a sublet was granted, the tenant agreed to pay the owner a fee equal to one month’s rent, for bookkeeping and other expenses. The owner asked the DHCR if this lease clause was enforceable.

In an opinion letter by Michael Rosenblatt, dated Nov. 22, 2004, the DHCR pointed out that in another case, the court permitted an owner to charge $250 as a reasonable application fee when the tenant sublet his apartment. In that case, the owner required letters of reference, a credit check, a copy of the sublease, and an interview with the proposed subtenant. The case didn’t discuss bookkeeping expenses, and here, the tenant’s lease didn’t explain what the other expenses were. So in this scenario, if the owner charged the tenant a full month’s rent as a sublet fee, it could constitute a rent overcharge. 

Rent control regulations allow an owner to apply to the DHCR for a sublet allowance of 10 percent above the tenant’s rent (CRER §2202.6). And if the owner applies for a sublet allowance, a rent-controlled tenant who sublets a furnished unit may apply to the DHCR for an appropriate rent increase. The amount of the increase, if any, that the DHCR may authorize will depend on the value and condition of the furniture. 

An owner may collect a sublet rent increase from a tenant in occupancy under a rent-stabilized renewal lease in an amount set annually by the NYC Rent Guidelines Board. If a rent-stabilized tenant sublets an apartment fully furnished, the tenant may charge an additional rent increase for the use of the furniture, in an amount not exceeding 10 percent of the legal rent (RSC §2525.6). Neither a landlord nor a tenant can demand “key money” from a proposed subtenant of a rent-regulated unit, as this would constitute a rent overcharge.

Lease transfer fee. What happens if a rent-stabilized tenant asks to transfer to a different apartment before the end of the lease and get a new lease for the apartment? The DHCR has ruled that if you grant the tenant’s request, you can charge the tenant a lease transfer fee. In North Carolina Leasing Co. (DHCR Adm. Rev. Docket No. IH210100RO (July 1999)), the owner had charged the tenant a $175 lease transfer fee. The tenant challenged this fee by filing a rent overcharge complaint with the DHCR. But the DHCR ruled that lease transfer fees aren’t rent—so charging such a fee didn’t amount to a rent overcharge.

Window guard fees. Fees for window guards, limited to $10 per guard for rent-stabilized tenants, may be collected, as detailed in DHCR Fact Sheet #25, found online at https://hcr.ny.gov/system/files/documents/2020/11/fact-sheet-25-11-2020.pdf. 

Smoke alarms, carbon monoxide detectors, and natural gas detectors. Fees for these alarms are regulated under NYC law. Generally, the owner pays for the initial installation while tenants are responsible for costs associated with maintaining these detectors. Owners are responsible for ensuring that new tenants have properly operating detectors and should check them before a tenant moves in to determine if they need replacement or repair. If a new detector is required, an owner may collect up to $25 from the new tenant toward the cost (NYC Admin. Code §27-2045). The DHCR’s Lease Rider acknowledges that these fees are collectible from rent-stabilized tenants.

Fees imposed by NYC agencies. The DHCR’s Lease Rider acknowledges that fees such as those that may be imposed by HPD may be imposed on tenants if applicable.

Fees for apartment appliances. Rent “surcharges” collectible from rent-regulated tenants for air conditioners, washing machines, dryers, and dishwashers are regulated specifically by law, rules, and with consideration to various factors, including whether the appliances were installed by the landlord or tenant, whether the landlord or tenant pays for the electricity powering the appliances, whether collection of any surcharge had been waived over time, and what current rates have been set by the DHCR. 

Collectible rent surcharges and other rules concerning air conditioners, washing machines, dryers, and dishwashers are detailed in:

• DHCR’s Operational Bulletin 84-4 (Air Conditioning Surcharges), found online at https://uxp-pd-cms-gmfqdagrdcdrd0gk.a02.azurefd.net/media/o5vdqxn2/operational-bulletin-84-4-supplement-1-annual-update-40.pdf;
• DHCR Fact Sheet #27 (Air Conditioners), found online at https://hcr.ny.gov/system/files/documents/2024/11/fact-sheet-27-11-2024.pdf; and 
• DHCR Operational Bulletin 2005-1, found online at https://hcr.ny.gov/system/files/documents/2025/02/operational-bulletin-2005-1-supplement-4.pdf.

Editor’s Note: For more information, see How to Collect Higher Monthly Surcharges for Tenant-Installed Appliances, in the Insider’s March 2025 issue.

Fees for sub-metering or other utility services. Fees for electrical sub-metering are regulated specifically for rent-regulated tenants, and are detailed in DHCR Operational Bulletin 2014-1 (Conversion from Master to Individual Metering of Electricity), found online at https://hcr.ny.gov/system/files/documents/2018/11/orao20141.pdf.

Give Tenant List of All Potential Fees Before Lease Signing

Effective June 14, 2025, the NYC Fairness in Apartment Rental Expenses (FARE) Act requires owners to provide tenants with a clear breakdown of any fees the tenant may be responsible for before a lease is signed. This disclosure, which must be itemized and detailed, is intended to make the rental process more transparent. The disclosure must be signed by the tenant prior to execution of the rental agreement, and owners are required to keep these records for at least three years to comply with the law. A copy of this disclosure must also be provided to the tenant for their records. 

Fees That Aren’t Allowed

Don’t charge extra fees for the following items or services:

Landlord’s real estate brokerage fees. Effective June 14, 2025, the FARE Act makes owners, rather than residential tenants, responsible for covering broker fees when the owner hires a real estate broker. The FARE Act requires owners who hire brokers to pay the associated fees, which tenants had previously been responsible for. 

The FARE Act also prohibits owners from requiring tenants to work with specific brokers, such as those representing both sides of a deal, a practice known as dual agency. 

Owners or brokers who don’t comply with the FARE Act face significant financial penalties. Initial violations carry fines of up to $1,000, while repeat offenses within a two-year window can result in fines of $2,000. Failing to meet the disclosure requirements is treated as a separate violation, with $500 for the first violation and not more than $1,000 for each subsequent violation occurring within a two-year period. Additionally, tenants have the legal right to sue owners in a civil action if they are improperly charged fees that violate the act.

Beyond the FARE Act, it’s illegal for owners themselves to charge tenants fees for rent-stabilized units. Neither the owner nor the owner’s employee may collect a finder’s fee or brokerage commission in connection with a rent-stabilized lease. 

Pet registration fees. The DHCR Lease Rider prohibits charging a “pet security deposit,” or proposing fees for a service animal or that are in violation of fair housing law. In an opinion letter dated Sept. 9, 2003, the DHCR also stated that the Rent Stabilization Code didn’t permit any rent increase for pets. The owner had charged the rent-stabilized tenant an annual pet registration fee of $25 for each dog or cat, and the tenant asked the DHCR if this constituted a rent overcharge. The DHCR suggested that if the tenant’s lease allowed pets, or if the tenant had kept a pet openly for more than three months so that there was a waiver of any ‘‘no-pet’’ lease clause, a pet registration fee would constitute an improper rent increase.

Use of service elevator during move-in. An owner cannot charge a fee to rent-stabilized tenants for using the elevator when they move into their apartments. The DHCR would consider such a fee to be an unlawful rent overcharge. 

In one case, where a tenant complained of a reduction in services when the owner started charging tenants a fee for their use of the building’s service elevator, the district rent administrator ruled for the tenant finding this restriction on the tenants’ use of the service elevator to be a reduction in required services. And the tenants’ leases discussed only use and notice requirements for the elevator. A fee for elevator use wasn’t mentioned [RFD 77th St., LLC: DHCR Adm. Rev. Docket No. OC410098RO, Nov. 2000].

Lobby door key, key deposit. You can’t charge rent-stabilized tenants a key deposit even if you’re careful to return the deposit when they return their keys. In one case, an owner installed new mailboxes in its building and required all tenants to deposit $10 for a mailbox key. The owner said that the deposits would be refunded when tenants moved out. A rent-stabilized tenant asked the DHCR if this was allowed. In an opinion letter by Charles Goldstein dated Oct. 10, 2003, the DHCR said no. Under DHCR policy, owners can’t charge tenants a fee for a front door building key because this was a required service. Similarly, mailbox access was a required service, and landlord can’t ask tenants to pay a deposit for mailbox keys.

Disputes over fees for additional keys are common in rent-regulated buildings, particularly with the replacement of metal keys with electronic keys or key fobs. In Matter of 150 Park, LLC v. DHCR (App. Div. 2 Dept. 2025), rent-stabilized tenants complained of a reduction in building-wide services when landlord changed the front entrance door lock from a traditional lock to a door lock mechanism that used non-duplicable keys and refused to provide a sufficient number of the new keys to tenants. Landlord also charged tenants between $50 and $250 per additional key. The DHCR ruled for tenants and ordered a rent reduction based on a reduction in required services. A court and appeals court denied landlord’s appeal of DHCR’s decision, finding that it had a rational basis.

In another case, Matter of 57 Elmhurst, LLC v. DHCR (App. Div. 2 Dept. 2025), rent-regulated tenants complained to the DHCR that the landlord failed to provide a sufficient number of non-duplicable building entry keys to certain apartments in the building after changing the entry door locks. Some tenants also were asked to sign new leases to include additional household members as a condition for receiving additional keys, and some of the tenants were asked to pay for each additional key. The DHCR ruled for the tenants, finding a reduction in building services, reducing their rents, and directing the landlord to restore required services. A court and appeals court again upheld the DHCR’s decision.

Roommate fee. You can’t charge a rent-stabilized tenant a fee for having an additional occupant in the apartment. In one case, Decatrel v. Metro Loft Management LLC (2010), a tenant sued the owner, claiming that the owner collected unlawful application and administrative fees when the tenant brought in a roommate. The court denied the owner’s motion to dismiss the case. Charging these fees posed an unlawful restriction on occupancy, in violation of the roommate law, Real Property Law §235-f. This ruling seems likely to also be more generally applicable to unregulated tenants, since the roommate law permits tenants to have additional non-tenant occupants living with them.

But note that you may be able to collect a rent increase from a rent-controlled tenant for having an additional occupant in the apartment. Section 2202.6 of the city’s Rent and Eviction Regulations (which applies to rent-controlled apartments) allows you to get a rent increase from a rent-controlled tenant if, since March 1, 1959, there has been an increase in the number of adult occupants in the apartment who aren’t members of the tenant’s immediate family.

Conditional preferential rents. Owners may set a monthly preferential rent, at a rate lower than the legal regulated rent, for rent-stabilized tenants. But conditioning the continuation of a preferential rent on “on-time rent payment” of monthly rent and terminating the preferential rent upon late payment of rent is not allowed. The DHCR will consider this a rent overcharge and will reduce the legal regulated rent to the amount of the conditional preferential rent. 

The DHCR Lease Rider also identifies some additional unlawful fees for rent-stabilized tenants concerning:

Air conditioners. Effective Nov. 21, 2022, surcharges for tenant-installed air conditioning units are prohibited if the tenant pays for the electric utility service. Fees for owner-installed air conditioner brackets also are prohibited.

Fees for damages by rent-regulated tenants. The DHCR’s Lease Rider provides that fees including but not limited to damage fees, repair fees of any kind including those incurred for removal of municipal violations, painting fees, cleaning fees. and other fees not established by or in excess of the amount allowed by the rent regulations or other municipal regulations are prohibited. The Lease Rider further states, “Please note that the inappropriateness of imposing these fees through the lease may not necessarily prevent an owner from independently seeking other relief in court for objectionable conduct or damages.” 

DHCR rent registration fees. The DHCR’s Lease Rider states that the $20 fee that must be paid by owners to the municipality for each stabilized apartment cannot be passed along as a fee to the tenant.