New York City Limits Tenant Background Check Options

Over 750,000 people in the New York metropolitan area have a criminal record. That massive population means that the city is among the leaders in the United States for “fair chance” style legislation. Advocates often point out that records create severe barriers to jobs and housing. A landlord using a tenant background check might deny many applicants if they have a criminal record.

For several years, New York City Councilors have looked for ways to expand access to housing in the city. These efforts aim to combat homelessness and recidivism. In 2022, the Council tried but failed to pass a new law creating a “fair chance” for NYC tenants. The law would have restricted the use of a background check for real estate purposes. In 2023, however, the effort was revived—and ultimately passed.

Protests and disagreements preceded the City Council vote

In the original version of the law discussed by the Council, landlords would lose the ability to use most criminal background checks. A sex offender registry check would be the primary tool available. Further vetting could only occur in multi-family homes or where federal law applied. The proposed changes brought out landlords, real estate brokers, and others in large groups. Protests occurred on the City Council’s steps as landlords demanded they retain abilities to foster safe housing for all tenants.

Why is a rental background check so controversial?

From the pro-Fair Chance side of the argument, background checks unfairly restrict access to shelter—a fundamental human right. They maintain that the punitive effects of criminal records far outweigh the punishment the justice system handed down. Such effects restrict access to housing and may drive individuals back to crime.

From a landlord’s perspective, restricting background checks unfairly limits their ability to choose tenants. They say it makes other residents and families unsafe. Landlords insist that they must be able to consider a subject’s history in-depth to make rental decisions.

Despite all the protests from both sides, the City Council ultimately amended the law and passed it late in December 2023.

What does the new law demand of landlords?

As passed, the Fair Chance for Housing Act limits how much a landlord may consider. Sex offender registry checks remain permissible, and federal law or state requirements for vetting still surpass this law. However, landlords must abide by a lookback period. You may only consider misdemeanors that are three years old at the most. You may not consider any felony convictions older than five years.

If you deny someone housing based on their report, you must issue a written statement explaining why you made the decision. You must have a legitimate business reason to deny someone based on their criminal record. Owner-occupied properties housing two or more families remain exempt from these requirements. The law goes into effect January 1, 2025.

How this will affect landlords remains to be seen. The lookback periods may provide ample opportunity to evaluate the most pressing threats or riskiest individuals. As passed, the bill represents a roughly equal compromise between the two sides.

Prepare for this and other regulatory changes

New York landlords will not have to abandon the tenant background check. Strong advocacy for those supplying housing helped spur the changes. However, if you rent properties in NYC, you should be ready to comply with the law by 2025. Lookback periods mean you can still exercise discretion and create a safe community. However, some councilors remain dedicated to eliminating those lookbacks. More changes could come before the law goes into effect, so stay aware.