New York Senate Bill S03845

New York 2025-2026 Regular Session

• Introduced: 1/30/25
• Refer: 1/30/25

Caption

Prohibits residential landlords from charging tenants a fee for a dishonored rent check in excess of the actual costs or fees incurred by such landlord as a result thereof, provided such dishonored check fee was included in the initial lease.

Summary

Bill S03845 seeks to amend the real property law and general obligations law in New York to limit the fees that residential landlords can charge tenants for dishonored rent checks. Specifically, it prohibits landlords from demanding any payment or fee that exceeds the actual costs incurred due to the dishonored check, unless such fees are explicitly stated in the lease agreement. The bill aims to protect tenants from excessive charges that may arise from insufficient funds in their bank accounts when paying rent. The bill introduces a new subdivision to Section 238-a of the real property law, which defines a 'dishonored check' and outlines the conditions under which landlords may charge fees. It also amends Section 5-328 of the general obligations law to ensure that the fees charged for dishonored checks are reasonable and justifiable. The provisions of the bill do not apply to shareholders of cooperative housing corporations, although they do apply to tenants and subtenants of such shareholders. This legislation is intended to create a fairer rental environment by preventing landlords from imposing exorbitant fees on tenants for situations that may be beyond their control. By ensuring that any fees charged are limited to actual costs, the bill aims to alleviate some financial burdens on tenants, particularly those who may be struggling financially. The sentiment surrounding the bill appears to be supportive among tenant advocacy groups, who argue that it is a necessary step towards protecting renters' rights. However, some landlords and property management companies may view it as an additional restriction on their ability to manage rental agreements and enforce payment terms. Overall, the discussions indicate a recognition of the need for balance between landlord rights and tenant protections.

Impact

If enacted, Bill S03845 will significantly alter the landscape of landlord-tenant relationships in New York by imposing stricter regulations on the fees that landlords can charge for dishonored checks. This change will likely lead to a decrease in the financial penalties that tenants face when they encounter issues with their bank accounts. It will also require landlords to be more transparent in their lease agreements regarding any potential fees associated with dishonored checks, thereby fostering clearer communication between landlords and tenants. The bill aims to reduce the potential for disputes over excessive fees and promote a more equitable rental market.

Sentiment

The general sentiment around Bill S03845 is largely positive among tenant advocacy groups, who see it as a necessary reform to protect renters from unfair financial penalties. There is a recognition of the need for tenant protections, especially in the context of rising housing costs. However, there are concerns among some landlords regarding the potential limitations on their ability to enforce payment terms and manage their properties effectively. Overall, the discussions reflect a desire for fairness in the rental market, though opinions on the bill's implications vary.

Contention

Notable points of contention regarding Bill S03845 include the balance between tenant protections and landlord rights. Tenant advocates argue that the bill is essential for preventing exploitative practices by landlords, while some landlords express concern that limiting fees could hinder their ability to recover costs associated with dishonored checks. Additionally, the exclusion of cooperative housing shareholders from the bill's provisions has raised questions about fairness and consistency in the application of the law. These differing perspectives highlight the ongoing debate over how best to regulate the rental market in New York.