New York Room Rental Agreement
Over the last several years, the concept of “house hacking” — renting out a room in your home for some extra income — has become popular. Gone are the days of needing a massive apartment building to become a landlord. Now, all you need is a spare bedroom.
Once you decide to rent a room, you’ll want to create a room rental agreement. With the proper agreement, New York tenants can sign and review all applicable laws while you cover your bases. If this is a path you’re interested in, we’ve created this guide to give New York landlords and house hackers a leg-up when putting their room on the market.
New York Room Rental Laws
Just because you’re renting out a room in your home doesn’t mean you don’t have to follow the standard landlord-tenant laws. Landlord-tenant laws vary quite a bit from one state to the next. Their purpose is the same: clearly defining the relationship between landlords and tenants when renting property.
Types of Room Rental Agreements
As you put together your New York room rental agreement, landlords will want to carefully consider what kind of lease you want your tenants to sign.
- Verbal agreement: While some people prefer the informality of a simple verbal agreement, landlords should create a written lease to avoid misunderstandings or miscommunication.
- Fixed-term lease: Many New York landlords prefer a fixed-term lease because it sets a definitive term for the rental arrangement and establishes stability.
- Month-to-month lease: A month-to-month lease creates a tenancy-at-will, meaning the agreement has no set end date. Landlords or tenants can terminate it at any time by giving proper notice. However, landlords must have “good cause” to terminate any tenancy, so make sure the reason for lease termination fits within their criteria.
Room Rental Agreement New York
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Required Landlord Disclosures
When tenants sign a new lease, New York state law requires landlords to reveal certain information to tenants through mandatory disclosures. These disclosures are:
- Lead-based paint: Federal law requires landlords to inform tenants about the presence or knowledge of lead-based paint or lead-based paint hazards on the property for all units built before 1978.
- Security deposit receipt: In New York, landlords must give tenants a security deposit receipt, including the name and address of the bank holding the funds (NY GOB Code § 7-103(2)).
- Sprinklers: New York landlords must inform tenants if the unit has a sprinkler system and, if so, the date of the last inspection and maintenance (NY RPP § 231-A).
- Reasonable modifications and accommodations: Landlords must let tenants know that they have 30 days after moving in to request reasonable modifications or accommodations for disabilities (NY EXC Code § 170-d).
- Rent stabilization: Tenants must be informed about renting a rent-stabilized unit (New York City Administrative Code § 26-512).
- Bed bugs: Landlords in New York City must tell tenants about the history of bed bugs in the building and unit over the previous 12 months (New York City Administrative Code § 27-2018.1).
- Certificate of occupancy: Landlords must post a valid certificate of occupancy on the property to prove to tenants that the unit adheres to building codes and is fit for legal occupation. This requirement applies to all buildings with three or fewer units (NY RPP Code § 235-bb).
Note: TurboTenant includes these disclosures in each lease agreement.
Security Deposits
Maximum security deposit: New York landlords can charge up to one month’s rent for security deposits (NY GOB Code § 7-108(1a)).
Security deposit receipt: Landlords must give tenants a receipt when collecting a security deposit that lists the deposit amount and where it’s held (NY GOB Code § 7-103(2)).
Deduction tracking: Landlords can legally withhold funds from the security deposit to make repairs beyond normal wear and tear. However, if they do, they must provide the tenant with a list of itemized deductions (NY GOL Code § 7-108(1b)).
Security deposit return: Security deposits should be returned within 14 days of move-out (NY GOB Code § 7-108(1e)).
Pet deposits: New York landlords can charge a pet deposit, but the combined deposit total cannot exceed one month’s rent.
Rent Payment Regulations
Late rent fees: State law caps late fees in New York at $50 or 5% of the monthly rent, whichever is less (NY RPP Code § 238-A(2)).
Right to withhold rent: Tenants can withhold rent payments when the landlord fails to maintain the unit properly or make necessary repairs. The tenant can pay for the repair and deduct it from their next rent payment (NY RPP Code § 235-A(1)).
Grace period: New York law establishes a 5-day grace period for missed rent (NY RPP Code § 238-A(2)).
Pet rent: Landlords in New York can charge a monthly fee for pets as long as the lease includes that detail.
Rent Payment Increase Rules
Rent payment increase frequency: Rent can be increased at any time in a month-to-month lease by providing proper notice and only once per lease renewal for fixed-term leases.
Rent payment increase maximum: Landlords do not have a cap on rent increases for non-rent-controlled or stabilized units. However, in New York City (and some other areas of the state), rent control limits the amount landlords can increase rent. Check your local area before making any changes to the rent payment to avoid potential issues.
Rent control/stabilization: Rent control and stabilization exist in New York City and other areas of the state. Rent control limits the amount rent can be increased, which currently sits between 2.75% – 3.2% of the current rent, depending on the lease term.
Room Rental Agreement Breaches
Failure to pay: After the grace period established by New York law (NY RP Acts § 711(2)), a landlord can send a 14-day Notice to Pay or Quit.
Lease violations: When a tenant violates the lease, the landlord may deliver a 10-day Notice to Cure. If the tenant doesn’t cure the breach, the landlord can terminate the tenancy, which gives the tenant 30 days to move out (NY RO Acts §§ 711, 753(4)).
Lease abandonment: Breaking a lease early and without cause could result in the tenant owing the entire rent amount left on the lease term or other financial penalties.
Self-help evictions: Landlords are not allowed to evict a tenant on their own, as self-help evictions are illegal. They must follow the proper eviction process (NY RPP Code §§ 235 and 853).
Ending a Room Rental Agreement
Terminating a room rental agreement in New York is similar to ending a lease for a freestanding unit, which heavily depends on whether the tenant has signed a fixed-term lease or a month-to-month lease.
New York law does include a carve-out for room rentals, typically considering room renters “licensees” instead of “tenants.” Even though they are strongly encouraged, written leases are not required for room rentals.
Month-to-month: In New York, landlords must give at least one month’s notice and have “good cause” to terminate a month-to-month lease.
Fixed-term: Fixed-term leases end on the last day of the term listed in the New York room rental agreement unless the landlord or tenant meets a legally qualifying condition that allows them to terminate the lease early.
Room abandonment: Tenants who end a lease early without meeting a qualifying condition could be liable for the rent remaining on the lease or other financial penalties.
Tenant’s right to terminate: New York tenants may end a fixed-term lease early and without penalty if they meet one of the following conditions:
- Entering into active military duty
- Unsafe or uninhabitable living conditions
- Landlord harassment or landlord retaliation
- The tenant is the victim of domestic abuse or violence
- Using an early termination clause in the lease
Landlord Room Access Laws
Immediate access: New York landlords can immediately enter a tenant’s unit in an emergency.
Landlord harassment: If a landlord repeatedly enters the tenant’s unit or room without cause, they could be subject to claims of landlord harassment. In these cases, the tenant could recover legal damages or cancel the lease agreement (NY RPP Code § 235-D).
Advance notice: No state laws indicate how or when a landlord can enter the tenant’s unit.
Agreement Renewal/Termination
Required renewals: Landlords are not obligated to renew the lease for non-rent-controlled units. However, if the unit is rent-regulated, the landlord may be required to allow the tenant to renew (NY GOB Code § 5-905).
Required notice: If the tenant has been there for one year, the landlord must give the tenant 30 days’ notice that they do not intend to renew the lease. For tenants that have been there for between 1 and 2 years, the notice period is 60 days. For tenancies over 2 years, the notice period extends to 90 days (Housing Stability & Tenant Protection Act of 2019)
Month-to-month considerations: Landlords or tenants can terminate month-to-month leases by providing the other party with at least one month’s written notice. Landlords must have “good cause.”
Room Rental Agreement New York FAQs
What to include in a New York room rental agreement?
For a room rental agreement in New York to be considered legally valid, it should contain the names of all parties, the address of the property, rent and security deposit requirements, and any additional information that the tenant should be aware of.
How do I legally rent out a room?
To legally rent out a room in New York, you must obey all landlord-tenant laws, apply for the necessary permits, meet all building and housing codes, and provide the tenant with a New York room rental agreement.
How to make a New York room rental agreement?
A room rental agreement template that New York landlords can use can be created from scratch or built around a lease agreement template provided by TurboTenant in printable PDF format.
