Bill > S03845

This bill prohibits residential landlords from charging tenants excessive fees for dishonored rent checks by establishing clear guidelines for such charges. Specifically, landlords can only charge a fee for a bounced rent check if the fee was initially included in the lease agreement, and the amount cannot exceed the actual costs incurred by the landlord or $20, whichever is greater. If the landlord wants to charge more than $20, they must provide evidence documenting the specific costs associated with processing the returned check. The bill applies to most residential rental situations, though it excludes shareholders of cooperative housing corporations (while still applying to their tenants or subtenants). The legislation amends both the Real Property Law and the General Obligations Law to standardize and limit these fees, protecting tenants from potentially arbitrary or punitive charges when a rent payment check is returned due to insufficient funds. By requiring transparency and setting a maximum fee, the bill aims to create a more fair and predictable process for handling dishonored rent checks.

Justice

https://www.nysenate.gov/legislation/bills/2025/S3845