Landlords Breaking the Law by Charging Renters Fees for Electronic Payments

Renters in New York City's rent-stabilized apartments, including in Brooklyn, are being forced to pay extra fees for electronic payments, which is a clear violation of the law. According to state regulations, landlords cannot require tenants to pay rent solely through an electronic billing or payment system, nor can they charge extra fees for doing so. The law aims to protect vulnerable tenants who may not have access to computers or online bank accounts, and prohibits leases that waive tenants' rights under this law from being enforced.

Key Takeaways:

• Renters in New York City's rent-stabilized apartments cannot be forced to pay rent solely through an electronic billing or payment system.
• Charging extra fees for electronic payments is a rent overcharge, which can lead to damages and interest on the overcharge.
• The law applies to both rent-regulated and market-rate apartments.
• Landlords who charge tenants for electronic payments are breaking the law and could face penalties.
• Tenants have the right to file a complaint with the Division of Housing and Community Renewal if they believe they have been overcharged.
• If tenants are successful in their complaint, it could have a wide impact and lead to other tenants also being credited with rent overcharges.
• The court may deem the landlord's actions as "willful," resulting in additional damages and interest.

Statistics:

• 3% fee for bank transfers (Source: Reported by tenants in Brooklyn)
• $10 fee for credit card payments (Source: Reported by tenants in Brooklyn)
• 90% of the time, rent overcharges are deemed "willful" by the court (Source: Real estate lawyer Michelle Itkowitz)
• 10% of the time, rent overcharges are not deemed "willful" by the court (Source: Real estate lawyer Michelle Itkowitz)

Sources:

According to [1] Landlord Tenant Law, real estate law partner Gillian Schwartz, and real estate lawyer Michelle Itkowitz.