Q: Does the law prohibit a landlord of a rent stabilized NYC building to accept one year payment in advance plus security
from a tenant who otherwise would be rejected because of insufficient credit?
A: Prepayment of rent is considered to be an additional security deposit that is prohibited by the Housing Stability and Tenant Protection Act of 2019. So a landlord cannot accept one-year prepayment of rent.
Steven Warren Smollens agrees with this answer
A: Prepayment of rent is prohibited for both a rent-stabilized and market apartment. This would be considered a security deposit, which is limited to one month. The penalty would be twice the amount you collect. Ask your tenant to get a lease guaranty with a company that provides it.
Steven Warren Smollens agrees with this answer
A:
Dear Manhattan Landlord:
No. On its way to better situations for tenants, New York State Housing Law created an unintended blockade for tenants who cannot fulfill most rental applications' minimum income benchmarks. You cannot help out your prospective tenant by taking the entire year of rent in advance.
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