Property Management in New York

New York is one of the most tenant-protective states in the country, and that shapes everything about managing property here. The Housing Stability and Tenant Protection Act (HSTPA) of 2019 capped security deposits, capped late fees, and tightened eviction procedures statewide, and localities layer on their own rules — the state's largest markets are highly restrictive on short-term rentals. This guide covers licensing, deposits, landlord-tenant essentials, eviction, the short-term rental landscape, and taxes — with citations to the Real Property Law, General Obligations Law, and the NY Department of State.

Quick Reference

1. Licensing

In New York, managing or renting other people's property for a fee generally requires a real estate broker license issued by the New York Department of State (DOS), Division of Licensing Services, while managing your own property does not. Under Real Property Law (RPL) §440, "real estate broker" includes any person who, for another and for a fee, commission, or other valuable consideration, collects or offers or attempts to collect rent for the use of real estate, or negotiates leases; RPL §440-a requires the license before engaging in that business, and a salesperson can perform these tasks only under a sponsoring licensed broker. [1][2] Limited exemptions exist (e.g., certain not-for-profits or court/city-appointed managers of city-owned residential property), but they are narrow. [2]

2. Security Deposits

The HSTPA amended General Obligations Law (GOL) §7-108 effective June 14, 2019, to apply tenant-friendly deposit rules statewide (not just to rent-stabilized units): [3]

• Cap: A security deposit (plus any advance) may not exceed one month's rent. The old practice of collecting "first month, last month, and a deposit" is now prohibited. [3]
• Return deadline: Within 14 days after the tenant vacates, the landlord must return the deposit and provide an itemized statement of any amounts retained and the basis for them. [3]
• Walk-through rights:Tenants are entitled to request an inspection before move-in and a pre-move-out inspection, with an opportunity to cure conditions before they're charged. [3]
• Penalties:Failure to provide the itemized statement within 14 days can forfeit the landlord's right to retain any portion. Willful violations can expose the landlord to punitive damages up to twice the deposit. [3]

3. Landlord-Tenant Essentials

• Warranty of habitability (RPL §235-b): This is one of the strongest in the nation. Every residential lease in New York carries an implied warranty that the premises are fit for human habitation and free of conditions dangerous to life, health, or safety. It cannot be waived by lease. Breach can give tenants a rent-abatement defense in nonpayment cases. [5]
• Entry / access: New York has no statewide statute specifying landlord-entry notice. Attorney General guidance treats reasonable notice as roughly 24 hours for inspections and about a week for repairs, with no notice required in genuine emergencies or when the tenant invites entry. Verify the local standard. [4]
• Heat and hot water: Localities set specific heat and hot-water standards; check the local housing-maintenance code.
• Late fees (RPL §238-a): Under HSTPA, a late fee may be charged only after rent is 5 days late, and it may not exceed the lesser of $50 or 5% of the monthly rent. [5]
• Required disclosures: Federal lead-based paint disclosure (pre-1978). New York requires notice of sprinkler system status, security-deposit protections, and, where applicable, rent-stabilization status and any local bedbug-disclosure requirements. Verify current disclosure list. [4]

4. Eviction

New York's eviction process is tenant-protective and slowerthan most states, and self-help eviction is illegal — you must use housing court.

• Nonpayment (RPAPL §711(2)): Since HSTPA, a landlord must serve a 14-day written rent demand before starting a nonpayment proceeding. The old 3-day notice and oral demands are no longer permitted. [5]
• Holdover / lease termination: Notice periods scale with tenancy length (e.g., longer notice to terminate for tenants of longer duration), and additional protections apply.
• Rent stabilization:Under the state's Emergency Tenant Protection Act (ETPA) framework, as amended by HSTPA, localities can opt in to rent stabilization; covered units are subject to restricted rent increases and tenants are generally entitled to lease renewals, sharply limiting an owner's ability to decline renewal or raise rent. Determine a unit's regulatory status before signing anyone.
• Court process: Nonpayment and holdover cases run through housing court; warrants of eviction are executed by a marshal/sheriff, not the landlord. The process commonly takes months. [5]

5. Short-Term Rental Landscape

New York now has a statewide short-term rental registry: 2024 legislation (Ch. 672, as amended in 2025) created a registration system administered through the Department of State that applies where localities don't run their own registries, and made short-term rental stays expressly subject to state and local sales tax as of March 2025. On top of that, regulation remains heavily local, and the state's largest markets are highly restrictive — New York City effectively bans most un-hosted stays under 30 days. Verify both your registration duty and the local code before operating.

6. Taxes

• State and local sales tax expressly applies to short-term rental occupancy as of March 2025, and many localities add a county occupancy/"bed" taxon top. The host typically collects and remits, though platforms collect some taxes in some jurisdictions — verify which taxes the platform collects versus what you must file with the NY Department of Taxation and Finance.

30+ day rentals are generally not transient-occupancy-taxed. Verify current rates with the NY State Department of Taxation and Finance and your locality.

7. New York-Specific Gotchas

• Rent stabilizationcan attach to a unit and dramatically limit rent increases and non-renewal rights — check status before leasing.
• 14-day deposit return is short and strict; missing the itemized statement can forfeit deductions and trigger punitive damages.
• Late fees are cappedat the lesser of $50 or 5% and only after a 5-day grace — common out-of-state lease clauses violate this.
• STR regulation is primarily local, and the state's largest markets are highly restrictive — verify the local code before operating.
• The eviction process is slow and procedurally demanding; budget for months.

Sources

Local rules and figures are summarized as of 2026 and change frequently — verify the current rule with the primary source or a local attorney.

1. NY Real Property Law §440 — NY State Senate — Definition of "real estate broker," including collecting rent for the use of real estate for another for a fee.
2. NY Real Property Law §440-a — NY State Senate / Justia — License required to act as a real estate broker/salesperson; limited exemptions. Administered by the NY Department of State Division of Licensing Services (dos.ny.gov real estate license law).
3. NY General Obligations Law §7-108 — NY State Senate — One-month deposit cap, 14-day return with itemized statement, walk-through rights, punitive-damages exposure (as amended by HSTPA 2019).
4. NYS Attorney General Residential Tenants' Rights Guide — Entry-notice norms and required disclosures.
5. NY Real Property Law §235-b — NY State Senate — Implied warranty of habitability. The HSTPA late-fee cap (lesser of $50 or 5%, after 5-day grace) is codified at RPL §238-a and the 14-day rent demand at RPAPL §711(2); both are summarized in the NYS AG Tenants' Rights Guide.

Related reading

• Rental Types Guide: Short-, Mid-, and Long-Term
• Top 15 Property Management Tips for New Managers