Payment of rent & Sec, Dep. by credit card, etc.
Posted: Mon Aug 16, 2021 4:16 pmThis question has been raised on the forum a few times (search for "credit card," "online," "web site," "electronic" or "legal tender." The following is new (we think).
A person asked if a landlord can require a first month's rent and security deposit to be paid by credit card? Usually credit cards have a 2.5% or 3% surcharge passed on to the user, in this case a tenant.
For rents floating around $3,000, that could mean a surcharge of $90.00 (per month).
The extra charge violates NYS General Obligations Law section 7-108 as the total security deposit payment would then exceed one month's rent.
Also look at NYS Real Property Law section 235-g(1) that prohibits landlords from requiring electronic payment.
The text of that provision reads:
Any person wishing to discuss or add to this, please do so on a new thread, not this thread. This is for reference only.
A person asked if a landlord can require a first month's rent and security deposit to be paid by credit card? Usually credit cards have a 2.5% or 3% surcharge passed on to the user, in this case a tenant.
For rents floating around $3,000, that could mean a surcharge of $90.00 (per month).
The extra charge violates NYS General Obligations Law section 7-108 as the total security deposit payment would then exceed one month's rent.
Also look at NYS Real Property Law section 235-g(1) that prohibits landlords from requiring electronic payment.
The text of that provision reads:
1. A landlord shall not require a lessee or tenant to use an electronic billing and/or payment system as the only method for the payment of rent. A landlord shall not assess any fee or other charge for a lessee or tenant that chooses not to use an electronic billing and/or payment system.
2. Any agreement by a lessee or tenant of a dwelling waiving or modifying his or her rights as set forth in this section shall be void as contrary to public policy.
Any person wishing to discuss or add to this, please do so on a new thread, not this thread. This is for reference only.