New York City Mayor Zohran Mamdani's latest housing proposal, unveiled as part of a 23-point "Rental Ripoff Report," Aims to reduce rental costs. The plan would prohibit landlords from requiring both a credit check and proof of income simultaneously, forcing them to use only one screening method. It would also shift the cost of credit checks from tenants to landlords.
Cea Weaver, director of the Mayor's Office to Protect Tenants, compared the proposal to the 2024 FARE Act, which transferred broker fees from renters to landlords. Both measures require City Council approval. Weaver has stated that current rental standards - often requiring applicants to earn 40 times the monthly rent while also paying for credit checks - disproportionately burden frequently moving renters.
Keyan Sanai, a top rental broker at Douglas Elliman, disputed the proposal's effectiveness. He noted that credit check charges are already capped at $20 and can be waived if an applicant provides a qualifying report from the previous 30 days. "Eliminating that remaining $20 charge may produce a headline, but it will not meaningfully improve housing affordability," Sanai said.
Sanai argued the substantive impact comes from restricting landlords' ability to review both credit history and income together. "That is not merely a change in who pays a nominal screening cost. It is a restriction on basic financial underwriting," He said.
He referenced a 2019 security deposit law that limited deposits to one month's rent and prohibited advance final-month collection. According to Sanai, this forced applicants with assets but irregular income or nontraditional finances toward third-party guarantor companies, which charge non-refundable fees amounting to roughly one month's rent.
Sanai predicted landlords will respond to tighter screening restrictions by requiring more guarantors. He stated that while applicants with wealthy family members satisfying an 80-times-rent requirement may succeed, others "may be forced to purchase an institutional guaranty that can cost approximately one month's rent and is never returned."
Sanai criticized Mamdani's background, saying: "For those of us who did not grow up with wealthy parents who owned multiple residences, including a two million dollar condo in Chelsea, an institutional guarantor would be required, which is a one month nonrefundable charge."
Sanai drew parallels to the FARE Act, which prohibited tenant-side broker commissions. By June 2026, Manhattan's median monthly rent reached $5,295 according to Corcoran, up approximately 8% annually, while active listings fell to 5,260, down 16% from June 2025.
Sanai acknowledged StreetEasy analysis showing the FARE Act directly caused only about 1.1% of rent increases, with housing shortage driving most growth. "But it does demonstrate that owners do not simply absorb new costs indefinitely. At least some portion is ultimately reflected in rents, reduced services, stricter underwriting or lower housing supply," He said.
He predicted similar consequences from the new proposal, stating: "This newest proposal would raise the barrier to entry even further, especially for applicants without wealthy family members available to guarantee their leases."
On the proposal's ultimate impact, Sanai concluded: "This will screw people just as bad as the FARE Act, to be honest."