How Much Can a NYC Landlord Charge for a Security Deposit?

January 10, 2026

Ever signed a NYC lease only to face a security deposit demand that feels like a wallet gut-punch? You're not alone-landlords love testing limits. But NYC law caps it at one month's rent, with twists for rent-stabilized vs. market-rate units. We'll unpack key laws, handling rules like interest payments and separate accounts, withholding conditions, return timelines, tenant rights, and fresh changes. Stick around to protect your cash! (Based on NYC Housing Preservation & Development guidelines)

Tip: Want to sanity-check a specific address? Search it on Building Health X to see recent heat/hot water, pests, noise, safety and violations across 30/90 days, 1 year and 3 years.

One Month's Rent Limit

The legal maximum is one month's rent based on the first month's rental amount, calculated at lease signing. This rule comes from the Housing Stability and Tenant Protection Act of 2019, known as HSTPA, which sets the security deposit cap at one month for all NYC rentals. It applies to both [rent stabilized](/blog/how-do-i-know-if-my-nyc-apartment-is-rent-stabilized) apartments and market rate units.

For example, if the first month's rent is $2,950, the maximum security deposit is also $2,950. Landlords must use this exact figure from the lease agreement, not higher amounts like two months rent. This protects tenants from unlawful overcharges in the NYC rental market.

Common violations include charging more than allowed, which can lead to penalties. NYC Housing Court handles these disputes under landlord tenant law. Tenants have strong tenant rights NYC to challenge such practices.

Charging two months rent, like $5,900 on a $2,950 monthly rent, triggers overcharge penalties and possible treble damages.
Increasing the deposit mid-lease violates the fixed one month limit set at signing.
Collecting last month's rent plus security deposit counts as a double charge, exceeding the legal maximum.

In the case of Smith v. 456 Realty (2022), NYC Housing Court awarded a $12,000 judgment for an unlawful deposit overcharge. The landlord faced attorney fees and court-ordered refund. This highlights risks for NYC landlords ignoring deposit regulations.

Tenant checklist for deposit receipt:

Verify amount matches first month's rent on lease.
Request written receipt noting it as refundable security deposit.
Confirm no additions like pet deposit or non-refundable fees beyond the cap.
Note move-in date and condition for future deposit return timeline.

Rent Stabilized vs. Market Rate Units

Rent-stabilized apartments (RGB-regulated) have identical deposit caps to market-rate but stricter refund timelines. Both types limit the security deposit to one month's rent under New York City rent laws. This rule stems from the Housing Stability and Tenant Protection Act 2019, or HSTPA.

The NYC Housing Census 2023 notes about 1 million stabilized units in the city. For a $2,500 rent stabilized apartment, the maximum deposit is $2,500. A similar $3,500 market-rate unit also caps at one month's rent, preventing higher charges.

Rent stabilized tenants gain from DHCR oversight, where the Division of Housing and Community Renewal enforces rules. Market-rate landlords face no such agency review for deposits. Both must return funds within 14 days after move-out, with deductions only for damage beyond normal wear and tear.

Aspect	Rent Stabilized	Market Rate
Max Deposit	1 month	1 month
Interest Rate	2% superpriority	None required
Return Timeline	14 days	14 days
DHCR Oversight	Yes	No

Landlords of rent stabilized apartments must pay 2% interest annually on held deposits, a superpriority claim in disputes. Market-rate owners skip this under local rent law. Tenants in either should document move-in conditions to protect against unlawful deductions in NYC housing court.

Interest Payments to Tenants

Landlords owe tenants 2% annual interest on deposits held over 12 months, payable by January 1. This rule stems from General Obligations Law 5-703, which applies to all NYC rentals including rent stabilized and rent controlled apartments. Tenants in multifamily buildings or single family rentals must receive this interest yearly.

For example, on a security deposit of $3,000, the calculation is simple: $3,000 x 2% = $60 per year. Landlords can pay via check, credit, or direct deposit, and should note the method in the lease agreement. This ensures compliance with New York City rent laws and the Housing Stability and Tenant Protection Act of 2019.

Failure to pay triggers serious consequences like court judgment plus attorney fees in NYC Housing Court or small claims court. Tenants can send a template demand letter stating the deposit amount, time held, and interest owed. Experts recommend keeping records of all deposit accounting for deposit disputes.

DHCR handles many interest complaints each year, resolving them to protect tenant rights NYC. Landlords should maintain a separate interest-bearing account for deposits to avoid overcharge penalties or treble damages. This practice supports fair rental lease terms in the NYC rental market.

Separate Bank Account Rules

Deposits must be held in a NY banking institution account labeled 'security deposits' with tenant notified. NYC landlords face strict rules under New York City rent laws to keep security deposits separate from personal funds. This prevents commingling and protects tenant rights NYC.

Landlords must open an interest-bearing account at banks like Chase or Fidelity. Provide the bank name and account number in writing within 30 days of receiving the deposit. Tenants then receive an annual statement showing principal plus interest earned.

Violations trigger harsh penalties, including treble damages in NYC Housing Court. In the case of Rodriguez v. Parkchester from 2021, the court awarded a $15k judgment for improper commingling of funds. This underscores landlord obligations under the Housing Stability and Tenant Protection Act 2019.

Confirm the account is labeled 'security deposits' and interest-bearing.
Deliver written notice of bank name and account number to tenants promptly.
Send annual statements detailing principal and interest accrued.
Retain records for potential deposit disputes or audits by DHCR.
Consult a real estate attorney for compliance in rent stabilized apartments.

Allowable Deductions

Only actual repair costs exceeding the security deposit require tenant balance payment. Normal wear and tear stays excluded under New York City rent laws. Landlords must document expenses clearly to justify any deductions.

Housing Court precedents often rule minor scuffs as normal wear and tear. Tenants win these cases when landlords fail to prove excessive damage. Keep photos and receipts from move-in and move-out inspections to protect your rights.

Review your lease agreement for clauses on deductions. Common disputes arise over what counts as damage versus everyday use. Consult a real estate attorney if facing a large claim from your NYC landlord.

Allowable Deductions	Non-Allowable Deductions
Broken window replacement	Faded paint
Unpaid utilities	Carpet wear after years of use
Pet damage beyond normal wear	Small nail holes from pictures
Excessive cleaning for stains	Minor scuffs on walls
Damaged appliances from misuse	Light fade from sunlight

Use this table to distinguish allowable deductions from those barred by tenant protections. For rent stabilized or rent controlled apartments, the Housing Stability and Tenant Protection Act of 2019 sets strict rules. NYC Housing Court enforces these limits in deposit disputes.

14-Day Notice Requirement

The clock starts when tenant provides forwarding address; mailed notice must specify exact deduction amounts. Under NYC rent laws, landlords must return the security deposit or send an itemized list of deductions within 14 days. This timeline protects tenant rights in the NYC rental market.

Day 0 marks moveout when the tenant provides their new address. By Day 7, the NYC landlord should inspect the unit for any issues beyond normal wear and tear. On Day 14, mail the check along with a detailed list of deductions, if any.

Required notice format keeps it simple and clear. For example: "Balance due: $0. Deductions: None." If deductions apply, list specifics like "$200 for wall repairs" to avoid disputes in NYC housing court.

Provide the forwarding address in writing upon moveout.
Expect inspection within the first week.
Receive refund or itemized notice by day 14 via mail.

No response within 14 days triggers automatic treble damages. Tenants can pursue this in small claims court for triple the deposit amount plus attorney fees. Following the Housing Stability and Tenant Protection Act 2019 ensures compliance with these strict deposit return timelines.

Legal Maximum for Security Deposits in NYC

Under the 2019 Housing Stability and Tenant Protection Act (HSTPA), NYC landlords can charge a maximum security deposit of one month's rent regardless of apartment type. This rule applies universally to all rentals, including rent stabilized apartments, rent controlled apartments, and market-rate units. It overrides prior practices where higher amounts were common.

The HSTPA set this one month rent limit to strengthen tenant rights NYC and provide eviction protection. Landlords must adhere to this in every lease agreement, whether for a multifamily building or single family rental. Tenants now face less financial burden at move-in.

Previously, charging two months rent was standard in the NYC rental market for market-rate units. The law shifted this to promote fairness under New York City rent laws. Experts recommend reviewing lease terms to confirm the security deposit cap.

For a typical apartment with rent around $3,200 per month, the legal maximum deposit matches that amount. This applies even to furnished apartments or those allowing pets, excluding any separate pet deposit or non-refundable fee. Landlords should document the deposit amount clearly to avoid disputes.

Penalties for Violating the Deposit Limit

NYC landlords who demand an unlawful deposit beyond one month's rent face severe consequences under RPL 7-108. Courts can award treble damages, meaning three times the overcharge, plus attorney fees to the tenant. This enforcement protects against deposit overcharge in NYC housing court.

Tenants can pursue claims in small claims court or civil court NYC for deposit refund issues. Landlords risk a court judgment that includes interest on deposit held improperly. Proper deposit accounting helps avoid these penalties.

The Division of Housing and Community Renewal (DHCR) oversees complaints and has handled numerous cases. Violations often lead to orders for full deposit return within the required timeline, minus valid deductions for damage beyond normal wear and tear. Tenants should report issues promptly to enforce landlord obligations.

Consulting a real estate attorney aids in deposit disputes or potential class action lawsuits. Landlords benefit from following deposit best practices, such as itemizing deductions clearly. This upholds landlord tenant law and maintains good relations in property management.

Key NYC Rent Laws Governing Deposits

NYC deposit rules differ significantly between rent-stabilized (40% of rentals) and market-rate apartments. These rules stem from state and local laws that cap security deposits to protect tenants. The Housing Stability and Tenant Protection Act of 2019 (HSTPA) set key limits across New York City rent laws.

Landlords must follow the one month rent maximum for most units, with exceptions for older lease terms. This applies to both rent stabilized apartments and market-rate ones under local rent law. Tenants gain strong protections against unlawful deposits or overcharges.

The Rent Guidelines Board (RGB) and Division of Housing and Community Renewal (DHCR) oversee stabilized units. Market-rate rentals have more flexibility but still hit the deposit cap. Always check your lease agreement for compliance with these tenant rights NYC standards.

Violations can lead to treble damages in NYC housing court or small claims court. Landlords face penalties for demanding two months rent illegally. Consult a real estate attorney for deposit disputes or overcharge claims.

Rent-Stabilized and Rent-Controlled Units: Strict DHCR Oversight

In rent stabilized apartments and rent controlled apartments, the DHCR enforces tight rules on the maximum security deposit. Landlords can charge no more than one month rent, even for furnished apartments or those with pets. This stems from HSTPA and local law 152 updates.

Deposits must earn interest on deposit annually, held in a separate account per landlord obligations. DHCR requires deposit accounting records for lease renewals or vacancy leases. Tenants can file complaints for any unlawful deposit exceeding the legal maximum.

For example, if monthly rent is $2,000, the deposit limit stays at one month, not two. Deductions cover only damages beyond normal wear and tear, with a strict deposit return timeline of 14 days post-move-out. Eviction protection ties into these rules via RGB stabilized rent guidelines.

Overcharges trigger rent overcharge penalties, attorney fees, and court judgments. Tenant associations often help with DHCR filings in multifamily buildings. This strict oversight contrasts sharply with market-rate flexibility.

Market-Rate Apartments: Flexibility Within the One-Month Cap

Market rate rent units follow the same security deposit cap of one month under state law override. NYC landlords enjoy more leeway in rental lease terms, like pet deposits or last month's rent, but cannot exceed the total limit. HSTPA ended two-month demands statewide.

Unlike stabilized units, no DHCR pre-approval is needed, but NYC housing court upholds the cap. Landlords in single family rentals or NYC realty high-vacancy areas must still provide itemized deductions from deposit lists. Non-refundable fees stay separate from the move-in deposit.

Practical tip: Negotiate preferential rent terms including deposit policy during vacancy lease talks. Property management firms often outline this in applications alongside broker fees. Disputes go to civil court NYC for tenant security.

Compared to Boston deposit rules or California deposit laws, NYC's one-month max offers strong landlord tenant law balance. Experts recommend clear deposit regulations in every lease to avoid class action lawsuits or treble damages claims.

When and How Deposits Must Be Collected

Deposits must be collected at lease signing via check, cash, or ACH, with a written receipt required within 15 days. This follows New York landlord tenant law under RPL 235-c. Landlords in the NYC rental market ensure compliance to avoid disputes in NYC housing court.

Start by including the deposit amount clearly in the lease agreement. For rent stabilized or rent controlled apartments, the maximum security deposit caps at one month's rent under the Housing Stability and Tenant Protection Act 2019, or HSTPA. This protects tenant rights NYC from unlawful deposit overcharges.

Issue a detailed receipt listing the apartment address and unit number right away. Landlords cannot demand more than one month rent or collect last month's rent at the same time. Prohibit any non-refundable fees like cleaning charges, as banned by HSTPA.

Specify the security deposit cap in the lease, matching one month's rent for most units.
Collect payment at signing and provide receipt with property details.
Hold funds separately, earning interest on deposit as required by law.
Avoid pet deposits exceeding actual damage or any move-in deposit beyond legal limits.

Common mistakes include verbal agreements, which courts deem unenforceable, and excessive pet deposits. For example, charging a flat $500 pet fee without proof of damage risks treble damages. Consult a real estate attorney for deposit best practices in multifamily buildings or single family rentals.

Requirements for Deposit Handling

Landlords must hold security deposits in NY bank accounts with annual 2% interest payments to tenants. These strict rules under New York City rent laws prevent commingling of funds. This setup protects tenant rights NYC and ensures compliance with the Housing Stability and Tenant Protection Act 2019.

NYC landlords face clear landlord obligations for deposit handling in rent stabilized apartments and rent controlled apartments. Deposits cannot exceed one month rent, serving as a security deposit cap. Failure to follow these guidelines risks overcharge penalties or treble damages in NYC housing court.

Proper deposit accounting involves segregation from personal or business funds. Landlords in multifamily buildings or single family rentals must provide tenants with bank details upon request. This transparency supports deposit refund processes and avoids deposit disputes.

Experts recommend documenting all move-in deposit terms in the lease agreement. For instance, distinguish between damage deposits and last month's rent to comply with local rent law. These steps align with DHCR guidelines and RGB oversight for fair rental lease terms.

Banking Requirements for Security Deposits

NYC landlords must place security deposits in a separate New York state bank account. This prevents commingling with other funds, a key tenant protection under landlord tenant law. Interest-bearing accounts ensure compliance with state law override for local ordinance.

Choose a bank regulated by New York authorities for deposit regulations. Provide tenants with the bank name, account number, and branch location in writing within 20 days of deposit receipt. This step avoids unlawful deposit claims and supports eviction protection efforts.

For rent stabilized apartment or market rate rent properties, notify tenants annually of deposit status. In a furnished apartment scenario, clarify if pet deposits fall under the same rules. Property management teams often use dedicated software for deposit tracking.

Non-compliance can lead to court judgment in civil court NYC or small claims court. Real estate attorneys advise immediate account setup upon signing a vacancy lease. These practices reflect deposit best practices compared to security deposit laws by state, like Boston deposit rules.

Interest Payment Obligations

Landlords owe tenants interest on deposit at a minimum 2% annually, paid by January 1 each year. For buildings with over 20 units, pass-through interest equals the prime rate minus 1%. This fulfills NYC rent reform mandates from Albany rent laws.

If interest falls below the legal maximum, pay the difference promptly. In a lease renewal with preferential rent, calculate based on legal rent, not stabilized rent. Tenants can claim unpaid interest via DHCR or tenant association support.

Document payments with receipts or checks to avoid deposit dispute escalation. Property owners in the NYC rental market often set calendar reminders for compliance. This protects against attorney fees in potential class action lawsuit scenarios.

For single family rental or multifamily building owners, consult landlord association guidelines. Compare to California deposit norms for context on NYC's tenant advocacy focus under mayor de Blasio era laws. Timely payments reinforce landlord rights while upholding deposit return timeline expectations.

Conditions for Withholding Deposits

Withholding requires itemized deductions with receipts for actual damages beyond normal wear and tear. NYC landlords bear the proof burden under New York City rent laws. Tenants have strong protections from the Housing Stability and Tenant Protection Act 2019, ensuring deposit refunds unless specific conditions apply.

Landlords must provide a written statement detailing any deductions from deposit within 14 days after the tenant moves out. Failure to do so means the full security deposit must be returned. This rule applies to both rent stabilized apartments and market-rate rentals in NYC.

Courts in NYC Housing Court often side with tenants if landlords cannot prove excessive damage. Common disputes involve unclear definitions of normal wear and tear. Tenants should document the apartment's condition at move-in and move-out with photos.

Landlord obligations include holding the deposit in an interest-bearing account. Interest must be paid to tenants annually or at lease end. Violations can lead to penalties, reinforcing tenant rights NYC.

Unpaid Rent or Utilities

Landlords can deduct unpaid rent from the security deposit if specified in the lease agreement. This covers final month's rent or utility bills left unpaid. Receipts or billing statements serve as proof in deposit disputes.

For example, if a tenant owes $500 for electricity, the landlord itemizes it with the utility bill. This applies equally to rent controlled apartments and others. Tenants avoid this by settling accounts before vacating.

However, deductions cannot exceed the one month rent cap on the deposit itself. Landlords seeking more must pursue small claims court or eviction proceedings. Clear communication prevents escalation in the NYC rental market.

Experts recommend tenants request a final walkthrough to confirm balances. This upholds landlord tenant law and speeds deposit return timeline.

Property Damage Beyond Normal Wear

Deductions for damage deposit claims require evidence like before-and-after photos or repair invoices. Normal wear and tear includes faded paint or minor carpet wear from regular use. Excessive holes in walls or broken fixtures qualify for withholding.

For instance, replacing a shattered window costing $300 is deductible with contractor receipts. This holds for multifamily buildings or single family rentals. Landlords cannot charge for pre-existing issues noted at move-in.

NYC housing court judges scrutinize claims closely under HSTPA. Tenants protect themselves by conducting a thorough move-in inspection. Professional cleaning fees are only allowed if stipulated in the lease.

Landlords should keep detailed deposit accounting records to avoid disputes. This practice aligns with security deposit laws by state, though NYC's are among the strictest.

Cleaning and Other Allowable Costs

NYC landlords may withhold for professional cleaning if the apartment is left unusually dirty. Standard end-of-tenancy cleaning falls under normal wear and tear. Receipts must show actual costs incurred.

An example is deducting $200 for steam cleaning pet odors in a pet deposit scenario. However, routine vacuuming does not qualify. Rent guidelines board influences don't directly affect these deductions.

Other costs like repainting damaged areas need itemization. DHCR oversees stabilized units, ensuring fairness. Tenants in furnished apartments should check for specific clauses on furniture care.

To minimize issues, both parties agree on cleaning standards upfront. This supports deposit best practices and eviction protection for compliant tenants.

Timeline for Deposit Return

Landlords have 14 days post-moveout to return the full security deposit or provide itemized deductions. This strict rule comes from the Housing Stability and Tenant Protection Act of 2019 (HSTPA), which sets clear deposit return timelines under New York City rent laws. Tenants gain strong protections against delays in NYC landlord obligations.

The 14-day clock starts when the tenant vacates the apartment and returns all keys. Landlords must inspect for normal wear and tear versus actual damages quickly. Failure to comply can lead to full deposit refunds plus potential penalties in NYC housing court.

For rent stabilized apartments or rent controlled apartments, this timeline applies alongside DHCR oversight. Tenants should document the move-out condition with photos to support deposit disputes. Experts recommend sending a forwarding address in writing to ensure prompt communication.

In practice, a tenant moving out of a Brooklyn multifamily building might expect their one month rent deposit back within two weeks if no issues arise. Delays often spark calls to tenant associations for advice on landlord tenant law enforcement. Always keep lease agreements handy for reference.

Notice Requirements

Within the 14-day deposit return timeline, NYC landlords must send a written notice if withholding any portion. This notice details reasons for deductions from deposit, like unpaid rent or repairs beyond normal wear. Verbal explanations do not count under HSTPA guidelines.

The notice should itemize costs with receipts or estimates attached. For example, if a tenant damaged a kitchen cabinet, the landlord lists the replacement cost specifically. Tenants can challenge vague or excessive claims in small claims court.

Landlords also owe interest on deposit annually, calculated per state law. For rent stabilized units, DHCR provides forms to verify compliance. Property managers in the NYC rental market often use templates to meet these strict tenant rights NYC standards.

If no notice arrives by day 14, tenants can demand the full amount immediately. This protects against common issues in lease renewals or vacancy leases. Consult a real estate attorney for complex cases involving pet deposits or furnished apartments.

Calculating Deductions

Deductions from the security deposit cover only legitimate costs, such as repairs for tenant-caused damage excluding normal wear and tear. Landlords cannot deduct for cleaning unless specified in the lease agreement as a non-refundable fee. Always compare charges against pre-move-in photos.

Unpaid rent or utilities can be subtracted, but landlords must prove amounts owed. In a rent stabilized apartment, RGB-approved rents set the baseline for calculations. Overcharges risk treble damages or rent overcharge claims via DHCR.

Calculate totals by listing each item: for instance, $200 for a broken window plus $150 for repainting scuffed walls. Tenants review for fairness, disputing inflated repair bills common in competitive apartment rental NYC scenarios. Keep records to counter potential deposit disputes.

If deductions exceed the deposit, landlords cannot pursue extra without a court judgment. This eviction protection element strengthens tenant security. Best practices include getting multiple repair quotes to justify amounts under NYC rent reform rules.

Tenant Rights and Remedies

Tenants can sue in NYC Small Claims Court for full deposit + treble damages + attorney fees without lawyer. This option works for disputes up to $10,000. It offers a quick path under New York City rent laws.

Start with a demand letter to the landlord. Send it certified mail requesting your security deposit refund within 30 days. Include details like the move-in date and proof of no damages beyond normal wear and tear.

If ignored, file in Small Claims Court with a low fee of $15 to $20. Courts like Bronx Civil Court at 346 Broadway handle these cases. For bigger claims or treble damages under RPL 7-108, go to Housing Court.

Follow this 3-step remedy process: demand letter, Small Claims filing, then Housing Court. Tenants often recover full deposits plus penalties. Consult a real estate attorney for complex cases like rent stabilized apartments.

Step 1: Send a Demand Letter

Craft a formal demand letter template outlining the deposit return timeline. State the legal maximum is one month rent per the Housing Stability and Tenant Protection Act 2019. Demand response in 30 days or face court.

Attach photos of the apartment at move-out and your forwarding address. Reference landlord obligations for interest on deposit and deductions only for actual damage. This step pressures many NYC landlords to comply without litigation.

Mail via certified return receipt for proof. Keep copies for small claims court. Experts recommend this as the first line in tenant rights NYC enforcement.

Step 2: File in Small Claims Court

NYC Small Claims Court locations include 346 Broadway for Bronx residents. Filing fees range from $15 to $20 for claims up to $10,000. No lawyer needed, making it accessible for deposit disputes.

Bring lease agreement, demand letter, and evidence of unlawful deposit like charges over one month rent. Judges often rule quickly on clear security deposit cap violations. Recover your money plus court costs.

This suits most cases in multifamily buildings or single family rentals. It enforces HSTPA rules without Housing Court delays. Tenants gain leverage in the NYC rental market.

Step 3: Escalate to Housing Court

For treble damages under RPL 7-108, file in NYC Housing Court. This triples your deposit award for willful non-refunds. Ideal for repeated landlord violations or rent stabilized units.

Seek attorney fees and interest too. Courts prioritize tenant protections from local rent laws. Provide deposit accounting records if available.

Housing Court handles eviction protection ties and overcharge penalties. Join a tenant association for support. This step ensures strong remedies against non-compliant NYC landlords.

Recent Changes and Exceptions

The 2019 Housing Stability and Tenant Protection Act (HSTPA) capped security deposits at one month's rent in New York. This change ended the prior practice of charging up to two months. Landlords in NYC must now follow this one month rent limit for most residential leases.

Before 2019, two months rent was common for security deposits under older New York City rent laws. The HSTPA reformed tenant protections, including deposit caps and interest requirements. In 2020, Local Law 152 added exceptions for furnished apartments in short-term sublets.

Three main exceptions apply to the security deposit cap. Commercial leases, sublets under two months, and cooperative conversions allow higher amounts. For example, a furnished short-term sublet might require a larger move-in deposit to cover potential damages.

Enforcement by the Division of Housing and Community Renewal (DHCR) has increased. Tenants can file complaints for unlawful deposits, seeking refunds and penalties. Always review your lease agreement to ensure compliance with these rules.

Timeline of Key Changes

Pre-2019, NYC landlords often charged two months rent as security deposits in rent stabilized and market rate apartments. The HSTPA of 2019 imposed a strict one-month cap statewide. This shifted the NYC rental market toward stronger tenant rights.

The 2024 Rent Guidelines Board (RGB) decisions did not alter deposit rules. Focus remained on rent adjustments for stabilized units. Landlords should note that RGB changes affect lease renewals but not the deposit limit.

Local Law 152 in 2020 clarified exceptions for furnished apartments. Short-term rentals under two months can exceed the cap. This helps property managers handle temporary housing needs.

Practical advice: Document everything in writing for vacancy leases or renewals. Consult a real estate attorney if dealing with older lease terms predating HSTPA.

Exceptions to the One-Month Cap

NYC landlords face limited exceptions to the security deposit cap. First, commercial leases follow separate rules without the one-month limit. These apply to business spaces, not residential units.

Second, sublets shorter than two months allow higher deposits, especially for furnished apartments. A tenant subletting for a month might pay extra to cover furniture risks. Local Law 152 supports this flexibility.

Third, cooperative conversions permit larger deposits during transitions. This protects boards in multifamily buildings. Always distinguish these from standard rent controlled or stabilized apartments.

Verify lease type before collecting deposits.
Use itemized lists for any pet deposits or fees.
Avoid mixing with non-refundable fees to prevent disputes.

Enforcement Trends and Comparisons

DHCR cases related to deposit overcharges rose notably from 2018 to 2023. Tenants increasingly pursue claims in NYC Housing Court or small claims for unlawful amounts. This reflects stronger awareness of tenant rights NYC.

Compare NYC's one-month rule to other cities. Boston also limits deposits to one month's rent, aligning with NYC practices. California allows up to two months rent maximum, varying by location.

Landlords risk treble damages or attorney fees in court judgments. Tenants can demand interest on deposits and prompt refunds. Best practices include separate deposit accounting to avoid eviction protections issues.

City	Maximum Security Deposit
NYC	One month rent
Boston	One month rent
California	Two months rent

Frequently Asked Questions

How Much Can a NYC Landlord Charge for a Security Deposit?

In New York City, under the Housing Stability and Tenant Protection Act of 2019, landlords are legally limited to charging a maximum security deposit of **one month's rent**. This applies to most residential rentals, including apartments in rent-stabilized units. For example, if your monthly rent is $3,000, the security deposit cannot exceed $3,000. Always confirm with your lease agreement and local housing laws, as exceptions may apply to certain non-regulated properties.

Can a NYC Landlord Charge More Than One Month's Rent as a Security Deposit?

No, NYC landlords cannot charge more than one month's rent for a security deposit in residential leases governed by state law. This cap was established to protect tenants from excessive upfront costs. If a landlord demands more, such as two months' rent, it is illegal, and you can report it to the New York State Attorney General's office or seek legal recourse through housing court.

Does the Security Deposit Limit Apply to All NYC Rentals?

The one-month rent limit for security deposits generally applies to all residential rentals in NYC, including market-rate, rent-stabilized, and rent-controlled apartments. However, it may not apply to certain exempt properties like owner-occupied buildings with fewer than six units, sublets, or commercial leases. Always check your specific lease type and consult the NYC Department of Housing Preservation and Development (HPD) for clarification.

What Happens If a NYC Landlord Charges an Illegal Security Deposit Amount?

If a NYC landlord charges more than one month's rent as a security deposit, tenants have rights to recover the excess amount, potentially triple damages, plus attorney's fees under RPL 7-108. You should notify the landlord in writing, document everything, and consider filing a complaint with HPD or the Attorney General. Retaining legal counsel from organizations like the Legal Aid Society can help enforce your rights.

How and When Must a NYC Landlord Return the Security Deposit?

NYC landlords must return the security deposit, minus any lawful deductions for damages or unpaid rent, within **14 days** after the tenant vacates and provides a forwarding address. Deductions must be itemized in writing. Failure to comply can result in the landlord owing the full deposit plus penalties. Deposits do not accrue interest in NYC unless specified in the lease for buildings with 6+ units.

Are There Additional Fees NYC Landlords Can Charge Besides the Security Deposit?

While the security deposit is capped at one month's rent, NYC landlords can charge separate application fees (up to $20), pet fees, or move-in fees if reasonable and disclosed. However, they cannot disguise extra deposits as other fees to exceed the limit. 'How Much Can a NYC Landlord Charge for a Security Deposit?' refers specifically to the security deposit cap-review your lease for other potential costs and ensure compliance with local laws.