Rent security deposits in NYC and in New York State are capped at one month of rent according to the Housing Stability and Tenant Protection Act of 2019. Within fourteen days of a tenant vacating, a landlord must provide the tenant with an itemized statement indicating the basis for the amount of the deposit retained, if any, and return any remaining portion of the deposit to the tenant.
Tenants in NYC also have the right to request an inspection before moving in to assess any existing damage, and landlords must draft a written agreement which itemizes any such damage. Additionally, all tenants have the right to request an inspection prior to moving out. The landlord must disclose the presence of any conditions which may result in a deduction from the security deposit, and the tenant has the opportunity to repair any issues prior to vacating the property.
Yes. Rental security deposits in NYC are limited to a maximum of one (1) month of rent. Rental regulation changes enacted in 2019 also prohibit the prepayment of rent. This means that the maximum amount of money a New York City landlord may collect upon lease signing is one month of rent and a one month security deposit, for a total of two months.
It’s important to note that the one-month cap on the size of a security deposit does not apply to existing leases which were signed prior to July 14th, 2019.
A landlord who collected a security deposit in excess of one month for an existing lease is permitted to hold onto the full, original security deposit amount until the expiration of the lease.
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Rental security deposits must be returned within 14 days of moving out. Under the Housing Stability and Tenant Protection Act of 2019, a tenant may also request an inspection of the unit prior to the expiration of the lease. The landlord must disclose to the tenant any potential damage which must be repaired in order to avoid a deduction from the security deposit.
The tenant has the opportunity to cure such damage prior to vacating the unit.
If a landlord fails to provide a tenant with an itemized statement of deductions and any remaining portion of the deposit within 14 days, “the landlord shall forfeit any right to retain any portion of the deposit.”
A new tenant may also request an inspection prior to moving in. The landlord is required to prepare a written agreement which documents all existing damage.
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