The majority of residential leases and rental contracts in New York call for a security deposit, which is a sum of money—typically one month’s rent—that is used to cover extraordinary damage to the property and to protect the landlord from losing money if a tenant breaks the lease early without paying. There are so many laws covering landlords and tenants in New York State. In this article, Eastcoastlaws.com will outline what you need to know about New York security deposit limits and deadlines.
Does New York state law limit how much a landlord can charge a tenant for a security deposit?
In New York state, the law limits the amount a landlord can charge a tenant for a security deposit to one month’s rent, unless the rental unit is subject to the City Rent and Rehabilitation Law or the Emergency Housing Rent Control Law. In those cases, different limits may apply.
What about when a tenant moves out? What is the deadline in New York for returning a security deposit?
In New York state, when a tenant moves out of a rental property, the landlord has 14 days to return the security deposit, unless the tenant has caused damage to the property. If the tenant has caused damage, the landlord must provide an itemized list of the damages and the cost to repair within the same 14-day period. If the landlord fails to return the security deposit or provide an itemized list within the specified time period, the tenant may have a claim for the return of the security deposit, as well as damages for any actual damages that may have been caused by the landlord’s failure to comply with the law.
Is there additional information that landlords must provide to tenants when it comes to security deposits in New York?
Yes. Landlords in New York are required to reveal the name and address of the financial institution holding the security deposit as well as the amount of the deposit if it is held in a bank. Every time a tenant rents from a landlord, the landlord is allowed to keep 1% of the deposit each year as an administrative charge. Additionally in New York, owners of unregulated apartments in structures with six or more units are required to give tenants interest on security deposits. Depending on the tenant’s preference, the interest might be deducted from the rent, paid at the end of each year, or paid at the end of the lease.
Where can I look up New York law on security deposits?
If you want to go right to the source and look up New York law on security deposits—or if you’re writing a letter to a landlord or tenant and want to cite the applicable law—the relevant statute(s) can be found at N.Y. General Obligations Law sections 7-103 to 7-108 (2022). To access New York statutes, visit the New York State Senate’s website, or check out the Library of Congress’s legal research site.
The New York attorney general’s website also offers a list of New York housing and renting resources.
Can a landlord ask for 2 months security deposit in NY?
In New York state, a landlord can only ask for a security deposit of up to one month’s rent. Asking for more than one month’s rent as a security deposit is not allowed under state law. If a landlord charges more than one month’s rent for a security deposit, the excess amount is considered to be prepaid rent and is subject to the laws regulating prepaid rent in New York. This means that if the landlord does not return the excess amount to the tenant, the tenant may have a claim for the return of the excess amount.
What happens if the landlord does not return the security deposit in 30 days NYC?
In New York City, if a landlord fails to return a tenant’s security deposit within 30 days of the tenant moving out, the tenant may have a claim against the landlord. The tenant may be able to recover the security deposit, as well as damages for any actual damages that may have been caused by the landlord’s failure to comply with the law.
It is recommended that the tenant send a written demand for the return of the security deposit to the landlord, either by certified mail or by personal delivery with a receipt. If the landlord fails to return the security deposit after the written demand, the tenant may choose to file a complaint in Small Claims Court.
It is important for tenants to keep records of all correspondence and documentation related to the security deposit, as this may be helpful in the event of a dispute with the landlord. Tenants should also be aware of their rights and responsibilities under New York City’s security deposit laws.