New York Security Deposit Laws: Limits, Return Deadlines, and HSTPA Rules

The Housing Stability and Tenant Protection Act (HSTPA) of 2019 fundamentally reformed security deposit law in New York State. Before the HSTPA, landlords in many parts of the state could charge multiple months' rent as a deposit. Today, the rules are strict, uniform, and aggressively enforced.

The One-Month Cap

Under NY General Obligations Law § 7-108, as amended by the HSTPA, landlords can collect a security deposit of no more than one month's rent. This applies to every residential tenancy in New York State-whether the apartment is in Manhattan, Buffalo, or a small upstate village.

What Counts Toward the Cap

The one-month cap is all-inclusive. Landlords cannot collect:

• Additional "last month's rent" in advance.
• Move-in fees, key deposits, or pet deposits that, combined with the security deposit, exceed one month's rent.
• Any other up-front charge that functions as additional security.

Pet Deposits

Under the HSTPA, a landlord cannot charge a separate pet deposit that would bring the total up-front charges above one month's rent. Any damage caused by a pet would be deducted from the single security deposit at lease-end.

The 14-Day Return Deadline

This is one of the strictest return deadlines in the country. After the tenant vacates the unit and the tenancy terminates, the landlord must:

1. Return the full deposit, or
2. Provide an itemized statement of all deductions along with the remaining balance.

This must be completed within 14 days. If the landlord fails to return the deposit or provide the itemized list within this window, the landlord forfeits the right to retain any portion of the deposit, regardless of whether there was legitimate damage.

Allowable Deductions

A landlord can deduct from the security deposit only for:

• Unpaid rent owed at the end of the tenancy.
• Damages beyond normal wear and tear caused by the tenant.

Normal Wear and Tear vs. Damage

• Normal Wear and Tear: Faded paint, minor scuffs on hardwood floors, worn carpet in high-traffic areas, small nail holes from hanging pictures.
• Damage: Large holes in walls, broken fixtures, stained or burned carpet, unauthorized alterations.

Pre-Move-Out Inspection

While not mandated by state law, conducting a pre-move-out walkthrough with the tenant is strongly recommended. Use a written checklist and photographs to document conditions and prevent disputes.

Prohibited Practices Under the HSTPA, the following are illegal:

• Requiring a deposit greater than one month's rent, regardless of the tenant's credit score, rental history, or immigration status.
• Charging a non-refundable deposit for any purpose.
• Retaining the deposit for normal wear and tear.
• Failing to provide the itemized deduction statement within 14 days.
• Using the security deposit during the tenancy (e.g., applying it to a missed rent payment without the tenant's written consent).

How Landager Helps

Landager tracks lease terms, HSTPA deadline compliance, and security deposit interest - making it easy to handle your property portfolio while staying compliant with New York regulations.

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