What is the maximum security deposit a landlord can charge in New York?

What the Law Says

New York law strictly limits how much a landlord can collect as a security deposit, and when and how it must be returned. These rules apply to most residential rental units statewide.

As of September 1, 2023, under the Housing Stability and Tenant Protection Act (HSTPA), landlords in New York may not demand or receive a security deposit exceeding one month’s rent for any new or renewed lease.

This cap applies regardless of lease term length or unit type — unless the unit is rent-stabilized and subject to special rules about vacancy increases. For rent-stabilized apartments, if the landlord did not lawfully increase the rent upon vacancy, the security deposit cannot exceed the prior legal regulated rent.

Landlords must hold security deposits in an interest-bearing account in a New York financial institution. If the deposit exceeds $5,000, the account must pay at least the prevailing interest rate for similar accounts — currently no less than 5% per year.

Within 14 days after the tenant vacates, the landlord must either return the full deposit or provide a detailed, itemized list of deductions along with the balance due.

Statutory Text

No landlord shall demand or receive a security deposit in an amount greater than one month’s rent.

— Real Property Law § 7-108(1-a) — Security deposit limitations

Statutory Text

The landlord shall return the security deposit, less any lawful deductions, within fourteen days after the tenant has vacated the premises.

— Real Property Law § 7-108(5) — Return of security deposit

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