New York Security Deposit Rules, One-Month Cap + 14-Day Return (HSTPA 2019)
The Housing Stability and Tenant Protection Act of 2019 (HSTPA) significantly tightened New York residential security deposit rules. Landlords can collect no more than one month's rent under General Obligations Law Section 7-108(1-a), and must return the deposit within 14 days of move-out with an itemized statement of any deductions.
The one-month cap under HSTPA 2019
GOL 7-108(1-a) limits total residential deposits to one month's rent. This was a significant change from pre-2019 practice, where two-month deposits were common.
The cap includes all refundable deposits (security, cleaning, pet, key, etc.). Non-refundable fees are subject to their own limits.
The cap applies to:
- All market-rate rentals.
- Rent-stabilized units.
- Most co-op and condo leases.
14-day return deadline
GOL 7-108(1-a)(e) requires the landlord to return the deposit within 14 days after the tenant vacates. This was reduced from 30 days under pre-HSTPA law.
The clock starts when the tenant has vacated and returned possession (keys). It does not restart if the tenant sends a forwarding address later.
Itemized statement requirement
If the landlord withholds any part of the deposit, an itemized statement of deductions must be provided to the tenant within the 14-day window. The statement must:
- List each deduction separately.
- Include the amount of each deduction.
- State the reason for each deduction.
- Attach receipts or estimates for each deduction.
Failure to provide the itemized statement within 14 days forfeits the landlord's right to retain any part of the deposit.
Receipt requirement (GOL 7-103)
GOL 7-103 requires the landlord to provide a receipt for the deposit at the time of collection. The receipt must identify the landlord, the tenant, the property, the amount, and the bank where the deposit is held (if in an interest-bearing account for 6+ unit buildings).
Pre-move-out inspection right
HSTPA added a pre-move-out inspection right at GOL 7-108(1-a)(d). The landlord must offer the tenant a pre-move-out inspection at least two weeks before move-out. If performed, any deficiencies the landlord identifies must be given to the tenant with an opportunity to remedy before the move-out date. Deductions taken for deficiencies not identified in the pre-move-out inspection may be voided.
Where to get a compliant lease
LeaseKit's New York residential lease template has the one-month cap, 14-day return deadline, and pre-move-out inspection right built in. $29 one-time.
This post is informational. New York security deposit rules are strict. For contested cases, consult a New York-licensed attorney.