New York security deposit rules.
The New York rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: N.Y. Gen. Oblig. Law §§ 7-103, 7-108 · Not legal advice
How much can be charged
Effective June 2019 (HSTPA), capped at one month of rent. Applies to almost all residential tenancies statewide.
When it has to come back
14 days from move-out, with an itemised statement. Tenant must be invited to a pre-move-out inspection.
Interest
For buildings with six or more units, deposits must be held in an interest-bearing account; tenant earns interest minus 1% admin fee.
Where the money has to sit
Six-or-more-unit buildings must hold deposits in a separate New York-located interest-bearing account; smaller buildings need not segregate.
What catches operators out
- Older leases written before HSTPA may still carry non-compliant two-month deposits.
- Pre-move-out inspection notice is mandatory before deductions.
- State law bars collecting last month’s rent on top of the deposit, and the deposit cannot be applied to rent during the tenancy.
What this looks like with Standby in New York.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and New York law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in New York. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.