- Glossary
- /Security Deposit (NYC limit)
NYC rental glossary
Security Deposit (NYC limit)
Under HSTPA, a residential security deposit in New York is capped at one month’s rent, with strict return rules.
A security deposit is money a tenant gives the landlord at signing to cover unpaid rent or damage beyond ordinary wear. Since HSTPA in 2019, New York caps a residential security deposit at the equivalent of one month’s rent — landlords can no longer demand first, last, and security, or two months down.
The law also sets the return process: the landlord must offer a pre-move-in and pre-move-out inspection, return the deposit within fourteen days of the tenant moving out, and provide an itemized statement of any deductions. Failing to follow the procedure can forfeit the landlord’s right to keep any of it.
The one-month cap is a hard statutory rule, which is why a deposit beyond one month’s rent is a red flag on any New York lease.
Related terms
- Broker FeeThe commission paid to a rental broker — now, under the FARE Act, owed by the party who hired the broker.
- ConcessionA landlord incentive — usually free months — that lowers a tenant’s effective rent without cutting the face rent.
- Net Effective RentThe average monthly rent after spreading a concession (free months) across the lease term — lower than the gross rent.
- Housing CourtThe NYC court that hears landlord-tenant disputes — evictions, repairs, and warranty-of-habitability claims.
- HSTPA (Housing Stability & Tenant Protection Act)The sweeping 2019 New York law that reshaped rent regulation, ending vacancy deregulation and capping improvement increases.
This definition is general information about a New York City rental or rent-regulation concept, not legal advice. The rules change and often turn on facts specific to a building, unit, and tenancy — confirm the current rule and consult a qualified attorney before acting on any individual matter.