New York Security Deposit Laws

New York Security Deposit Limit

New York state has no limit on security deposits for nonregulated units. However, New York City (among other jurisdictions) with rent controlled/rent stabilized units may have local caps imposed.

New York state requires a security deposit to be kept separate from a landlord’s personal assets, but the statute does not require the deposit to made in a financial institution unless the landlord owns a residential building consisting of at least six units. then he or she must use a financial institution located in New York. (N.Y. Gen. Oblig. Law §§ 7-103 to 7-108).

Deadline for Returning Security Deposit

The security deposit must be returned within a reasonable time (usually within 30 days) after the tenant has vacated and returned the keys.

If a deposit is placed in a bank, the name and address of the institution along with the amount must be disclosed to the tenant. If the landlord’s building has nonregulated units of at least six units, tenants must receive interest on the security deposit. The tenant may choose how to receive the interest payment either as a credit toward the rent, an annual payment, or one lump sum whenever tenancy ends.