[NY] [NY] How much can a landlord charge for a security deposit?

Lexi, Chatbot

I understand that dealing with landlord-tenant issues can be stressful. Can you please describe the specific problem you are facing with your landlord or tenant?

Lexi, Chatbot

How long have you been experiencing this issue?

Lexi, Chatbot

Is there anything else the landlord-tenant lawyer should know before I connect you? Rest assured they’ll be able to help with your high security deposit.

TJ, Esq.

Hello! My name is TJ and I’m an attorney. Thanks so much for the opportunity to assist you! I’ve gone over the details you shared and I’ll post my initial response shortly. I’ll also post a few quick questions. They’ll help me better understand your situation so I can give you a more complete and tailored answer.

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TJ, Esq.

Hi again! Generally, the amount a landlord can charge for a security deposit is limited by state law, even when you're on Section 8. Some states cap the deposit at one or two months' rent. If your landlord charged more than what's allowed, you might have grounds to challenge that amount. You could potentially recover the excess amount or even break the lease without penalty, depending on your state's specific laws.

TJ, Esq.

Let's discuss this in more detail so I can provide a more thorough response.

What state is this situation occurring in?

Was the security deposit amount stated in your lease agreement?

What was the exact amount of the security deposit charged and what is your monthly rent amount?

TJ, Esq.

In New York, a landlord can't charge a security deposit that's more than one month's rent. Since your security deposit of $1,626.76 is more than your monthly rent of $713.00, your landlord appears to have charged an illegal amount. You could send a letter to your landlord demanding the return of the overcharged portion of the security deposit.

Was the security deposit paid in a single payment or in installments?

TJ, Esq.

Since you haven't paid the security deposit yet, this puts you in a better position. Your landlord can't legally demand a security deposit that exceeds one month's rent. If you pay the full amount they're asking for, it'll be on you to try and get the overcharge back later, which can be a hassle.

You should consider only paying the amount of one month's rent for the security deposit, which is $713.00, along with your first month's rent. Make sure to clearly indicate in writing that the $713.00 is for the security deposit. This way, you're complying with the legal limit for security deposits in New York.

It's really important to communicate this in writing. You could send a letter to your landlord (keep a copy for yourself) explaining that under New York law, a security deposit can't be more than one month's rent. State that you're paying $713.00 as the security deposit and the remaining amount for your August 1st rent. You want a paper trail.

If your landlord refuses to accept this, or tries to reject your tenancy because you won't pay the excessive security deposit, that's where things can get a bit more complicated. They can't legally deny you tenancy for refusing to pay an illegal amount.

Here's how you could proceed: First, send a certified letter (with a return receipt requested) to your landlord, reiterating that the security deposit is capped at one month's rent and that you will only pay $713.00 for the security deposit. Keep a copy of the letter and the mailing receipt. This creates a clear record.

If they refuse to accept your legal payment or try to evict you for not paying the excessive amount, you could consider legal action to compel them to comply with the law. This approach helps establish your position and can be useful if you need to go to court.

Did I completely answer your question, and do you need any clarification, or do you have any follow-up questions?

TJ, Esq.

Thanks for getting back to me. It's understandable to be confused when something changes after such a long time.

New York law on security deposits has changed over the years, particularly with the Housing Stability and Tenant Protection Act of 2019 (HSTPA). Before this law, landlords had more flexibility. The HSTPA capped security deposits at one month's rent for most residential rentals, regardless of whether it's a new lease or a renewal.

Even though you've lived there for 30 years and haven't paid a security deposit with prior renewals, the landlord can still ask for one now, as long as it complies with current law. However, they can't ask for more than one month's rent.

The key here is that the law now limits the amount. So, while they can request a security deposit now, they're still bound by that one-month's-rent limit. The fact that you're on Section 8 doesn't change this specific rule — it applies to all residential tenants.

This means you still have the protection under the law that the security deposit cannot exceed $713.00, which is one month of your rent. Your landlord's demand for $1,626.76 is still over that legal limit.

TJ, Esq.

Thanks for getting back to me again. That's a great question, and I can see why there might be some confusion.

You'd pay $713.00 for the security deposit. The security deposit is capped at one month's rent. So, since your monthly rent is $713.00, your security deposit should be $713.00, not $1,426.00 or any higher amount.

The $1,426.00 figure (which is two times your rent) would be relevant if you were paying both the first month's rent and a security deposit equal to one month's rent. In that scenario, you'd pay $713.00 for the first month's rent and $713.00 for the security deposit, totaling $1,426.00.

However, your landlord is asking for $1,626.76 for the security deposit alone. That's the part that exceeds the legal limit. You should only pay the $713.00 for the security deposit. You will also pay the first month's rent of $713.00. So, on August 1st, you should plan to pay a total of $1,426.00 ($713.00 for the security deposit and $713.00 for the first month's rent).

TJ, Esq.

You've got it exactly right!

For August 1st, you'd pay a total of $1,426.00. That breaks down to $713.00 for your first month's rent and $713.00 for the security deposit (since the security deposit can't exceed one month's rent in New York).

Then, starting in September, you'll just pay your regular monthly rent of $713.00. That initial higher payment is just for getting set up with the first month's rent and the legal security deposit.

TJ, Esq.

You're very welcome! I'm happy I could help!

TJ, Esq.

Thank you! You as well!