deposit

Regulations in New York State govern the handling of funds landlords collect from tenants as a guarantee against property damage or unpaid rent. These regulations dictate permissible amounts, allowable uses, and the process for returning the funds to the tenant after the lease term concludes. For instance, limitations exist on the amount a landlord can demand as a security deposit, typically capped at one month’s rent.

Compliance with these statutes protects both landlords and tenants. Landlords are assured a mechanism for recovering legitimate costs associated with property damage caused by the tenant, while tenants are safeguarded against unfair retention of their funds. Historically, these laws evolved to address imbalances in power between landlords and tenants, ensuring fairness and promoting transparency in rental agreements.