Collecting a security deposit from the tenant is an absolute necessity because lawsuits against tenants for property damage and unpaid rent are very costly, the tenant may be “judgment proof” and the landlord does not have a right to seize the tenant’s property or obtain a lien for unpaid rent.

The security deposit should be collected before the tenant is given the apartment keys.

Security deposits are trust funds which are used by the landlord to pay for damages to the apartment and to cover non-payment of rent. There is no limit on the amount that New York landlords can request for a security deposit.

The landlord should provide the tenant with an itemization of all deductions that are made from the security deposit.

Landlords may not combine security deposit funds with their own personal accounts. The tenant must be notified in writing of the name and address of the bank holding the security deposit and the amount deposited.

This information should be contained in the lease.

If you need more information on New York Landlord-Tenant Law, type a question into the search box found on the lower right left of this page or see my New York Landlord-Tenant Law webpage.