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# 9FACT SHEET
A PUBLICATION OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT ADMINISTRATION FS-09 (10/2019)
Renting an Apartment - Security Deposits and Other Charges
A security deposit is money that a tenant, their
guarantor or other third-party deposits with the
owner of the apartment for the repair of any
damages to the apartment for which the tenant is
responsible.
The Housing Stability and Tenant Protection Act
(HSTPA) of 2019 limits the amount of a security
deposit for any apartment to one month’s rent. It
is unlawful for the owner to ask for an additional
amount of money from the tenant, guarantor or
third party. If two months’ security deposit was
collected from a tenant by the owner when the
apartment first came under rent stabilization, and
the same tenant is still occupying the apartment,
the owner must refund to the tenant any additional
security deposit which exceeds one month’s rent.
The next rent stabilized tenant cannot be required
to deposit more than one month’s rent as security
deposit. The tenant can file a “Tenant’s Complaint
of Rent and/or Other Specific Overcharges in a
Rent Stabilized Apartment” (DHCR Form RA-89) if
the owner demands the tenant, a guarantor, or any
third party on behalf of the tenant pay more than
one month’s security.
A building owner or property manager is
prohibited by law from requesting or otherwise
requiring payment of a deposit or additional
charge to reserve an apartment unit. Such room
reservation charges or deposits, whether paid for
or demanded from the tenant, a guarantor, or other
third party, are unlawful. Such demands, charges,
and requirements are often referred to as “key
money.”
A broker’s fee is a fee charged for the transaction
of renting an apartment unit. It may be charged
and collected by licensed real estate brokers or
salespersons. However, DHCR may determine
that a rent overcharge was collected if it is found
that a building owner, property manager, and
their agents or employees collected a broker’s
fee for the rental of a unit they own or manage. A
company and a real estate broker or salesperson
are also prohibited from collecting a broker’s fee
for the rental of an apartment unit that is owned or
managed by a building owner or property manager
with whom the company, broker, or salesperson is
aliated.
When a lease is renewed at a higher rental
amount, or the rent is increased during the term of
the lease, the owner can collect additional money
from the tenant to bring the security deposit up
to the new monthly rent. Even though a tenant
may be exempt from paying a lease increase
because of his or her Senior Citizen Rent Increase
Exemption (SCRIE) or Disability Rent Increase
Exemption (DRIE), the tenant must still pay the
increased security.
The security deposit must be kept by the owner
in an interest-bearing account in a New York State
bank. The owner must notify the tenant of the
name and address of the bank and pay the tenant
the full annual interest, less 1% of the security
deposit per year for the owner’s administrative
costs. The tenant can choose whether the interest
is to be subtracted from the rent, held in trust until
the end of the tenancy, or paid in a lump sum at
the end of each year.
A PUBLICATION OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT ADMINISTRATION FS-09 (10/2019)
FACT SHEET #9: RENTING AN APARTMENT - SECURITY DEPOSITS AND OTHER CHARGES
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To visit a Borough Rent Oce, by appointment only, please contact:
QUEENS
92-31 Union Hall Street
6th Floor
Jamaica, NY 11433
718-482-4041
BROOKLYN
55 Hanson Place
6th Floor
Brooklyn, NY 11217
718-722-4778
UPPER MANHATTAN
163 W. 125th Street
5th Floor
New York, NY 10027
212-961-8930
LOWER MANHATTAN
25 Beaver Street
New York, NY 10004
212-480-6238
BRONX
1 Fordham Plaza
4th Floor
Bronx, NY 10458
718-430-0880
WESTCHESTER
75 South Broadway
3rd Floor
White Plains, NY 10601
914-948-4434
Rent Connect:
rent.hcr.ny.gov
Ask a question:
portal.hcr.ny.gov/app/
ask
For translation help:
hcr.ny.gov/language-
accessibility
Our website:
hcr.ny.gov/rent
SOURCES
New York City Rent Stabilization Code, Section 2525.4
Tenant Protection Regulations, Section 2505.4
New York City Rent and Eviction Regulations, Section 2205.5
New York State Rent and Eviction Regulations, Section 2105.5
Housing Stability and Tenant Protection Act of 2019
A security deposit should not be used as a final
month’s rent. At the end of the lease, if the tenant
honored the terms and conditions of the lease
and left the apartment in the same condition as it
was when initially rented, except for normal wear,
the owner must return the full security deposit. If
damage was done, the owner may apply part or all
of the security deposit to the cost of repair.
If the tenant disagrees with the owner over the
return of the security deposit or payment of
interest, the tenant may begin a proceeding in
small claims court or contact the Consumer Frauds
and Protection Bureau of the New York State
Attorney General’s Oce.
