Property Management
Money collected by a landlord from a tenant at the start of a lease to cover potential damages or unpaid rent.
A security deposit is a sum paid by the tenant to the landlord as protection against property damage or lease violations. In New York, there is no statutory maximum for security deposits in unregulated units, but for rent-stabilized apartments the deposit is limited to one month's rent. The landlord must hold the deposit in a NY-based bank, provide the tenant with the bank name and address, and return the deposit (minus documented deductions) within 14 days after the tenant moves out. Failure to comply can result in the landlord forfeiting the right to retain any portion of the deposit.
Exam Tip
In NY, the landlord must return the security deposit within 14 days of move-out. Interest rules apply in buildings with 6+ units.
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Property Management
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