What's happening
This bill allows tenants in New York to pay security deposits in monthly installments without extra fees or interest.
Why it matters
Makes renting more accessible. by lowering the upfront cost barrier for tenants, who often struggle to pay large security deposits all at once—especially helpful for low- and moderate-income renters.
Standardizes and clarifies payment plans. by requiring installment agreements to be written into leases, specifying both the total deposit and the amount due each month, which protects both tenants and landlords from misunderstandings.
Applies broadly to various upfront charges. , not just traditional security deposits but also any advance or non-refundable fee used as a rental down payment, closing loopholes that could otherwise allow landlords to circumvent the rule.
Creates real enforcement through penalties. by allowing for civil fines (up to 15% of annual rent) against landlords who violate the installment-payment option, giving tenants stronger leverage and a clear remedy if their rights under this law are denied.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Allow Rent Deposit Installments
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Pay Security Deposits Monthly
In Assembly Committee · Judiciary · Sponsor Linda Rosenthal
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3026
2019-2020 Regular Sessions
IN SENATE
January 31, 2019
Introduced by Sen. BAILEY -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary
AN ACT to amend the general obligations law, in relation to permitting lessees the option to pay security deposits in installments
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 7-103 of the general obligations law is amended by adding a new subdivision 2-c to read as follows:
2-c. For any deposit or advance under this section, the person making such deposit or advance shall have the option to pay such deposit or advance in installments.
(a) Such installments shall be due on the first of each subsequent month until the deposit or advance is paid in full.
(b) For leases under this section of a term of one year or longer, tenants shall be allowed to pay not more than six consecutive and equal installments.
(c) Landlords shall not impose any additional fees or interest on a tenant that pays his or her security deposit or advance under this subdivision.
(d) Any agreement to pay a security deposit in installments shall be included within such contract or agreement and shall specify the total deposit amount due and the amount due for each installment.
(e) This subdivision shall apply to any deposit, advance or non-refundable fee used as a down payment for use of rental property.
(f) Any person who violates the provisions of this subdivision shall be punished by a civil fine of up to fifteen percent of the annual rent under such contract or agreement.
§ 2. This act shall take effect on the sixtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06063-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general obligations law, in relation to permitting lessees the option to pay security deposits in installments
Purpose
This bill would permit tenants entering into a residential lease the ability to pay their security deposit in installments.
Summary of specific provisions
Section one amends section 7-103 of the general obligations law by adding a new subdivision 2-c.
Section two sets forth the effective date.
Justification
A security deposit is an upfront payment demanded by a landlord from a prospective tenant to insure against any damages made to a unit by an outgoing tenant. In theory, security deposits should be returned in full if no damages are made, and the landlord should retain no more than the amount necessary to cover any expenses associated with needed repairs. In practice, security deposits are poorly regulated and the result is an arbitrary process that usually benefits the landlord and leaves the tenant with no formal recourse to recover lost money.
New York State residents have long struggled to find affordable housing, especially residents living in New York City. According to a report from the office of New York City Controller Scott Stringer, New York City tenants spent $507 million on security deposits in 2016. Often times, a security deposit for a residential lease can be equivalent to two months' worth of rent payments or more, creating a serious financial burden for New Yorkers already struggling with exorbitant housing costs. Most landlords will require this security deposit to be paid in full along with their first month's rent at the time of signing a lease.
A security deposit, meant to provide security to a landlord in case of damages to a unit, should not be preventing working-class residents from being able to obtain safe and affordable housing. This legislation would protect tenants and ensure renting an apartment does not become an excessive financial burden by allowing tenants to pay their security deposits in up to six installments. Landlords under this legislation would be prohibited from imposing any additional fees or penalties on tenants who elect to pay such deposit in installments.
Legislative history
New bill.
Fiscal implications
None to the State.
Effective date
This act shall take effect in 60 days.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.