What's happening
This bill limits the total amount a landlord can charge a tenant upfront, including security deposits and fees, to no more than two months' rent.
Why it matters
Helps renters keep more cash on hand. By capping all upfront costs (security deposit, fees, advance rent) at two months’ rent, tenants—especially those with limited savings—are less likely to be priced out of moving into a new apartment.
Limits “hidden” or layered fees. The bill specifically includes processing fees and advance rent in the cap, closing loopholes that landlords might use to demand more money upfront through miscellaneous charges.
Shifts financial risk away from tenants. With smaller upfront payments, tenants bear less of the financial burden if a landlord fails to return deposits or if there are disputes at the end of a lease.
Standardizes expectations for both landlords and tenants. Clear statewide limits make it easier for renters to compare apartments and for landlords to comply with the law, reducing confusion and potential legal disputes.
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Who cares
Headline styles
Limit Security Deposits
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 26
No co-sponsors yet.
History
- Recommit, enacting clause stricken
- 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.
Limit Security Deposits
In Assembly Committee · Judiciary · Sponsor Steven Cymbrowitz
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4110
2019-2020 Regular Sessions
IN SENATE
February 28, 2019
Introduced by Sen. KAVANAGH -- 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 the amount of security deposit that a landlord may charge a tenant
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 7-108 of the general obligations law is amended by adding a new paragraph (f) to read as follows:
(f) Except in instances where statutes or regulations provide for a lesser payment, fee, deposit or charge, no landlord, lessor, sub-lessor or grantor may demand any payment, fee, deposit, or charge, including, but not limited to, any payment, fee, deposit, or charge that is imposed at the beginning of the tenancy to be used to reimburse the landlord for costs associated with processing a new tenant or that is imposed as an advance payment of rent, used or to be used for any purpose, including a security deposit, in an amount or value in excess of an amount equal to two months' rent, including the first month's rent.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09998-02-9
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 the amount of security deposit that a landlord may charge a tenant
Purpose
The purpose of this bill to restrict the amount that can be collected by a landlord from a tenant for a security deposit to two months' rent.
Summary of provisions
Section 1: Amends subdivision 2, section 7-108 of the general obli- gations law by adding a new paragraph (f) to limit the amount a land- lord, lessor, sublessor, or grantor may demand for a security deposit to no more than two months' rent, including the first month's rent.
Section 2 sets forth the effective date.
Justification
Security deposits are often arbitrarily determined and sometimes discri- minatory towards certain individuals with financial limitations. Restricting the amount that a landlord can collect for a security depos- it on a rental unit reduces a barrier for renters who are often required to pay a significant portion of their annual incomes in order to secure housing.
Legislative history
New bill.
Fiscal implications
None.
Effective date
This act shall take effect on the ninetieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.