Security Deposit

What it means

Money a tenant pays at move-in that the landlord holds until move-out. In New York, the maximum is one month's rent. It has to be kept in a separate account and cannot be spent by the landlord during the tenancy. When the tenant moves out, the landlord has 14 days to return the deposit. If money is kept back, the landlord must send a written list of exactly what each deduction is for and copies of receipts or invoices. If the landlord misses the 14-day deadline, they lose the right to keep any of it — the full amount must be returned. Allowed deductions are limited to unpaid rent, damage beyond normal wear and tear, unpaid utilities, and moving or storage costs.

When you might hear this

You hear this when you first sign a lease and again when you move out. A security deposit is money a landlord holds in case of damage or unpaid rent. It is the tenant's money — not the landlord's — the landlord is only holding it.

What to ask