Bill > A06423

This bill modifies New York state law regarding tenant security deposits, primarily focusing on rent-stabilized dwelling units. The bill limits security deposits to no more than one month's rent and requires that the entire deposit be refundable to the tenant upon vacating the premises, with exceptions only for specific, reasonable costs such as unpaid rent, utility charges, or damages beyond normal wear and tear. The legislation mandates that landlords provide tenants with an opportunity to inspect the property before signing a lease and document its initial condition, which protects tenants from being charged for pre-existing damages. Landlords must now provide an itemized statement of any proposed deposit deductions and give tenants a chance to remedy any issues before the end of their tenancy. Additionally, landlords must return the deposit or provide an itemized statement within 14 days of the tenant vacating the property, or else forfeit their right to retain any portion of the deposit. The bill also establishes that landlords bear the burden of proof in any dispute over deposit retention and can be liable for actual and potentially punitive damages if they willfully violate these provisions. Furthermore, the bill addresses the transfer of security deposits when rental properties change ownership, ensuring that new property owners are responsible for returning deposits under certain circumstances.

Housing and Urban Affairs, Justice

https://www.nysenate.gov/legislation/bills/2025/A6423