Lease Security Deposits in New York

The law in New York regarding Security Deposits

Landlord beware!

 

  • Separate Security Deposit Bank Account:   Under New York law, a Landlord cannot co-mingle rental security deposit funds with personal funds.   The security deposit on rental property must be kept in a separate bank account from the Landlords personal bank account.   If the rental property contains 6 or more family dwellings, the landlord is required to keep the deposit in a New York interest bearing bank account and give the interest to the Tenant when the Tenant vacates if he or she is entitled to the security deposit.