Tenant rights in New York: deposits, rent limits, good cause

Security deposits

Under General Obligations Law § 7-108, a landlord cannot ask for a deposit or advance larger than one month’s rent. The cap does not apply to seasonal-use units or to owner-occupied cooperative apartments, and units under city rent control are outside the rule.

Within 14 days after you move out, the landlord must give you an itemized statement explaining any part kept and return the balance. If the landlord misses the 14-day deadline for either step, the landlord loses the right to keep any part of the deposit. A landlord who violates the rule owes actual damages, and a willful violation can add punitive damages of up to twice the deposit.

Example. On a $3,000 monthly rent, the most a landlord may collect as a deposit is $3,000. If you move out on June 30, the statement and the refund are due by July 14.

Rent stabilization in New York City

Rent stabilization generally covers buildings built after 1947 and before 1974, apartments removed from rent control, and buildings that receive J-51, 421-a or 421-g tax benefits (DHCR Fact Sheet #1). Stabilized tenants can choose a one- or two-year renewal, are entitled to required services, and may be evicted only on grounds the law allows.

The 2019 Housing Stability and Tenant Protection Act (HSTPA) removed the statutory vacancy increase and repealed deregulation based on high rent or high income. It also lengthened the rent history review and overcharge collection periods from four to six years. A willful overcharge can bring treble damages.

The Rent Guidelines Board sets the lease increases each year. Recent orders (RGB chart):

The Order #58 vote is the current rule: a 0% increase on both one- and two-year leases that start on or after October 1, 2026 and by September 30, 2027. The rate applies to vacancy and renewal leases alike. Separate, lawful increases for individual apartment improvements or building-wide capital improvements may still be added, and DHCR caps major capital improvement increases at 2% a year (Fact Sheet #26).

Example. A stabilized tenant paying $2,500 who renewed a one-year lease in the 2025-26 period paid up to $75 more at 3.0%. A one-year renewal starting November 1, 2026 carries a guideline increase of $0.

Good Cause Eviction

The Good Cause Eviction law (Real Property Law Art. 6-A) was signed on April 20, 2024 and applies in New York City (§ 212). It gives covered tenants two protections: a landlord can remove a tenant only for a listed “good cause,” and a rent increase above the “local rent standard” is presumed unreasonable.

The rent standard. The standard is the lower of 10% or 5% plus the annual change in the Consumer Price Index (§ 211). For New York City, DHCR’s August 2026 notice gives the CPI change from 2024 to 2025 as 3.38%, so the standard is 8.38%. On a $3,000 rent, an increase above about $251 a month is presumed unreasonable. The landlord can try to rebut the presumption.

Grounds for removal include nonpayment, a substantial lease violation not cured within 10 days of notice, nuisance, illegal use, refusing access for repairs, and a landlord’s good-faith need of the unit as a principal residence, demolition, or withdrawal from the rental market (§ 216).

Who is not covered (§ 214). Exemptions include:

• Small landlords (no more than ten units in the state) and owner-occupied buildings of ten units or fewer.
• Units already under rent or eviction regulation, including rent-stabilized apartments.
• Condominium and co-op units.
• Housing with a certificate of occupancy issued on or after January 1, 2009, for 30 years.
• Units whose rent is above 245% of HUD fair market rent. DHCR’s 2026 table puts that threshold at $6,505 for a one-bedroom and $7,130 for a two-bedroom in Manhattan.

If you buy a building with stabilized tenants

Plan on the tenants staying: DHCR says stabilized tenants have renewal rights and may be evicted only on grounds the law allows. Before you close, ask for the following:

• Rent registration history for each unit. Owners must file annual registrations by July 31, and the fine is $500 per unregistered unit for each month late (DHCR). Registration histories are available at rent.hcr.ny.gov.
• Lease riders showing how each rent was calculated, including any individual apartment improvements. Tier 1 improvements are capped at $30,000 per apartment (Fact Sheet #26).
• Preferential rents. If a tenant pays less than the legal rent, you can raise the rent only by the guideline adjustment on the preferential amount. The higher legal rent can be collected only after a new tenant moves in.
• Overcharge exposure. Tenants can seek refunds for up to six years, plus treble damages if willful (Fact Sheets #1 and #16).
• HPD building registration. New York City owners of multiple dwellings must register annually with HPD.

Do not underwrite deregulation: HSTPA repealed the high-rent and high-income routes. A New York real estate attorney can review the registrations before you sign.