Property Management

In New York City, a landlord who collects more than one month's rent as a security deposit (from a tenant in a market-rate apartment) is:

APermitted to do so for market-rate units
BViolating the Housing Stability and Tenant Protection Act of 2019, which limits all residential security deposits to one month's rent✓ Correct
COnly permitted if the lease term is over 2 years
DNot restricted on security deposit amounts

Explanation

The HSTPA (2019) capped residential security deposits at one month's rent for all residential rentals statewide—market-rate and rent-stabilized alike. Prior to 2019, market-rate landlords could collect up to one month per year of the lease term.

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