Property Management

Under New York General Obligations Law section 7-108, security deposits for residential tenancies must be:

APlaced in an interest-bearing account in a New York bank and the tenant must be notified✓ Correct
BHeld in the landlord's personal checking account
CLimited to two months' rent regardless of the length of the lease
DReturned within 14 days of the tenant's departure, with no withholding permitted

Explanation

New York General Obligations Law section 7-108 requires landlords of buildings with six or more units to deposit security deposits in a bank in New York State in an interest-bearing account. The landlord must provide the tenant with written notice of the bank's name and address. The HSTPA of 2019 also capped security deposits at one month's rent.

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