Colonie, NY Rental Property Rules: Security Deposit Rules (2026)

Effective July 14, 2019, the HSTPA amended New York General Obligations Law §7-108 to cap residential security deposits statewide at one month's rent and to overhaul the return-of-deposit procedure. The cap applies to all residential leases entered into or renewed on or after July 14, 2019, regardless of whether the unit is rent-stabilized, market-rate, ETPA-covered, or in a town like Colonie that has not opted into rent stabilization. Real Property Law §238-a (also added by HSTPA 2019) separately caps non-deposit move-in fees: an application fee is limited to $20 (covering background and credit-check costs), and the landlord may not collect a separate move-in fee, key deposit beyond actual replacement cost, or rent-advance beyond the first month. Once the tenancy ends, GOL §7-108(1-a)(e) requires the landlord to return the deposit, less itemized deductions, within 14 days of the tenant's vacating, together with a written itemized statement of any damages claimed. If the landlord fails to provide the itemized statement and return within the 14-day window, the landlord forfeits the right to assert any deductions and must return the full deposit. The tenant has the right to be present at a pre-move-out inspection conducted between 1 and 2 weeks before the tenancy ends (GOL §7-108(1-a)(c)) and to a written statement of repair items the landlord intends to charge against the deposit. Willful violation exposes the landlord to a punitive damages remedy of up to twice the deposit amount, as the case law applying the HSTPA framework has begun to develop. Colonie's Town Code at ecode360.com/CO0290 does not modify or supplement this state-law framework, and Colonie Town Court enforces the statutory remedy as part of any landlord-tenant proceeding or in a tenant-initiated small-claims-court filing.