Security deposit increase for NYC lease renewal

[Linda M.]

Hi everyone, I am a first-time landlord in the process of renewing the lease with my current tenants. The rent will be increasing by $100 and I'm just wondering if it's fine to request a check for the additional $100 security deposit or if I need to withdraw and return the current security deposit and request a check for the new amount?  I was seeing information online that suggested both routes...

Thanks in advance for the help!

[Mohammed Rahman]

Hi there,

As a first-time landlord in NYC, it's great that you're being cautious about this. Here's the deal: You don't need to withdraw and return the current security deposit just to collect the additional $100. You can simply request a separate check for the $100 increase to bring the total deposit in line with the new rent amount. This is a straightforward and common approach.

However, make sure to document the change in the lease renewal or addendum, specifying the new security deposit amount. Also, ensure you're compliant with New York's security deposit laws, which cap deposits at one month's rent. If your current deposit already equals one month's rent, you can't request additional funds.

Keep the lines of communication open with your tenants, explain the process clearly, and you'll avoid any misunderstandings.

Good luck!