New York Lease Agreement: HSTPA Rules, 1-Month Deposit Cap, Bed-Bug Disclosure (2026)

What HSTPA changed for landlords statewide

HSTPA, signed by Governor Cuomo in June 2019 and effective in stages over the following 18 months, was the most significant overhaul of New York landlord-tenant law since the original rent-control regime of the 1940s. The act introduced statewide protections that previously applied only in rent-stabilised units or in specific localities. Many landlords accustomed to pre-2019 New York rules have had to relearn the framework from scratch.

The statewide changes most relevant to a typical residential lease are the security-deposit cap at Real Property Law section 238-a (one month maximum, 14-day return), the late-fee cap at RPL 238-a (lesser of 50 dollars or 5 percent), the screening-fee cap at General Obligations Law section 7-108(1-a) (20 dollars maximum, with required disclosure of the report), the source-of-income protection at New York State Human Rights Law section 296(5), and the sliding-scale notice requirements at RPL 226-c (30, 60, or 90 days depending on tenancy length, for both terminations and rent increases above 5 percent).

HSTPA also strengthened tenant rights in eviction. Real Property Actions and Proceedings Law section 711 requires the landlord to demand rent in writing 14 days before commencing a non-payment proceeding (the demand replaced the prior 3-day oral or 14-day written demand, with HSTPA standardising at 14 days written). Holdover proceedings against tenants of one or more years require longer notice. New York eviction timelines, already among the longest in the United States, were extended further by HSTPA.

For NYC landlords, HSTPA tightened the Rent Stabilization Code. High-rent vacancy deregulation was eliminated. Major Capital Improvement (MCI) and Individual Apartment Improvement (IAI) rent increases were capped and made temporary rather than permanent. Vacancy bonuses were eliminated. Preferential rent rules were tightened. Outside NYC, the Emergency Tenant Protection Act now permits any municipality with a vacancy rate below 5 percent to opt into rent stabilisation; several Hudson Valley municipalities have done so since 2019.

The one-month deposit cap and the 14-day return rule

Real Property Law section 238-a is the single most important statute for residential landlords statewide. It caps the security deposit, plus any advance payment beyond first month's rent, at one month of rent. The cap applies to all residential tenancies other than seasonal or vacation rentals. There is no carve-out for higher-income tenants, no carve-out for small landlords, and no carve-out for pets (a pet deposit beyond the one-month cap is unenforceable; landlords typically address pets through monthly pet rent rather than a deposit).

The 14-day return rule under RPL 238-a(2)(b) requires the landlord to deliver the deposit, plus an itemised statement of any deductions, within 14 days after the tenant vacates and returns possession. A landlord who fails to provide the itemised statement within 14 days forfeits the right to retain any portion. This rule is strict: courts have applied it to forfeit deductions where the landlord delivered the statement on day 15. Best practice is to begin the move-out inspection on the day of surrender and to mail the itemised statement within 7 to 10 days, leaving margin against the deadline.

Deductions are limited to: unpaid rent, damage caused by the tenant beyond normal wear and tear, and reasonable costs of returning the unit to the condition at the start of the tenancy (which excludes routine cleaning if the unit was not similarly cleaned at move-in). The statute does not provide a statutory definition of normal wear and tear; New York case law treats it as deterioration that occurs without the tenant's negligence or abuse. Routine carpet wear, minor scuffs on walls, and faded paint after a long tenancy are not deductible.

The landlord must offer the tenant the right to a joint inspection of the unit within a reasonable time before the end of the tenancy (typically within the final two weeks), and must provide a written list of any defective conditions to the tenant during the inspection. The list serves as the baseline against which move-out condition will be compared. Tenants who participate in the joint inspection have stronger positions in subsequent deposit disputes.

Required disclosures: bed bugs, lead paint, window guards, fire safety

New York layers state and city disclosure requirements on top of the federal lead-based paint rule. The federal rule (24 CFR Part 35) applies to all pre-1978 units. In addition, New York City Local Law 1 of 2004 imposes additional lead-paint inspection and remediation obligations on landlords of multiple dwellings with children under 6 in residence.

The bed-bug disclosure under Multiple Dwelling Law section 27-2018.1 and the related NYC Administrative Code provisions require landlords of multiple dwellings (three or more units) to provide bed-bug infestation history disclosure annually to existing tenants and at lease signing to new tenants. The disclosure must be on DHCR Form HCR-129 (or substantially the same form). The disclosure covers infestations within the year preceding the lease signing or annual renewal. Failure to provide the disclosure can give the tenant a defence to certain rent claims and may expose the landlord to civil penalties under NYC enforcement.

Window guard disclosure under New York City Health Code section 131.15 requires landlords of multiple dwellings to install and maintain window guards in any apartment with a child under 11. The lease (or a rider) must include a notice informing the tenant of the requirement and asking the tenant to state whether children under 11 reside in or visit the unit frequently. The notice must be on the form prescribed by the NYC Department of Health.

Fire-protection plan disclosure under NYC Local Law 5 of 1973 and Local Law 87 of 2009 requires owners of multiple dwellings to develop a fire-safety plan, provide notice to tenants, and post information in common areas. The notice is included in the lease or attached as a rider. Sprinkler-system disclosure under NYC Admin Code section 27-2045 requires a written notice in every lease of whether the dwelling has a sprinkler system. Carbon-monoxide detector disclosure under Real Property Law section 235-bb requires the landlord to maintain functioning detectors and to advise tenants of the requirement.

Notice periods, eviction, and the post-HSTPA timeline

Real Property Law section 226-c, enacted by HSTPA, replaced the old 30-day notice rule with a sliding scale. For tenancies of less than one year, the landlord must give 30 days written notice of non-renewal or rent increase above 5 percent. For tenancies of one to two years, the notice is 60 days. For tenancies of more than two years, the notice is 90 days. The same notice periods apply to month-to-month tenancies and to non-renewal of fixed-term leases. The tenant must give 30 days notice to terminate a month-to-month tenancy.

Non-payment eviction under RPAPL 711 requires the landlord to serve a 14-day written demand for rent before commencing a summary proceeding. The demand was lengthened from the prior 3-day oral or 14-day written rule by HSTPA, which standardised at 14 days written. After the 14 days expire and the rent remains unpaid, the landlord files a non-payment petition in housing court. Average non-payment timelines in NYC housing court ran 8 to 24 weeks pre-pandemic and have lengthened since 2020 due to court backlog. Outside NYC, timelines are typically 6 to 12 weeks.

Holdover eviction (eviction without alleging non-payment) requires the appropriate RPL 226-c notice before the landlord files a holdover petition. For rent-stabilised units, the landlord may not commence a holdover except for specific permitted grounds (non-primary residence, owner occupancy, demolition, withdrawal from the rental market, breach of substantial lease obligation). For non-stabilised units, the landlord generally needs only the RPL 226-c notice plus any cause-based grounds the lease requires.

For step-by-step notice templates, see the eviction notice page.

Sample New York-specific clauses

Security deposit clause (RPL 238-a)

Late fee clause (RPL 238-a cap)

Bed-bug disclosure (use DHCR Form HCR-129 for multiple dwellings)

NYC layer: rent stabilisation, MCI, IAI, succession

New York City rent stabilisation covers approximately one million apartments and is administered by the Division of Housing and Community Renewal. Stabilised units are subject to annual rent-guideline-board increases (typically 2 to 4 percent in recent cycles), succession rights for family members, restrictions on lease termination, and detailed registration and reporting requirements. Renting a stabilised unit on a standard private-lease template without a DHCR-compliant rider is a fast path to violations.

Major Capital Improvements (MCIs) and Individual Apartment Improvements (IAIs) are the two mechanisms by which a stabilised landlord may permanently or temporarily raise rent above the guideline increase. HSTPA capped MCI increases at 2 percent per year (down from 6 percent), made them temporary (30 years rather than permanent), and tightened the audit process. IAI increases were capped at 15,000 dollars over 15 years per unit. These caps materially changed the economic model for many stabilised buildings and continue to be litigated.

Outside NYC, the Emergency Tenant Protection Act permits municipalities with a vacancy rate below 5 percent to opt into rent stabilisation. Newburgh, Kingston, Poughkeepsie, and several other Hudson Valley municipalities have opted in since HSTPA. Landlords in those jurisdictions face the same stabilisation framework as NYC landlords. Verify your municipality's status before applying generic state rules.

How New York sits

New York is the strictest major state for residential leases, with the shortest deposit return window (14 days), the strictest deposit cap (one month, all units), and the most extensive disclosure regime. California is broadly comparable on caps but allows 21 days for return and has a more layered just-cause framework. Texas and Florida are at the opposite end of the spectrum. See the California page for the closest comparator, the Texas page for the permissive contrast, the state hub for the full table, and the 50-state deposit comparison for side-by-side.

Frequently Asked Questions

Sources

• Real Property Law section 238-a (security deposit and late fees, HSTPA): nysenate.gov
• Real Property Law section 226-c (notice of non-renewal or rent increase, HSTPA): nysenate.gov
• Real Property Actions and Proceedings Law section 711 (summary proceedings): nysenate.gov
• Multiple Dwelling Law section 27-2018.1 (bed-bug disclosure): nysenate.gov
• NYS DHCR Bed Bug Disclosure Form HCR-129: hcr.ny.gov
• NYS Attorney General Tenants' Rights Guide: ag.ny.gov
• EPA lead-based paint disclosure: epa.gov/lead