A security deposit is money that a tenant, their Effective June 11, 2025, the Fairness in Apartment
guarantor or other third-party deposits with the Rental Expenses (FARE) Act prohibits brokers who
owner of the apartment for the repair of any represent landlords from charging broker fees to
damages to the apartment for which the tenant is tenants. This includes brokers who publish listings
responsible. with the landlord’s permission. Landlords or their
agents must disclose other fees that the tenant
The Housing Stability and Tenant Protection Act must pay in their listings and rental agreements.
(HSTPA) of 2019 limits the amount of a security The NYC Department of Consumer and Worker
deposit for any apartment to one month’s rent. It Protection (DCWP) will enforce this law. Any
is unlawful for the owner to ask for an additional person who violates this act would be subject
amount of money from the tenant, guarantor or to a civil penalty or civil action. DHCR retains its
third party. If two months’ security deposit was jurisdiction as well, over rent stabilized apartments.
collected from a tenant by the owner when the
apartment first came under rent stabilization, and DHCR may determine that a rent overcharge
the same tenant is still occupying the apartment, was collected if it is found that a building owner,
the owner must refund to the tenant any additional property manager, and their agents or employees
security deposit which exceeds one month’s rent. collected a broker’s fee for the rental of a unit
The next rent stabilized tenant cannot be required they own or manage. A company and a real
to deposit more than one month’s rent as security estate broker or salesperson are also prohibited
deposit. The tenant can file a “Tenant’s Complaint from collecting a broker’s fee