Most residential landlords require tenants to pay a security deposit to cover any repairs needed when the tenant moves out, or to cover the tenant’s failure to pay the last month's rent.

Laws vary from state to state, but many states have statutes that provide the maximum amount of security deposit a landlord may require for a residential lease and the costs for which the landlord may use the security deposit (cleaning, repairs, unpaid rent) following termination of the lease.

These laws also provide a specific deadline (often 30-60 days) for the landlord to return the tenant’s security deposit following termination of the lease—after deducting any amount properly withheld, as allowed by law.

In New York, residential landlords can require tenants to pay a security deposit, which is typically used to cover repairs for damage beyond normal wear and tear, or to cover unpaid rent. New York State law limits the amount of security deposit to the equivalent of one month's rent for most residential leases. Additionally, New York law requires landlords to return the security deposit within 14 days after the tenant has vacated the premises, along with an itemized statement if there are any deductions from the deposit for repairs or unpaid rent. If the landlord fails to adhere to this timeline, they may forfeit their right to keep any part of the deposit. It's important to note that New York City has additional regulations that may apply, including the requirement for landlords of buildings with nine or more units to place security deposits in interest-bearing accounts, and to pay the interest, minus administrative fees, to the tenant upon lease termination.