As we all know, the Housing Stability and Tenant Protection Act (HSTPA) of 2019 placed a limit on how much security deposit a landlord in NY can collect from a tenant (the equivalent of one month’s rent).
However, on September 20, 2021, Governor Hochul signed an amendment to the HSTPA which would exempt landlords of ‘seasonal dwelling units’ from this cap. This amendment will have a profound impact on landlords of such seasonal dwellings who have faced a greater level of liability over the past few years due to the 2019 restrictions.
Landlords of seasonal rental homes, such as in Fire Island or the Hamptons, can now collect multiple months’ worth of security deposit upon lease signing, which allows them to better protect themselves in the event of damages or liability caused by tenants.
In order to qualify as a ‘seasonal dwelling unit’, the property must meet conditions, including but not limited to the below:
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- The lease provides that the dwelling unit is registered as a seasonal use dwelling unit, indicating the local or county government agency with which it is registered.
- The occupancy of the tenant is only for seasonal use, not to exceed one hundred twenty days. or a shorter period provided for in the lease.
- The tenant has a primary residence where they will return post-rental and this address is expressly listed in the lease.
This amendment has certainly been met with widespread approval from landlords, as it signals that the new administration in Albany is willing to soften some of the draconian regulations imposed on landlords as a result of the 2019 HSTPA.
If you or a client are in need of guidance to comply with the regulations governing seasonal rentals, please do not hesitate to reach out and our team will be glad to assist.
David is an associate of the Landlord/Tenant practice area at Chaves Perlowitz Luftig, LLP. David is licensed in New York.