Deposits and payments for a sublet in NYC
A sublet in New York is a residential tenancy, so the state deposit rules apply: the security deposit may not exceed one month's rent, the renter may ask for a move-in inspection, and the deposit must be returned within fourteen days of moving out with an itemised statement for any deduction. Pay the deposit and the first month on signing, by a method that leaves a record, against a written receipt; never in cash, never by wire to someone you have not met.
Reviewed October 28, 2026 by the SubletNY team against the sources listed at the end.
The deposit
One month's rent is the cap. A lister may not take "first, last and security" as three separate months on top of the deposit cap; a last month paid in advance is rent, not deposit, and should be written as such. The agreement should say what the deposit may be used for (unpaid rent, damage beyond ordinary wear, cleaning beyond what was agreed) and that it comes back within fourteen days with an itemised statement.
How to pay
Bank transfer to an account in the lister's name, or a payment app in goods-and-services mode, both with a note stating the apartment and the month. Ask for a written receipt for every payment, with the date, the amount, what it covers and both names. Keep screenshots. Cash leaves no record; wire transfers and gift cards cannot be recalled.
Rent during the stay
Agree the due date and the method in writing. A sublet rent is normally paid monthly in advance; for stays under two months some listers ask for the whole stay on signing, which is acceptable once you have seen the apartment and signed. Utilities, if not included, are paid against the actual bill, not a round number.
Moving out
Do a walk-through together with the move-in photos, hand over the keys, give a forwarding address, and diarise fourteen days for the deposit. If it does not arrive, write once asking for it with the itemised statement the law requires; small claims court handles the rest. This guide is general information from public sources, not legal advice; for a dispute, speak to a tenant lawyer or a tenant association.
