Setting Security Deposit Amounts for Deregulated Apartments

Q I have a recently deregulated apartment. Is there any DHCR policy or other sort of agency determination guiding how much additional security deposit an owner can charge a tenant for a deregulated apartment?

A According to New York attorney Niles Welikson, there is no limit on the amount of security you can require for a deregulated apartment. When renting a deregulated apartment, it is especially important that both parties sign a comprehensive lease to avoid potential disputes regarding security deposits and length of tenancies, especially since there are no such guidelines required by rent-control or rent-stabilization laws anymore.

If the apartment had not been deregulated, and a rent-stabilized lease were renewed at a higher rental amount, or the rent were increased during the term of the lease, the owner could still collect additional money from the tenant to bring the security deposit up to the new monthly rent. And even though a tenant may be exempt from paying a lease increase because of his or her Senior Citizen Rent Increase Exemption (SCRIE) or Disability Rent Increase Exemption (DRIE), the tenant must still pay the increased security.