Collecting First, Last, Security

[Amy Zemser]

Hello Landlords, 

I have a student rental in upstate NY and had a question about early security deposits. Students are on an academic calendar, and I always secure my students/tenants during the month of February for a June-June rental. Students always secure their off-campus housing for the upcoming academic year in February, so advertising early is a must. If students bail on a lease in May or June, I will not be able to fill the rental. 

I usually collect first month, last month, and a security deposit a full three months before the move-in date. In the past I have taken a non-refundable $500 to secure the rental. I do worry, however, about students backing out last-minute, and was wondering how much of a deposit is legal to keep as a good faith on renting the property. Can I simply deposit the entire first/last/security and tell them this amount is non-refundable if they back out in June? 

Thank you and all best.