Security deposit rules in New York

In New York a landlord can collect a security deposit of no more than one month's rent, and must return it within 14 days after you move out, with an itemized statement for anything kept. Miss that 14-day deadline and the landlord loses the right to keep any of it.

These rules come from General Obligations Law §§ 7-103 and 7-108, as rewritten by the Housing Stability and Tenant Protection Act of 2019. They apply statewide, in NYC and everywhere else, to almost every residential rental. The landlord can't make you sign them away: the statute says any lease clause waiving these rights is "absolutely void."

How much a landlord can charge

GOL § 7-108(1-a)(a) says no deposit or advance may exceed one month's rent. The Attorney General's tenants' rights guide reads this to mean a landlord can't collect last month's rent in addition to a deposit. If your rent goes up at renewal or during the lease, the landlord may ask you to top the deposit up to the new monthly rent.

Two narrow exceptions exist: registered seasonal rentals of 120 days or less, and a co-op apartment occupied by its own shareholder. For what else a landlord can and can't charge at lease signing (application fee, broker fee, first month), see NYC move-in costs or total it up with the move-in cost calculator.

How the deposit must be held

Under GOL § 7-103, your deposit stays your money. The landlord holds it in trust and may not mix it with their own funds. That applies to every building, whatever its size.

The Attorney General says you choose whether the interest is paid to you every year, credited toward rent, or paid at the end of the lease. Its worked example: on a $1,000 deposit earning 1.5% ($15), the landlord keeps $10 (1% of the deposit) and you get $5. If bank rates are below 1%, you may get nothing. Use the security deposit calculator to estimate yours.

Inspections: before you move in and before you move out

The 2019 law added two inspections that protect you from surprise deductions.

For the move-out inspection, the landlord must tell you in writing, within a reasonable time after either side gives notice that the tenancy is ending, that you can request one. That duty doesn't apply if you give less than two weeks' notice.

What a landlord can deduct

Under GOL § 7-108(1-a)(b), a landlord may keep only amounts that are lawful, reasonable and itemized, for:

• unpaid rent,
• damage beyond normal wear and tear,
• unpaid utility charges that the lease makes payable directly to the landlord, and
• moving and storing belongings you left behind.

The landlord may not deduct for ordinary wear and tear or for damage caused by a previous tenant. In a dispute, the landlord must prove the amount kept was reasonable. A blanket "cleaning fee" or "repainting fee" with no itemized cost is the kind of deduction that is hard to justify.

When the building is sold

• The Attorney General says the seller must transfer deposits to the new owner within five days, or return them to tenants, and tell tenants the new owner's name and address by registered or certified mail.
• Under GOL § 7-108(2), a buyer who knows about your deposit is liable for it with interest, even if the seller never handed it over. The buyer is treated as knowing about it if the deposit was paid within six months before the closing, is acknowledged in a lease in effect at the sale, or you show documentary proof.
• If the new owner has no record of your deposit, it must notify you in writing within 30 days after closing. You then have 30 days to send proof, such as a canceled check, receipt or lease. If the owner never sends that notice, you can produce proof at any time.
• Buyers of rent-stabilized buildings are responsible for deposits and interest even if they never received them, according to the Attorney General.

If your building changed hands, the building sold guide covers your lease too.

Timeline of a deposit

1. Lease signing

   Pay no more than one month

   If the landlord deposits it in a bank, you get written notice of the bank and amount.

2. Before move-in

   Request the move-in inspection

   Sign a written list of existing damage. Keep a copy.

3. Each year

   Interest (6+ unit buildings)

   Paid to you, credited to rent, or held to the end, at your choice.

4. Notice to move

   Landlord tells you about the move-out inspection

   Unless you gave under two weeks’ notice.

5. 2 to 1 weeks before

   Move-out inspection

   Get the itemized list and fix what you can.

6. Within 14 days of move-out

   Deposit back

   Full refund or itemized statement plus the balance. Late means forfeit.

Penalties and how to enforce your rights

A landlord who breaks § 7-108 is liable for your actual damages. If the violation is willful, a court may add punitive damages of up to twice the deposit. You have two main routes:

• Complain to the Attorney General. The Attorney General directs tenants with unreturned deposits to its online Rent Security Complaint form (linked from its tenants' rights guide and the housing complaint options at ag.ny.gov/file-complaint), or call 1-800-771-7755. Try to settle it with the landlord first.
• Sue in Small Claims Court. You don't need a lawyer. See suing for your deposit in NYC Small Claims Court.

Before either, send a written demand. The step-by-step playbook, with evidence tips and a demand letter outline, is in how to get your security deposit back. To track deadlines, use the security deposit tracker.