New York Security Deposit Law: Return Deadline, Limits, and How to Get It Back

In New York, your landlord generally cannot charge more than one month's rent as a security deposit, and must return what is owed within 14 days after you move out. If the landlord keeps any part of it, they must give you an itemized statement describing each deduction and the cost. These rules were tightened statewide by the Housing Stability and Tenant Protection Act of 2019 and live mainly in New York's General Obligations Law, Article 7 (sections 7-101 through 7-108). Because landlord-tenant law changes and New York City and some counties layer on extra protections, confirm the current rule for your situation before you rely on it.

How much can a New York landlord charge?

Since 2019, the deposit on most residential rentals is limited to no more than one month's rent. A landlord also generally cannot demand a separate "last month's rent" on top of a full month's deposit, because the combined upfront money is capped at one month. A few categories of housing can have different rules, so a tenant facing an unusual demand should check whether their unit is covered.

• The one-month cap applies to the deposit itself, not to ordinary first-month rent.
• Pet deposits, "move-in fees," and similar add-ons can run into the same cap problem; ask what each charge is for in writing.
• If you already paid more than one month before the rule changed and are renewing, ask about getting the excess back.

The 14-day return deadline and itemized statement

After you give up possession of the apartment, the landlord has 14 days to return the deposit, minus any lawful deductions. If money is withheld, the landlord must provide an itemized statement showing the basis for each charge. Miss the deadline and the consequences are real: under New York law, a landlord who fails to provide that itemized statement within 14 days generally forfeits the right to keep any of the deposit, even for damage that might otherwise have been deductible.

• The clock runs from when you actually move out and return the keys, not from the lease's last calendar day.
• Give the landlord a forwarding address in writing so there is no excuse for not mailing your money or statement.
• New York also gives tenants the right to request a pre-move-out walkthrough inspection so problems can be identified (and possibly fixed) before you leave.

What can and cannot be deducted

A landlord may deduct for unpaid rent and for the reasonable cost of repairing actual damage the tenant caused beyond normal wear and tear. The key distinction is that ordinary aging from everyday living is not chargeable to you.

• Usually deductible: unpaid rent, large holes in walls, broken fixtures or appliances damaged by misuse, removal of trash or belongings you left behind, cleaning beyond ordinary cleaning.
• Not deductible (normal wear and tear): minor scuffs, small nail holes, faded or lightly worn paint and carpet, and general aging from reasonable use over the life of the tenancy.
• Routine repainting and carpet cleaning between tenants is generally the landlord's cost of doing business, not a deduction from your deposit.

Does the deposit earn interest?

It depends on the size of the building. In buildings with six or more apartments, the landlord must place your deposit in an interest-bearing account in a New York bank and pay you the interest each year, less an administrative fee of up to 1%. In smaller buildings, interest is generally not required, but the deposit still must be kept separate and remains your money, not the landlord's to spend.

• Your deposit is held in trust for you; it is not the landlord's income while you live there.
• If the building is sold, the deposit and any interest are supposed to be transferred to the new owner, who becomes responsible for returning it.

Penalties and how to sue in small claims

If a landlord willfully violates the deposit rules, New York law allows a court to award the tenant up to twice the amount of the deposit as damages. The everyday tool for recovering a wrongfully withheld deposit is Small Claims Court, which in New York operates as a part of the New York City Civil Court, the District Courts on Long Island, and City Courts elsewhere; town and village courts handle small claims in many other areas.

• The small claims limit is generally $10,000 in New York City and city courts, and lower (often $5,000 or $3,000) in town and village courts.
• Before filing, send a clear written demand to the landlord stating the amount owed and a deadline; keep a copy.
• Bring your lease, photos from move-in and move-out, receipts, the itemized statement (or proof none was sent), and your forwarding-address proof.
• If the dispute is large, the facts are tangled, or you may be entitled to double damages, a New York tenant attorney or a local legal aid office is worth a call, especially since many areas have free housing-help programs.

This is general legal information, not legal advice. New York's rules can change and local ordinances in places like New York City may add protections, so confirm the current statute or speak with a New York landlord-tenant attorney about your specific facts.