New York rewrote its deposit rules in the Housing Stability and Tenant Protection Act of 2019. General Obligations Law § 7-108 now caps deposits at one month’s rent, requires inspections, and gives the landlord 14 days after the tenant leaves to return the balance with an itemised statement. Missing that deadline costs the landlord the right to keep any of the deposit. This guide is general information, not legal advice.
| Rule | What it requires |
|---|---|
| Cap | One month’s rent |
| Inspections | Tenant must be offered an inspection at move-in and before move-out |
| Return deadline | 14 days after the tenant vacates, with an itemised statement of deductions |
| Missed deadline | Landlord forfeits the right to keep any portion of the deposit |
| Buildings with 6+ units | Deposit held in an interest-bearing account, with interest paid or credited to the tenant |
| Wilful violation | Punitive damages up to twice the deposit |
One month, and how it is held
A landlord may not take a deposit or advance payment of more than one month’s rent. The deposit remains the tenant’s money. In buildings with six or more units, it must be held in an interest-bearing account in a New York bank, the tenant must be told the bank’s name and address and the amount, and the interest, less a 1% administrative fee the landlord may keep, belongs to the tenant.
The inspections
Before the tenant moves in, the landlord must offer an inspection to agree the unit’s condition, and the parties can sign a written agreement recording it. Before the tenant moves out, the landlord must notify the tenant in writing of the right to request an inspection, to be held about a week to two weeks before the end of the tenancy, with the tenant present. The landlord then gives an itemised list of proposed deductions so the tenant can fix the problems before leaving.
The 14-day statement
Within 14 days after the tenant vacates, the landlord must give the tenant an itemised statement of the reasons for any deduction and return the rest. Deductions are limited to unpaid rent, damage beyond ordinary wear and tear, unpaid utility charges payable to the landlord under the lease, and the cost of moving and storing belongings the tenant left behind.
New York courts apply the deadline strictly: a landlord who does not provide the statement and the balance within 14 days forfeits the right to keep any part of the deposit. A landlord who wilfully violates the section can also be ordered to pay punitive damages of up to twice the deposit.
Rent-stabilised and New York City units
Rent-stabilised apartments follow the same one-month cap and the same return rules. New York City has its own agencies and procedures for disputes, and many buildings with six or more units fall under the interest-bearing account requirement. Check local rules for your building.
A checklist
Take no more than one month’s rent. Offer the move-in inspection and record the result. Send the written notice of the move-out inspection right to every tenant before the lease ends. Return the balance with an itemised statement within 14 days of move-out, with evidence for each deduction. The move-in and move-out checklist covers both inspections. For New York receipts, see New York rent receipt law; for other states, security deposit return deadlines by state.
This article is general information, not legal advice. Rental rules change and vary by jurisdiction; check the current law or consult a local lawyer before acting on it.
Common questions
How much security deposit can a New York landlord charge?
No more than one month’s rent, under General Obligations Law § 7-108.
How long does a New York landlord have to return a deposit?
14 days after the tenant vacates, with an itemised statement of any deductions.
What happens if a New York landlord misses the 14 days?
The landlord forfeits the right to keep any portion of the deposit, and wilful violations can lead to punitive damages of up to twice the deposit.
Does a New York landlord have to pay interest on a deposit?
In buildings with six or more units, the deposit must be held in an interest-bearing account and the interest, less a 1% fee, belongs to the tenant.
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