New York Security Deposit Laws: What Renters Need to Know

Security deposits are a common part of renting an apartment in New York, but many tenants aren't sure about their rights or what landlords can legally deduct. Knowing the security deposit laws in New York can help you get your money back and avoid disputes at the end of your lease.

Your Rights and Protections for Security Deposits in New York

In New York, tenant protections around security deposits were strengthened by the Housing Stability and Tenant Protection Act of 2019. These rules apply to nearly all leases, whether you're in New York City or elsewhere in the state.

• Maximum Security Deposit: Landlords cannot charge more than one month's rent as a security deposit.
• Deposit Handling: Landlords must hold security deposits in a separate account. For buildings with 6+ units, the deposit must be in an interest-bearing New York bank account, with the tenant entitled to annual interest minus a small administrative fee (no more than 1%).
• Written Receipt: Landlords must provide a written receipt for the deposit if requested, including the bank’s name and address.
• Return Deadline: Landlords must return the deposit (with an itemized statement of any deductions) within 14 days after you move out.

When Can a Landlord Keep Your Security Deposit?

According to New York Real Property Law Section 7-108, your landlord can only make deductions for:

• Unpaid rent
• Damage beyond normal wear and tear
• Unpaid utility bills (if required by the lease)

They cannot deduct for minor scuffs, nail holes, or ordinary cleaning.

Move-Out Inspections and Procedures

New York law gives tenants the right to request a move-out inspection. Here’s how it works:

• Tenants may ask for an inspection no sooner than two weeks before the end of the lease.
• The landlord must give at least 48 hours’ written notice of the inspection date.
• Tenants can correct the listed damages before moving out to avoid deductions.

Official Forms: Move-Out Inspection and Security Deposit Return

• Move-Out Inspection Checklist (No official statewide form or number): Used by landlords to note damages before the lease ends. As a tenant, ask your landlord for this checklist or bring your own to document the unit’s condition. For reference and guidance, see NYS Tenant Rights Guide.
• Itemized Statement of Deductions (No official form number): The landlord must provide this written list if they deduct anything from your deposit. If you do not receive it within 14 days of moving out, the landlord forfeits the right to make any deductions.

If Your Security Deposit Is Not Returned or Disputed

If you don’t receive your deposit or the deductions are unfair, you have options:

• Contact your landlord in writing to request an explanation and itemized statement.
• If this doesn’t resolve the issue, you can file a small claims case (for amounts up to $10,000) in your local Housing Court or Civil Court.

Relevant Tribunal: Housing Court / Civil Court

Residential tenancy disputes in New York, including those about security deposits, are usually handled by New York City Housing Court for NYC or local Civil Courts for other areas.

FAQ: New York Security Deposit Laws for Renters

1. Can my landlord ask for more than one month's rent as a security deposit?
   No. Under New York law, the maximum allowable security deposit is one month’s rent.
2. How long does my landlord have to return my deposit in New York?
   Your landlord must return your security deposit within 14 days of you moving out, along with a written statement of deductions if applicable.
3. What should I do if my landlord keeps my security deposit unfairly?
   First, write to your landlord asking for the deposit or an explanation. If you’re not satisfied, you can file a claim in Housing Court or Small Claims Court.
4. Can my landlord deduct for normal wear and tear?
   No. Landlords can only deduct for damage beyond normal wear and tear, not for routine cleaning or minor marks.
5. Do I get interest on my security deposit?
   If your building has six or more units, your security deposit must be held in an interest-bearing account, and you’re entitled to the interest earned (less up to 1% for administration).

Key Takeaways for New York Renters

• Security deposits are strictly regulated—maximum one month’s rent and timely return required.
• Always document the apartment’s condition at move-in and move-out.
• If there’s a dispute, you have formal processes available for resolution.

Understanding your tenant protections helps prevent misunderstandings and ensures fair treatment for all parties.

Need Help? Resources for New York Renters

• New York State Tenant Rights Guide (PDF)
• New York State Homes and Community Renewal – Renter Protections
• NYC Housing Court – Information for Tenants
• NYC 311: Tenant Support & Complaints

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1. New York Real Property Law § 7-108 (Security Deposits)
2. NYS Tenant Rights Guide (2023)
3. NYS Homes and Community Renewal: Renter Protections
4. NY Courts – Housing Court Statutes and Information

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