Security Deposit and Damage Deposit Rules in New York

As a renter in New York, understanding the laws around security deposits and so-called damage deposits can protect your rights and your finances. New York law treats "security deposits" and "damage deposits" as essentially the same—these are sums paid by a tenant to the landlord to cover unpaid rent or damage beyond normal wear and tear. Knowing the specific rules can help you feel confident during move-in, during your lease, and when you move out.

What Is a Security Deposit in New York?

In New York, a security deposit is money your landlord collects at the start of your lease. It acts as financial protection for the landlord in case of unpaid rent or property damage. Under New York State law, landlords cannot charge more than one month’s rent for a security deposit, regardless of the lease length.

• Maximum: One month’s rent.
• Must be held in a separate interest-bearing account for buildings with six or more units.
• Landlords must provide notice of the bank and deposit account location for eligible buildings.
• Security deposit cannot be labeled as an extra “damage deposit” or collected separately in addition to the security deposit.

If you’re asked for both a security deposit and a damage deposit, know that New York law treats these terms as one and enforces strict limits and protections.^[1]

How Are Security Deposits Handled?

New York’s Real Property Law § 7-108 outlines how landlords must manage, return, and communicate about security deposits:

• Security deposits are your money, held in trust by the landlord.
• For buildings with six or more apartments, your deposit must earn interest.
• Landlords must return the deposit within 14 days after you move out. Deductions for damage or unpaid rent must be explained in an itemized statement.
• If the landlord fails to provide this statement within the 14 days, they must return the entire deposit, regardless of alleged damages.
• Landlords cannot use the deposit for ordinary wear and tear.

Are Damage Deposits Legal in New York?

Some landlords may use the phrase "damage deposit," but New York law does not recognize or allow for deposits beyond the single security deposit. All forms of deposits for damages, cleaning, pets, or any other reason are treated as part of the single allowed security deposit. Charging double deposits or separate damage deposits is prohibited.^[2]

What Can Be Deducted from a Security Deposit?

Landlords may deduct only the following from your security deposit:

• Unpaid rent
• Repair costs for damage beyond normal wear and tear
• Unpaid utility bills if your lease requires you to pay them

Official Forms and Move-Out Steps

New York does not provide a required standard security deposit form, but documentation is key. Always obtain a written receipt for your deposit, keep copies, and take dated photos of the unit at move-in and move-out.

• Sample Security Deposit Receipt (Recommended): Ask your landlord for a signed receipt specifying the amount, the bank name, account number (if required), and the date. Use the NYC HPD sample receipt as a template.
• Itemized Statement of Deductions: Required from your landlord within 14 days of move-out if any money is withheld. There is no government form—this is a written document your landlord must create.

If your deposit or statement isn't returned, your main recourse is to file a claim in your local Housing Court or Small Claims Court.

Filing a Complaint About Your Security Deposit

The primary body handling residential tenancy disputes in New York is the New York State Division of Housing and Community Renewal (DHCR). However, most deposit disputes are handled at the local Housing Court.

• Contact DHCR for general landlord-tenant information or issues in rent-regulated apartments.
• File a Small Claims Court action if your deposit has not been properly returned.

For more information on the legal process and tenant protections, see the New York State Tenants' Rights Guide.

Frequently Asked Questions

1. Can my landlord keep my security deposit just because I broke the lease early?
   It depends. If your lease has an early termination clause and you owe rent, the landlord may deduct owed rent from your deposit. But they cannot keep the deposit without an itemized explanation.
2. How soon after I move out should I receive my deposit back?
   Your landlord must return your security deposit and an itemized statement of deductions within 14 days after you move out.
3. Can my landlord ask for a pet or cleaning deposit in addition to the security deposit?
   No. In New York, all deposits (including for pets, cleaning, or damages) must be included within the single security deposit limit (one month’s rent).
4. What if my landlord does not return the deposit or provide a statement?
   If you don’t receive your deposit or an itemized statement within 14 days, the landlord loses the right to withhold any of the deposit and must return it in full. You can file a claim in Small Claims Court if they don’t comply.
5. Who can help me if there's a deposit dispute?
   You can contact the New York State Division of Housing and Community Renewal (DHCR) for guidance, or file a claim with your local Housing Court.

Key Takeaways for New York Renters

• Only one security deposit is allowed—no separate damage or extra deposits.
• You are entitled to a written itemized statement for any deposit deductions within 14 days of moving out.
• Deposit disputes are mainly handled in Small Claims or Housing Court.

Staying informed helps protect your rights and your money when renting in New York.

Need Help? Resources for Renters

• NY State Division of Housing and Community Renewal (DHCR) – Office of Rent Administration
• NYC Housing Court – File a Security Deposit Claim
• New York State Tenants' Rights Guide (PDF)
• NYC Department of Housing Preservation & Development – Security Deposits
• For legal advice, consider reaching out to tenant advocacy organizations in your area.

---

1. New York State Real Property Law § 7-108. Full details here.
2. New York State Tenants' Rights Guide, p. 7-8. Official PDF.

Categories

Renter Rights & Legal Protections Lease Agreements & Renewals Rent, Fees & Security Deposits Moving In: Inspections & Disclosures Moving Out & Ending a Lease Maintenance, Repairs & Habitability Health & Safety Standards Evictions & Lease Violations Roommates, Subletting & Shared Housing Discrimination & Fair Housing Laws Accessibility & Disability Accommodations Utilities, Services & Billing Affordable Housing & Rental Assistance Rent Control & Rent Stabilization Privacy Rights & Landlord Entry Security, Locks & Emergency Protections Dispute Resolution & Legal Aid Retaliation & Harassment Protections Mobile Home & Manufactured Housing Rights Special Housing Types & Situations