New York Security Deposit Law - Best Guide (2026)

By Oleg Kachko · Updated June 10, 2026

✓ Law Verified June 2026

This guide explains new york security deposit law in plain English — how much your landlord can charge, when they must return it, what they can and cannot deduct, and what to do if they do not give it back. All figures are from New York law, verified as of June 2026.

In This New York Guide:

Key Rules
Allowable Deductions
How to Get It Back
Official Sources

New York Security Deposit Rules at a Glance

Maximum deposit	1 month’s rent (no additional pet deposits, last-month’s rent, or move-in fees allowed beyond this cap; enacted statewide by the Housing Stability and Tenant Protection Act of 2019, GOL 7-108(1-a)(a))
Return deadline	14 (the landlord must return the deposit or remaining balance with an itemized statement within 14 calendar days after the tenant vacates, per GOL 7-108(1-a)(e))
Itemized deductions required	YES — the landlord must provide a written itemized statement specifying each deduction, the reason for each deduction, and the dollar amount; this statement must accompany the return of any remaining deposit within the 14-day deadline; failure to provide it causes the landlord to forfeit the right to retain any portion of the deposit (GOL 7-108(1-a)(e))
Interest on deposit required	YES for buildings with 6 or more units — the landlord must place the deposit in an interest-bearing account at a New York banking organization, notify the tenant of the bank name and address, and pay the tenant the full annual interest earned minus 1 percent of the deposit per year as an administrative fee (GOL 7-103); for buildings with fewer than 6 units, interest is not statutorily required
Penalty for late/bad-faith return	If the landlord fails to provide the itemized statement and deposit within 14 days, the landlord forfeits the right to retain any portion of the deposit (GOL 7-108(1-a)(e)); if the violation is found to be willful, the landlord may be liable for punitive damages of up to twice the amount of the deposit (GOL 7-108(1-a)(f)); many tenants recover the full deposit plus up to 2x punitive damages in small claims court

Move-in/move-out walkthrough: MOVE-IN only — after the lease is signed but before the tenant begins occupancy, the landlord must offer the tenant the opportunity to inspect the premises together; if the tenant requests the inspection, both parties must execute a written agreement attesting to the condition of the property before occupancy begins (GOL 7-108(1-a)(b)); a move-out walkthrough is not currently required by statute

Separate deposit account: YES — the deposit must be held in trust for the tenant and cannot be commingled with the landlord’s personal funds; for buildings with 6 or more units, it must be deposited in an interest-bearing account at a New York banking organization, and the landlord must notify the tenant in writing of the bank name and address (GOL 7-103, GOL 7-108)

What Your Landlord Can and Cannot Deduct in New York

Unpaid rent owed under the lease; damage caused by the tenant beyond normal wear and tear; unpaid utility charges payable directly to the landlord under the lease; moving and storage costs for tenant’s abandoned belongings; landlords may NOT deduct for ordinary wear and tear, damage caused by a prior tenant, or routine cleaning absent damage beyond normal use (GOL 7-108(1-a)(d))

Normal wear and tear vs damage: New York law distinguishes normal wear and tear (the natural deterioration from ordinary day-to-day use of the premises, such as minor scuff marks, small nail holes, faded paint, or worn carpet) from tenant damage (deterioration caused by the tenant’s negligence, carelessness, or abuse, such as large holes in walls, broken fixtures, stained or burned carpeting, or unauthorized alterations); the burden of proof is on the landlord to show damage exceeded normal wear and tear (GOL 7-108(1-a)(g))

How to Get Your Deposit Back in New York

The burden of proof is on the landlord to show deductions were reasonable (GOL 7-108(1-a)(g)); tenants may send a written demand letter to the landlord requesting the full deposit back with a deadline; if the landlord does not comply, tenants may file in Small Claims Court (up to 10000 in New York City, up to 5000 outside NYC) to recover the deposit; tenants in NYC may also raise deposit claims in Housing Court; tenants may file a complaint with the New York Attorney General’s Housing Protection Unit; for amounts exceeding small claims limits, tenants may file in regular civil court; many tenants successfully recover their deposit plus punitive damages when the landlord cannot produce receipts, invoices, or photographs proving the deductions

Other New York deposit rules: New York’s 2019 HSTPA extended the one-month deposit cap to ALL residential rentals statewide, not just rent-stabilized units; landlords cannot charge pet deposits, cleaning fees, key deposits, or last-month’s rent on top of the one-month security deposit; the landlord bears the burden of proof in any dispute over deductions, not the tenant; the pre-occupancy inspection provision (where the landlord must offer a joint walkthrough and written condition agreement before move-in) is a strong tenant protection — tenants should always request this inspection and keep the signed agreement as evidence; rent-stabilized tenants have additional protections under GOL 7-107; seasonal-use dwellings and owner-occupied co-ops have different rules under GOL 7-108 subdivisions 4-6

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Official New York Sources & Resources

New York Attorney General: https://ag.ny.gov/resources/individuals/tenants-homeowners/tenants/recovering-rent-security-deposits-and-interest
New York Security Deposit Statute: https://www.nysenate.gov/legislation/laws/GOB/7-108
U.S. Department of Housing and Urban Development: hud.gov
Cornell Legal Information Institute: law.cornell.edu/wex

Understanding New York Security Deposit Law

Your New York security deposit is your money until the landlord proves a lawful deduction. New York security deposit law sets clear limits on how much can be charged, what can be deducted, and when the balance must be returned. If your landlord misses the New York security deposit return deadline or takes deductions that are not allowed, you may be entitled to penalties.

Document the condition of your unit at move-in and move-out — photos are the best protection for your New York security deposit.

This New York security deposit guide was last verified against official sources in June 2026. Laws change — verify with your state or a local legal-aid office.

More New York Tenant Rights Guides

Disclaimer: This guide is informational only and is not legal advice. Landlord-tenant laws change and vary by city and county within a state. Verify current rules with your state, your local court, or a free legal-aid office before acting. If you are facing eviction, contact a local tenant attorney or legal-aid organization right away.

Renting? Protect your belongings — compare renters insurance at Home Insure Guide. Divorce involving a lease? See Divorce Help Guide. Unsafe housing / toxic mold injury? Some cases qualify — see Mass Tort Info.

New York Security Deposit Law — Limits & Deadlines (2026)