Your Security Deposit Rights in New York

A New York landlord can charge a security deposit of no more than one month's rent and must return it within 14 days after you move out, along with an itemized statement of anything it keeps. A landlord that misses the 14-day deadline loses the right to keep any part of the deposit. General Obligations Law (GOL) section 7-108 sets these rules for most apartments, and GOL section 7-107 applies the same deposit rules to rent-stabilized apartments whose lease or renewal was signed on or after November 15, 2025.

How much can a New York landlord charge?

The one-month limit covers any deposit or advance payment. The Attorney General's tenant guide says this means a landlord cannot ask for both last month's rent and a security deposit. New York State Homes and Community Renewal (HCR), the agency that oversees rent stabilization, says the limit also bars a landlord from asking a guarantor or other third party for more.

The deposit can grow with the rent. If your lease is renewed at a higher rent, or the rent goes up during the lease, the landlord may collect enough to bring the deposit up to the new monthly rent. New York lease rights covers renewals and rent terms.

Other than rent and the deposit, Real Property Law section 238-a bars any fee or charge at or before the start of your tenancy except a background and credit check fee. That fee can be no more than $20 or the actual cost, whichever is less. The landlord must waive it if you provide a background or credit check done within the past 30 days, and must give you a copy of the check and the receipt before collecting it.

The inspection and 14-day rules below do not cover rent-controlled apartments or licensed senior communities such as assisted living residences. A rent-stabilized tenant whose current lease or renewal was signed before November 15, 2025 gets those rules with the first renewal signed after that date. For rent-controlled apartments and rent-stabilized apartments still under an older lease, the Attorney General says the landlord must return the deposit, minus lawful deductions, at the end of the lease or within a reasonable time after it. A registered seasonal rental of 120 days or less is exempt from the one-month cap.

If you paid more than one month's rent, ask the landlord in writing to refund the excess. In a rent-stabilized apartment, you can also file Form RA-89, the overcharge complaint HCR accepts when an owner demands more than one month's security. How much a landlord can charge compares New York's cap with other states.

Where your deposit is held and when you earn interest

Every New York landlord, whatever the size of the building, must hold your deposit in trust and keep it separate from its own money, under GOL section 7-103. If the landlord puts the deposit in a bank, the bank must have a place of business in New York, and the landlord must tell you in writing the bank's name and address and the amount deposited.

In a building with six or more apartments, the deposit must go into an interest-bearing account paying the rate that local banks pay on similar deposits. The landlord may keep 1% of the deposit each year as an administrative fee, and the rest of the interest belongs to you. You choose whether to receive it each year, have it applied to rent, or get it when the lease ends. In a building with fewer than six apartments, you earn interest only if the landlord chooses an interest-bearing account; if it does, the same rules apply.

Example: a $2,500 deposit in an account paying 3% a year earns $75. The landlord keeps $25 (1% of $2,500), and you are owed $50. If the account pays 1% or less, the fee takes all of the interest.

A lease clause that waives these rules is void. Security deposit interest requirements shows which other states require interest.

Inspections before you move in and before you move out

After you sign the lease and before you move in, the landlord must offer you the chance to inspect the apartment together. If you accept, you and the landlord sign a written agreement describing the apartment's condition, and the landlord cannot keep deposit money for any condition, defect, or damage listed in it. List every defect you find, such as stains or broken fixtures, and keep a signed copy.

Before you move out, you have a right to a second inspection:

1. Give enough notice. If you are the one ending the tenancy, give at least two weeks' notice; with less, the inspection right does not apply.
2. Watch for the landlord's notice. After either of you gives notice, the landlord must tell you in writing that you can request an inspection and be present for it.
3. Request the inspection in writing. It must happen no earlier than two weeks and no later than one week before the tenancy ends, and the landlord must give you at least 48 hours' written notice of the date and time.
4. Fix what the landlord lists. After the inspection, the landlord must give you an itemized statement of the repairs or cleaning it plans to deduct for, and you can take care of those items before you leave.

Move-out inspections explains how to prepare for the walkthrough.

The 14-day deadline and what the landlord can deduct

Within 14 days after you move out, the landlord must give you an itemized statement explaining any amount it kept and return the rest. If it misses the deadline, the Attorney General's guide says it must return the entire deposit, whether or not there is damage.

The landlord can keep only the reasonable, itemized cost of:

• unpaid rent;
• damage you caused beyond normal wear and tear;
• utility charges you owe directly to the landlord under the lease; and
• moving and storing belongings you leave behind.

The landlord cannot charge for ordinary wear and tear or for damage a previous tenant caused. If the dispute reaches court, the landlord must prove that the amount it kept was reasonable. Give the landlord a forwarding address in writing when you return the keys so the statement and any refund can reach you. Return deadlines by state lists the time limits elsewhere.

How to get your deposit back if the landlord keeps it

1. Send a written demand. State your move-out date, the amount owed, and that the 14-day deadline has passed, and give a date for payment. Keep a copy and proof of delivery.
2. File a complaint with the Attorney General. The office's Bureau of Consumer Frauds and Protection takes rent security complaints through an online form and offers mediation to help tenants recover deposits and interest.
3. Sue in small claims court. Small claims courts can award up to $10,000 in New York City, $5,000 in city courts outside the city and in the Nassau and western Suffolk district courts, and $3,000 in town and village courts; larger claims go to civil court. You need the landlord's correct name and address, and the court clerk can help you file. Bring the lease, cancelled checks or receipts for what you paid, dated photos, and any statement the landlord sent.
4. Ask for the full amount the law allows. A landlord that breaks these rules owes your actual damages, meaning the money you lost. If the court finds the landlord broke them deliberately, it can add punitive damages, a penalty of up to twice the deposit.

If your building is sold, the seller must turn your deposit over to the new owner within five days or return it to you, and must send you the new owner's name and address by registered or certified mail. Our overview of state security deposit laws sets New York's rules beside those of other states.