Your Security Deposit Rights in New York
Updated 4 days ago (March 7, 2026)
New York Security Deposit Cap
The Housing Stability and Tenant Protection Act (HSTPA) of 2019 fundamentally changed security deposit law in New York. Under Real Property Law Section 7-108, landlords can charge a maximum of one month's rent as a security deposit. This applies statewide to all residential rental units, including those outside of New York City. Before the HSTPA, there was no statutory cap for market-rate apartments, and landlords routinely collected two or three months' rent upfront.
The one-month cap is absolute and includes any advance payment or deposit, regardless of what the landlord calls it. Pet deposits, key deposits, and move-in fees that function as deposits are all included in the one-month limit. A landlord cannot circumvent the cap by labeling additional charges as fees or prepaid rent beyond the first and last month.
If your landlord collected more than one month's rent as a deposit, you can demand the excess back. The HSTPA provides that any deposit amount exceeding the statutory limit is recoverable by the tenant. If the landlord refuses, you can pursue the overcharge in small claims court or housing court.
The 14-Day Return Requirement
New York landlords must return your security deposit within 14 days of your move-out. This is one of the shortest return windows in the country and reflects the HSTPA's strong tenant protections. The landlord must provide an itemized statement listing any deductions along with the remaining deposit amount.
If the landlord fails to return the deposit or provide an itemized statement within 14 days, they forfeit the right to retain any portion of the deposit for damages. This penalty is automatic and does not require you to prove bad faith. The full deposit amount becomes due immediately, regardless of any legitimate deductions the landlord might have claimed.
Landlords must deposit your security deposit in a New York banking institution within the state. For buildings with six or more units, the deposit must be held in an interest-bearing account, and the tenant is entitled to the interest earned minus a 1% administrative fee. The landlord must notify you in writing of the bank name and address where the deposit is held.
Prohibited Deductions and Tenant Protections
New York law specifically prohibits deductions for normal wear and tear. Under Section 7-108, landlords can only deduct for actual damage beyond normal use, unpaid rent, and the reasonable cost of repairs documented with receipts. The itemized statement must include the actual cost of each repair, not an estimate.
Landlords cannot charge for painting or carpet replacement due to normal use over time. If you lived in the unit for several years, faded paint and worn carpet are expected and cannot be deducted. New York courts have consistently ruled that the useful life of these items diminishes with time and the landlord cannot charge the full replacement cost.
The HSTPA also prohibits landlords from using the deposit to cover last month's rent unless you specifically agree in writing. And importantly, the landlord must provide a detailed move-out inspection report if you request one. Use this inspection opportunity to dispute any claims before the deduction is finalized.
Enforcing Your Deposit Rights
New York Housing Court handles deposit disputes in New York City, while small claims court covers disputes outside the city. Filing fees are minimal, generally $20 to $25. Cases are usually scheduled within a few weeks, making this a fast and effective remedy for deposit disputes.
You can also file a complaint with the New York State Attorney General's office if your landlord engages in a pattern of wrongfully withholding deposits. The AG's office can investigate and take action against repeat offenders. Additionally, tenants in rent-stabilized units can file complaints with the Division of Housing and Community Renewal (DHCR).
Document the condition of your apartment at move-in and move-out with timestamped photos. Save all rent payment records and correspondence with your landlord. New York courts are generally sympathetic to tenants in deposit disputes, especially when landlords fail to meet the 14-day return requirement or provide inadequate itemized statements.
Legal References
Legal Disclaimer: Tellus provides this content for informational purposes only. This is not legal advice. Laws vary by state and locality, and regulations may have changed since this article was published. Consult a qualified attorney for guidance specific to your situation.