General information, not legal advice. Landlord-tenant rules change, and cities and counties can add their own. Check the current statute and local ordinances, and talk to a licensed attorney before you act.
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The short version
- For most rentals, the deposit and any advance payment together may not exceed one month of rent.
- The landlord must return the deposit, minus lawful deductions, within 14 days after the tenant moves out.
- Any deductions must be listed in an itemized statement sent within the same 14 days, and a tenant who asks may get a pre move out inspection to fix problems first.
- In buildings with six or more units, the deposit must earn interest for the tenant, and the landlord may keep 1 percent a year as an administrative fee.
- A landlord who misses the 14 day deadline loses the right to keep any part of the deposit, and a willful violation can bring punitive damages of up to twice the deposit.
New York limits deposits to one month of rent for most rentals and gives landlords 14 days after move out to return the money with an itemized statement. Missing that deadline costs the landlord the right to keep any of it.
New York security deposits at a glance
| Rule | New York | Law |
|---|---|---|
| Deposit limit | For most rentals, the deposit and any advance payment together may not exceed one month of rent. | General Obligations Law section 7-108 |
| Deadline to return the deposit | The landlord must return the deposit, minus lawful deductions, within 14 days after the tenant moves out. | General Obligations Law section 7-108 |
| Itemized deductions | Any deductions must be listed in an itemized statement sent within the same 14 days, and a tenant who asks may get a pre move out inspection to fix problems first. | General Obligations Law section 7-108 |
| Interest on deposits | In buildings with six or more units, the deposit must earn interest for the tenant, and the landlord may keep 1 percent a year as an administrative fee. | General Obligations Law section 7-103 |
| Penalty for wrongful withholding | A landlord who misses the 14 day deadline loses the right to keep any part of the deposit, and a willful violation can bring punitive damages of up to twice the deposit. | General Obligations Law section 7-108 |
How much you can collect
Deposit limit. For most rentals, the deposit and any advance payment together may not exceed one month of rent. (General Obligations Law section 7-108)
Holding the deposit
Where the deposit is held. The deposit stays the tenant's money held in trust, may not be mixed with the landlord's funds, and if banked the tenant must be told the bank's name and address and the amount. (General Obligations Law section 7-103)
Interest on deposits. In buildings with six or more units, the deposit must earn interest for the tenant, and the landlord may keep 1 percent a year as an administrative fee. (General Obligations Law section 7-103)
Receipts and notices. Before move in, the landlord must offer the tenant an inspection, and defects listed in the signed inspection record cannot be charged to the deposit later. (General Obligations Law section 7-108)
Deductions and normal wear and tear
A deposit can cover unpaid rent and damage beyond normal wear and tear. Everyday aging, such as faded paint, small nail holes or light carpet wear, is not damage.
Itemized deductions. Any deductions must be listed in an itemized statement sent within the same 14 days, and a tenant who asks may get a pre move out inspection to fix problems first. (General Obligations Law section 7-108)
Returning the deposit
Deadline to return the deposit. The landlord must return the deposit, minus lawful deductions, within 14 days after the tenant moves out. (General Obligations Law section 7-108)
Penalties for wrongful withholding
Penalty for wrongful withholding. A landlord who misses the 14 day deadline loses the right to keep any part of the deposit, and a willful violation can bring punitive damages of up to twice the deposit. (General Obligations Law section 7-108)
Mistakes to avoid
- Skipping a dated move-in condition report with photos, then having nothing to compare against at move out.
- Charging for normal wear and tear.
- Missing the return deadline, even by a few days.
- Not asking for a forwarding address before the tenant leaves.
- Losing track of deposit money by mixing it with operating funds without a ledger.
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General information, not legal advice.
Verify current law
We last checked these New York rules on . Laws change and cities can add their own, so confirm the current text before you rely on it, and talk to a New York attorney about your situation.
Laws named on this page
- General Obligations Law section 7-108
- General Obligations Law section 7-103
Official sources
New York forms for this topic
Letters and checklists for this topic
The parts people misread.
Is there a limit on security deposits in New York?
For most rentals, the deposit and any advance payment together may not exceed one month of rent. Source: General Obligations Law section 7-108.
How long does a New York landlord have to return a deposit?
The landlord must return the deposit, minus lawful deductions, within 14 days after the tenant moves out. Source: General Obligations Law section 7-108.
Do New York landlords have to pay interest on deposits?
In buildings with six or more units, the deposit must earn interest for the tenant, and the landlord may keep 1 percent a year as an administrative fee. Source: General Obligations Law section 7-103.
What happens if a New York landlord keeps a deposit wrongly?
A landlord who misses the 14 day deadline loses the right to keep any part of the deposit, and a willful violation can bring punitive damages of up to twice the deposit. Source: General Obligations Law section 7-108.