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New York Security Deposit Law, in Plain English

New York rebuilt its deposit law in 2019 — one month's rent, period; fourteen days to give the money back; and a walkthrough offered at both ends of the tenancy. Since late 2025, rent-stabilized tenants are covered too. Here's what General Obligations Law § 7-108 actually requires, for both sides of the lease.

Document move-in or move-out condition — first inspection free →

14 daysDeadline after the tenant vacates to return the deposit with an itemized statement for anything retained — miss it and the right to keep any portion is forfeited
1 month's rentStatewide cap on deposits and advances combined since the 2019 HSTPA
2 inspectionsMove-in: a joint inspection with a signed agreement on existing damage. Move-out: notice, an itemized deduction list, and a chance to cure
Up to 2xActual damages for violations; willful violations expose the landlord to punitive damages of up to twice the deposit

One month's rent — no stacking, no exceptions

Since June 2019, the Housing Stability and Tenant Protection Act caps everything collected as security at one month's rent, statewide. The cap counts deposits and advances *combined*: "first month, last month, and security" — the old New York standard — is now unlawful for most units, and a pet deposit or key deposit can't be stacked on top of a full month.

The deposit also never stops being the tenant's money. Under § 7-103 it's held in trust: commingling it with the landlord's own funds is prohibited, and any waiver of these rules is void. In buildings of six or more units, the deposit must sit in an interest-bearing New York bank account — the landlord may keep 1% per year as an administrative fee, and the rest of the interest belongs to the tenant.

Since November 15, 2025, these § 7-108 protections extend to rent-stabilized units, which previously sat outside the section.

The signed condition agreement — evidence before the tenancy starts

Before occupancy begins, the landlord must offer the tenant the opportunity to inspect the unit together and sign a written agreement recording existing defects and damage. That document is the baseline for the entire tenancy: at move-out, the tenant can't be charged for anything noted in it, and the landlord has a signed record of what was pristine.

Most tenants wave the walkthrough off on moving day. Don't — it's the cheapest evidence either side will ever collect.

Two inspections, one deadline — and the record carries all of it.

Done at the door, not at your desk
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PropInspect is a documentation tool, not a compliance service or legal-advice product. Using PropInspect does not guarantee compliance with New York law or a particular result in a deposit dispute.

The pre-move-out inspection — a deduction list you can still fix

Unless the tenant gives less than two weeks' notice of leaving, the landlord must notify the tenant of the right to a pre-move-out inspection, held no earlier than two weeks and no later than one week before the tenancy ends, on at least 48 hours' written notice of the date and time.

After the inspection, the landlord hands over an itemized statement of the repairs and cleaning that would come out of the deposit — and the tenant gets the chance to cure those items before leaving. It converts a surprise deduction into a to-do list, and it surfaces disagreements while both sides are still cooperative.

After move-out: 14 days, then forfeiture

Within 14 days of the tenant vacating, the landlord must return the deposit — and if any portion is retained, include an itemized statement explaining the basis for each deduction.

The permitted deductions are narrow and must be reasonable: unpaid rent, damage beyond normal wear and tear, moving and storage of the tenant's belongings, and utility arrears owed to the landlord. Ordinary aging — worn carpet paths, faded paint, small nail holes — is the landlord's cost of doing business.

Miss the 14 days, or skip the itemization, and the statute's answer is blunt: the landlord forfeits any right to retain any portion of the deposit. Actual damage doesn't rescue a late statement.

When it goes wrong: double damages and small claims

A landlord who violates § 7-108 owes the tenant's actual damages. A landlord found to have violated it willfully — keeping a deposit with no statement, deducting for wear and tear, ignoring the cap — can be ordered to pay punitive damages of up to twice the deposit on top.

Most deposit fights land in small claims: up to $10,000 in New York City Civil Court, $5,000 in city courts outside NYC, and $3,000 in town and village justice courts. Filing is cheap and lawyers are optional. What decides these cases is paper: the signed move-in agreement, the itemized statements from both inspections, and dated room-by-room photos from move-in and move-out.

Sources and official texts

The official sources for this guide are N.Y. General Obligations Law § 7-108 — the deposit statute (cap, 14-day return, inspections, damages); N.Y. General Obligations Law § 7-103 — trust status, no commingling, interest for 6+ unit buildings; the New York Attorney General's Residential Tenants' Rights Guide; and the New York Courts small-claims page ($10,000 NYC / $5,000 city courts / $3,000 town and village).

Frequently asked questions

How long does a landlord have to return a security deposit in New York?

14 days after you vacate. The landlord must return the deposit and, if anything is kept, provide an itemized statement explaining why. Missing the 14-day deadline forfeits the landlord's right to retain any portion of the deposit — even for real damage.

How much can a landlord charge for a security deposit in New York?

No more than one month's rent, statewide, under the 2019 Housing Stability and Tenant Protection Act. That cap covers all deposits and advances combined — 'last month's rent up front,' pet deposits, and key deposits all count toward the same one-month limit.

Do I get interest on my deposit in New York?

If your building has six or more units, yes: the deposit must be held in an interest-bearing New York bank account, the landlord may keep 1% per year as an administrative fee, and the rest of the interest is yours. In smaller buildings the deposit must still be held in trust, but interest isn't required.

What are New York's move-in and move-out inspection rights?

Before you move in, the landlord must offer a joint inspection and a written agreement recording existing damage. Before you move out (unless you gave under two weeks' notice), the landlord must offer an inspection held one to two weeks before the end of the tenancy, give you an itemized list of proposed deductions, and let you fix those items before you leave.

What can a landlord deduct from a deposit in New York?

Reasonable, itemized amounts for unpaid rent, damage beyond normal wear and tear, moving and storage of your belongings, and utility charges owed to the landlord. Ordinary aging — worn carpet paths, faded paint — is the landlord's cost, not yours.

What happens if the landlord violates the deposit law?

The tenant can recover actual damages, and if the violation was willful, a court can add punitive damages of up to twice the deposit. Separately, commingling the deposit with the landlord's own money or missing the 14-day deadline can forfeit the landlord's claim to the deposit entirely.

Does the deposit law cover rent-stabilized apartments?

Yes — since November 15, 2025, § 7-108's protections extend to rent-stabilized units, which previously fell outside the section. Rent-stabilized tenants now get the same one-month cap, 14-day return, and inspection rights.

Where do deposit disputes go in New York?

Usually small claims court: up to $10,000 in New York City Civil Court, $5,000 in city courts elsewhere, and $3,000 in town and village courts. Bring the lease, the signed move-in condition agreement, the itemized statement (or proof none arrived in 14 days), and your dated photos and videos.

Walk the unit. The report's already done.

Photos, video and notes land in the right room as you go. Share one link before you're back at the office: the repair person sees what to fix, the tenant sees why, the owner sees everything.

Done at the door, not at your desk
One link for everyone. No account, no app.
Dated, room-by-room proof for when the deposit is due

First inspection free, then $0.99. No subscription.

Start an inspection See a sample report

PropInspect is a documentation tool, not a compliance service or legal-advice product.

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