Under New York security deposit law, a landlord can collect no more than one month’s rent as a deposit, must hold it in a separate New York bank account, and has 14 days after you move out to return it with an itemized statement of any deductions. These rules come from the Housing Stability and Tenant Protection Act of 2019, which rewrote Section 7-108 of the General Obligations Law and applies to nearly all residential tenancies in the state.
The One-Month Cap
A landlord cannot demand more than one month’s rent as a security deposit, regardless of your credit, rental history, or whether you have pets.1New York State Senate. New York General Obligations Law GOB 7-108 Two narrow exceptions sit inside the same statute: seasonal-use dwellings and owner-occupied cooperative apartments have their own deposit rules. For everyone else, the cap is firm.
Where the Money Has to Sit
Your deposit is not the landlord’s money. It has to be held in a separate trust account at a bank located in New York, and the landlord must tell you the name and address of that bank.2New York State Senate. New Rights for Tenants: Housing Stability and Tenant Protection Act of 2019 Because the funds are held in trust, they stay yours until the landlord lawfully applies them to a permitted deduction, even if the landlord runs into financial trouble.
If your building has six or more residential units, the account must be interest-bearing. The interest belongs to you. The landlord can take a 1% annual administrative fee out of the interest earned and must either pay you the remainder or credit it toward your rent.3New York State Senate. New York Code GOB 7-103 – Trust Accounts and Interest Buildings with fewer than six units have no interest requirement.
Move-In and Move-Out Inspections
Two inspection rights sit inside the 2019 law, and both build the paper trail that decides most deposit disputes.
Before You Move In
After you sign the lease but before you take occupancy, the landlord must offer a walkthrough. If you accept, both sides sign a written agreement listing existing damage or defects. The landlord cannot later deduct from your deposit for any condition noted in that document.1New York State Senate. New York General Obligations Law GOB 7-108
Always accept. Take timestamped photos. If the landlord doesn’t offer the walkthrough, ask for it in writing. A signed condition report is the strongest single piece of evidence you can carry into a later dispute.
Before You Move Out
Once either side gives notice ending the tenancy, the landlord must tell you in writing that you can request a pre-move-out inspection and be present for it. If you request one, it has to happen no earlier than two weeks and no later than one week before your tenancy ends.1New York State Senate. New York General Obligations Law GOB 7-108
That window lets you fix small problems yourself before they show up as line items. A scuff you repaint costs less than a professional charge against your deposit. If you leave abruptly with less than two weeks’ notice, this inspection right falls away.
The 14-Day Return Rule
After you vacate, the landlord has 14 days to return your deposit along with an itemized statement of any deductions. Each charge must be described and its cost stated. If the landlord takes nothing out, the full amount comes back inside the same 14 days.2New York State Senate. New Rights for Tenants: Housing Stability and Tenant Protection Act of 2019
Give the landlord your forwarding address in writing before you leave, by certified mail or email, so you have proof. A landlord who claims not to know where to send the check is much less persuasive when you can show a delivery receipt.
What a Landlord Can and Cannot Deduct
Deductions are limited to four categories: unpaid rent, damage beyond normal wear and tear, unpaid utility charges you owed the landlord directly under your lease, and the cost of moving and storing belongings you left behind.1New York State Senate. New York General Obligations Law GOB 7-108
Normal wear and tear is off-limits. Faded paint, minor floor scuffs, small nail holes from hanging pictures, and worn carpet in high-traffic areas all count as normal use. A landlord who bills you to repaint walls that simply aged over a multi-year tenancy is making an improper deduction.
Damage beyond ordinary use is a different matter: large holes in walls, broken windows, stained or burned carpet, damage from unauthorized pets. The test is whether the condition came from everyday living or from something you did or failed to do that went past ordinary use. The landlord also cannot charge you for damage a prior tenant caused, even if that damage wasn’t written into your move-in report.1New York State Senate. New York General Obligations Law GOB 7-108
Assistance Animals Are Not Pets
If you have a disability and use a service animal or emotional support animal, the landlord cannot charge a pet deposit or pet fee for that animal. Under the federal Fair Housing Act, an assistance animal is not a pet, and you can request a reasonable accommodation to waive any pet-related deposit, fee, or restriction.4U.S. Department of Housing and Urban Development (HUD). Assistance Animals A landlord can deny the accommodation only in limited circumstances, such as when the specific animal poses a direct threat to safety or would cause significant property damage that can’t be addressed another way. Breed, size, and weight are not valid reasons.
You Cannot Use the Deposit as Last Month’s Rent
New York law bars tenants from applying the security deposit toward the final month’s rent. The deposit exists to cover unpaid obligations or damage after you leave. Withholding rent and telling the landlord to keep the deposit is a lease violation that can lead to legal action against you.5Rent Guidelines Board. Security Deposits FAQs Pay the last month in full, then use the 14-day process to get your deposit back.
If the Landlord Doesn’t Return It
When 14 days pass without the deposit or an itemized statement, small claims court is the practical way to recover. In New York City, small claims handles disputes up to $10,000, which covers most deposit cases.6NYCOURTS.GOV. In General – NY Small Claims Outside the five boroughs, city and district court small claims parts handle claims up to $5,000.
You don’t need a lawyer, and filing fees are modest. Bring your lease, the move-in condition report, photos from move-in and move-out, and proof that you gave a forwarding address. The tenant with timestamped photos and a certified-mail receipt is in a much stronger position than one working from memory.
New York does not impose automatic statutory multipliers, such as double or triple damages, for wrongful withholding. The court’s focus is on returning the amount improperly withheld. The 2019 law made the 14-day deadline and the itemized-statement obligation enforceable, giving judges a clear standard to apply.2New York State Senate. New Rights for Tenants: Housing Stability and Tenant Protection Act of 2019