New York Security Deposit Law (Statutes & Source Material)
This page explains the main New York security deposit statute in practical terms and points you to official source material. It is meant to help you understand what New York law says, not to replace legal advice for a fact-specific dispute.
If you want the plain-English renter guide first, start with the New York Security Deposit Law Overview. If your landlord already missed the deadline, see the New York Security Deposit Deadline page.
Main New York security deposit statute
The main statewide security deposit statute is New York General Obligations Law Section 7-108.
In ordinary rental situations covered by the statute, New York law addresses:
- the one-month deposit cap;
- move-in inspection and written condition records;
- pre-vacate inspection and opportunity to cure;
- the 14-day statement-and-return deadline after the tenant vacates;
- permitted deductions;
- landlord burden of proof for retained amounts;
- forfeiture if the landlord misses the 14-day statement-and-return rule;
- actual damages and possible punitive damages for willful violations.
The 14-day statement-and-return rule
New York's core return rule is short and important. Within 14 days after the tenant vacates the premises, the landlord must provide an itemized statement indicating the basis for any retained amount and return any remaining deposit.
If the landlord does not provide both the statement and the remaining deposit within that 14-day period, the landlord forfeits any right to retain any portion of the deposit.
That is why the vacate date, key return, possession return, forwarding/contact information, landlord response date, and any refund record matter so much.
Permitted deductions
New York's statute ties deposit deductions to specific categories. A landlord may retain amounts for:
- nonpayment of rent;
- damage caused by the tenant beyond normal wear and tear;
- nonpayment of utility charges payable directly to the landlord under the lease or tenancy;
- moving and storage of tenant belongings.
Ordinary wear and tear is not a proper deduction. Prior-tenant damage is not your responsibility. In a dispute over the amount retained, the landlord bears the burden of proving the reasonableness of the amount kept.
For a renter-focused explanation, see What Can a New York Landlord Deduct?.
Inspection and cure rights
New York's statute also gives tenants important inspection-related rights.
After lease signing but before occupancy, a tenant may request a move-in inspection. If requested, the landlord and tenant should execute a written agreement noting existing defects or damage. The landlord may not later retain the deposit for conditions documented there.
Before move-out, after notice of termination, a tenant generally has the right to request an inspection unless the tenant gives less than two weeks' notice. The inspection must occur no earlier than two weeks and no later than one week before the tenancy ends. The landlord must give at least 48 hours' written notice of the inspection date and time.
After that inspection, the landlord should provide an itemized statement of proposed repairs or cleaning that may be deducted from the deposit. The tenant then has an opportunity to cure before the tenancy ends.
One-month cap and exceptions
New York generally limits covered deposits and advances to one month's rent.
That cap should not be overstated as identical in every specialized housing setting. The statute and related rules include carveouts or cross-referenced categories, including seasonal-use dwelling units, qualifying owner-occupied cooperative apartments, certain rent-regulated categories, assisted/senior/retirement settings, and other specialized arrangements.
If your housing is rent-stabilized, subsidized, public housing, voucher-assisted, senior/assisted housing, or another special category, confirm the specific overlay that applies before relying only on the general rule.
Interest and trust-account issues
Interest is separate from the 14-day return deadline.
Interest can matter if the building has six or more apartments. It can also matter if the landlord placed the deposit in an interest-bearing account. New York Attorney General guidance says the landlord may retain 1% simple interest on the deposit as an administrative fee.
Do not assume interest is owed in every case without the building and account facts. Save the lease, deposit receipt, account notices, refund statement, and any landlord communication about where the deposit was held.
Building sale or new owner
If the building was sold or management changed, the security deposit and any required interest may become part of the transfer or return issue.
Save the lease, deposit receipt, cancelled checks or payment records, ownership-transfer notices, management-change notices, and communications about where the deposit went. Successor-owner liability can be technical, so keep the documents before making claims about who is responsible.
Remedies and damages
New York law allows actual damages for violations of Section 7-108. If the landlord's violation was willful, the landlord could also face punitive damages of up to twice the amount of the deposit or advance.
That does not mean automatic double damages. The stronger the record on the deadline, itemization, deductions, inspection/cure process, and landlord communications, the clearer the renter's position becomes.
Court path
A deposit refund dispute is usually a money-claim problem. Small claims may be the practical court path if the landlord will not return the money after written demand.
New York court limits vary by court. NYC Small Claims may hear money claims up to $10,000. Nassau County, Western Suffolk County, and City Courts outside NYC generally use $5,000. Eastern Suffolk County, Town Courts, and Village Courts generally use $3,000.
Confirm current forms, fees, venue, service, and local procedure with NY Courts before filing. Housing Court is important for many NYC tenant-rights matters, but ordinary deposit refund claims are generally money claims.
See New York Small Claims for Security Deposits for the practical overview.
NYC and program overlays
Some renters may have extra rules or support paths because of where they live or how the housing is funded. Examples include NYC HPD/Tenant Helpline issues, rent-stabilized housing, HCR/DHCR matters, NYCHA, Section 8/Housing Choice Voucher, CityFHEPS/HRA/DSS assistance, HUD-assisted housing, and local court or support systems.
This statewide page does not try to explain each overlay. If one applies to your housing, treat it as a separate layer to confirm, not as a reason to ignore the general deposit timeline and proof record.
Official sources
- New York General Obligations Law Section 7-108
- New York Attorney General tenant resources
- New York Courts Small Claims information
- New York Homes and Community Renewal Fact Sheet #9
Source reviewed: April 2026.
Need the steps in order?
The statute tells you the rule. The harder part is turning the rule into a clean record: move-out proof, inspection/cure records, the 14-day deadline, itemized deductions, written demand, final demand, and possible escalation.