New York Security Deposit Laws: Caps, Deadlines and Itemization

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

one month's rent (§ 7-108(1-a)(a)). The limit covers everything held as security, whatever it is called — pet deposit, key deposit, cleaning deposit. A landlord cannot collect a deposit at the cap and then add a separate refundable fee on top; the total is what counts.

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

14 days from the end of the tenancy (§ 7-108(1-a)(e)). The window runs from when the tenant vacates, not from the scheduled lease end date and not from when repairs are finished. Within it the landlord must return the deposit or the balance, together with an itemized statement of every deduction.

What has to be on the itemized statement?

Each deduction must be described and priced individually, with enough detail for the tenant to understand what was charged and why (§ 7-108(1-a)(b), (e)). A single line reading "damages" or "cleaning" does not satisfy the requirement. Deductions are limited to unpaid rent, damage caused by the tenant beyond normal wear and tear, unpaid utility charges payable directly to the landlord under the lease, and moving and storing the tenant's belongings — never ordinary wear and tear or damage caused by a prior tenant.

Failing to provide the statement within the deadline generally forfeits the right to keep any of the deposit, regardless of how well-founded the deductions were.

Does a New York landlord have to pay interest on a security deposit?

Only if the building has six or more units (N.Y. Gen. Oblig. Law § 7-103(2-a)). This is one of the most frequently misstated rules in New York, because the answer depends on the building rather than the state, and many published charts give a single blanket answer that is wrong for most landlords.

Where interest is required, the deposit must be held in a New York bank account and the tenant told where it is held.

Is there a move-in and move-out inspection requirement?

Yes. Before move-in the landlord must offer the tenant an inspection, and before move-out the landlord must tell the tenant in writing of their right to request one — held no earlier than two weeks and no later than one week before the tenancy ends, on at least 48 hours' written notice (§ 7-108(1-a)(c)–(d)). Where it applies, the tenant has the right to be present at the inspection and to receive a written statement of the conditions the landlord expects to be remedied, which gives them the opportunity to fix things before the deduction is made.

Even where it is not required, a signed move-in condition report with dated photographs is the single most useful document a landlord can hold in a deposit dispute. It costs nothing and it converts an argument into a comparison.

Do New York City rules differ from the rest of the state?

The statewide cap, return deadline and itemization requirement apply everywhere in New York, including the five boroughs. What differs in New York City is the density of additional regulation — rent stabilisation, local housing rules, and building-specific requirements — rather than the core deposit provisions.

The practical upshot for an upstate landlord: you are covered by the same deposit rules as a Brooklyn landlord. The common assumption that these are "New York City rules" leads directly to missed deadlines in Buffalo, Rochester and Albany.

New York security deposit rules at a glance

Generated from statute text and re-checked when the law changes. Last verified September 25, 2026.

What happens if a landlord misses the deadline or withholds in bad faith?

Missing the 14-day window generally forfeits the right to retain any part of the deposit. Wilful violation exposes the landlord to punitive damages of up to twice the amount of the deposit (§ 7-108(1-a)(g)). The exposure is disproportionate to the amounts involved, which is why the deadline deserves a calendar reminder on the day the tenant hands back the keys.

How does this compare to other states?

New York's cap is among the tighter ones in the country, and its return deadline is shorter than most. California's rules work differently on both counts, and the itemization and receipt requirements diverge further still. A landlord operating in more than one state cannot reuse a deposit clause across them — the numbers and the process both change.

What about application fees?

New York caps residential application fees at $20 (N.Y. Real Prop. Law § 238-a), one of the lowest limits in the country and well below what many landlords charge by habit. The cap applies to the fee itself, and background and credit check costs generally have to fit inside it rather than being added on top.

If you are screening tenants in New York, that number belongs in your process before your next listing goes up.

What your New York lease should say about the deposit

1. The amount held, as a figure, with every component named.
2. Where it is held, including the bank, where the interest rule applies.
3. What it covers — unpaid rent, damage beyond ordinary wear and tear.
4. The return process, naming the 14-day deadline and where the tenant should send a forwarding address.
5. A signed move-in condition report, attached as an addendum.

Frequently asked questions