New York Security Deposit Return Rules: 14 Days and Two Inspections

New York landlords must return the security deposit within 14 days after the tenant vacates. If you keep any of it, include an itemized statement of the basis for each amount. Miss the 14 days and you forfeit the right to keep any part of it. The deposit can't exceed one month's rent. You also have two inspection duties: offer a joint inspection before move-in, and, when the tenancy is ending, tell the tenant they can ask for a pre-move-out inspection and a chance to fix problems. Most of these rules date from the 2019 Housing Stability and Tenant Protection Act and sit in N.Y. Gen. Oblig. Law § 7-108(1-a).

The New York security deposit laws page lists each rule with its citation. This post covers the end-of-tenancy steps in order.

Who these rules cover

Section 7-108(1-a) applies to most New York rentals. It doesn't apply to units under New York City rent control or the emergency housing rent control law, licensed continuing care, assisted living or adult care facilities, and certain senior communities. Seasonal units and owner-occupied co-ops have their own deposit rules. The Attorney General's tenant guide notes that rent-stabilized and rent-controlled units follow separate return rules (NY AG, Residential Tenants' Rights Guide), so check those before you rely on this summary.

Step 1: Before move-in, offer the joint inspection

After the lease is signed but before the tenant moves in, you must offer an inspection with the tenant. If the tenant accepts, you both sign a written agreement listing existing defects or damage. You can't later deduct for anything noted in it (§ 7-108(1-a)(c)). If you skipped this at move-in, you have less evidence later. The move-in/move-out checklist works as the written agreement.

Step 2: When notice is given, offer the pre-move-out inspection

Within a reasonable time after either side gives notice to end the tenancy, tell the tenant in writing that they can ask for an inspection before moving out and be present for it. You don't have to do this if the tenant ends the tenancy with less than two weeks' notice (§ 7-108(1-a)(d)).

If the tenant asks for the inspection:

1. Schedule it no earlier than two weeks and no later than one week before the tenancy ends.
2. Give at least 48 hours' written notice of the date and time.
3. Afterward, give the tenant an itemized statement of the repairs or cleaning you'd deduct for.
4. Let the tenant fix those items before they leave.

That statement is admissible only in a dispute over the deposit. The cure opportunity matters: a deduction for something the tenant could have fixed, after you skipped this step, is easy to challenge.

Step 3: Within 14 days of move-out, send the statement and refund

You may keep only reasonable, itemized costs for these four things (§ 7-108(1-a)(b)):

• Unpaid rent
• Damage caused by the tenant beyond normal wear and tear
• Unpaid utility charges payable directly to you under the lease
• Moving and storing the tenant's belongings

You can't deduct for ordinary wear and tear or for damage a prior tenant caused. Within 14 days after the tenant vacates, send the itemized statement and the rest of the deposit (§ 7-108(1-a)(e)). Mail it with proof of mailing and keep a copy. Our security deposit return letter is set up for an itemized statement, and the security deposit calculator checks the totals.

A hypothetical example: rent is $2,400 and you hold a $2,400 deposit. At the pre-move-out inspection you list a broken closet door and a stained oven. The tenant replaces the door before leaving but doesn't clean the oven. Your 14-day statement deducts $120 for oven cleaning, with the receipt, and you return $2,280.

What happens if you get it wrong

• Late statement: if you don't send the statement and the deposit within 14 days, you forfeit any right to keep any portion of it (§ 7-108(1-a)(e)).
• Burden of proof: in any dispute, you must prove the amount you kept was reasonable (§ 7-108(1-a)(f)).
• Damages: a landlord who violates these rules owes actual damages. A willful violation adds punitive damages of up to twice the deposit (§ 7-108(1-a)(g)).

Holding the deposit during the tenancy

The deposit belongs to the tenant while you hold it. You can't mix it with your own money. Owners of buildings with six or more apartments must keep deposits in an interest-bearing New York bank account, tell each tenant the bank's name and address and the amount deposited, and pay or credit the interest minus a 1% annual administration fee (N.Y. Gen. Oblig. Law § 7-103). Smaller buildings don't have to pay interest unless the money is in an interest-bearing account.

The one-month cap counts every deposit or advance together, so you can't add last month's rent or a separate pet deposit on top (§ 7-108(1-a)(a)). For how other states handle returns, see how to return a security deposit, and for what counts as damage, see normal wear and tear examples. The New York landlord-tenant law page covers Good Cause eviction and rent rules, and the New York lease agreement page shows where the deposit terms go.

Sources

Official sources cited above (checked 2026-10-30):

• N.Y. Gen. Oblig. Law § 7-108, security deposits for residential premises (NY Senate)
• N.Y. Gen. Oblig. Law § 7-103, money deposited as security (NY Senate)
• New York Attorney General, Residential Tenants' Rights Guide