New York Security Deposit Law

Maximum deposit

Landlords may collect no more than one month's rent as a security deposit, and may not also collect last month's rent or other advance rent (N.Y. Gen. Oblig. Law § 7-108(1-a)(a)). (N.Y. Gen. Oblig. Law § 7-108(1-a)(a))

One month's rent; no other advance rent may be collected

Return deadline

Landlords must return the deposit, less any itemized deductions, within 14 days after the tenant vacates (N.Y. Gen. Oblig. Law § 7-108(1-a)(e)). (N.Y. Gen. Oblig. Law § 7-108(1-a)(e))

Itemized statement of deductions

Landlords must give the tenant an itemized statement of the basis for any amount retained within 14 days after the tenant vacates (N.Y. Gen. Oblig. Law § 7-108(1-a)(e)). (N.Y. Gen. Oblig. Law § 7-108(1-a)(b), (e))

Interest on the deposit

Landlords of buildings with six or more units must keep deposits in an interest-bearing New York bank account and credit the tenant with the interest minus a 1% annual administrative fee (N.Y. Gen. Oblig. Law § 7-103(2), (2-a)). (N.Y. Gen. Oblig. Law § 7-103(2), (2-a))

Buildings with 6+ units: deposits must be held in an interest-bearing New York bank account; landlord may keep 1% per year as an administrative fee and the rest of the interest belongs to the tenant (paid annually, applied to rent, or held until the tenancy ends).

Penalty for wrongful withholding

A landlord who misses the 14-day itemization deadline forfeits any right to keep part of the deposit, and a willful violator owes actual damages plus punitive damages up to twice the deposit (N.Y. Gen. Oblig. Law § 7-108(1-a)(e), (g)). (N.Y. Gen. Oblig. Law § 7-108(1-a)(e), (g))

Where the deposit is held

Every New York landlord holds the deposit in trust and may not mix it with personal funds, and owners of buildings with six or more apartments must keep it in an interest-bearing account at a bank with a New York office (N.Y. Gen. Oblig. Law § 7-103(1), (2-a)). (N.Y. Gen. Oblig. Law § 7-103(1), (2), (2-a))

Any bank deposit must be made in a banking organization with a place of business in New York; in the larger buildings the account must pay the prevailing local rate, and the landlord may keep 1% a year as an administrative fee.

Receipt or written notice of the deposit

When a New York landlord banks a security deposit, it must tell each tenant in writing the bank's name and address and the amount deposited (N.Y. Gen. Oblig. Law § 7-103(2)). (N.Y. Gen. Oblig. Law § 7-103(2))

The AG guide applies this to all six-plus-unit buildings (which must bank the deposit) and to smaller landlords who voluntarily use an interest-bearing account; no separate cash receipt is required by statute.

Move-in condition checklist

After the lease is signed but before move-in, a New York landlord must offer the tenant a joint inspection, and if the tenant accepts, both sign a written agreement listing existing defects or damage (N.Y. Gen. Oblig. Law § 7-108(1-a)(c)). (N.Y. Gen. Oblig. Law § 7-108(1-a)(c), (d))

At move-out the landlord must also tell the tenant in writing of the right to a pre-move-out inspection held one to two weeks before the tenancy ends with 48 hours' notice, and give an itemized list of proposed deductions the tenant may fix; the signed move-in agreement is admissible only in deposit disputes.

Pet deposits

New York has no separate pet-deposit allowance, so a pet deposit counts toward the one-month limit on any deposit or advance, and no extra charge may be imposed for a guide, hearing or service dog in housing (N.Y. Gen. Oblig. Law § 7-108(1-a)(a); N.Y. Civ. Rights Law §§ 47, 47-b(2)). (N.Y. Gen. Oblig. Law § 7-108(1-a)(a), N.Y. Civ. Rights Law § 47, N.Y. Civ. Rights Law § 47-b(2))

§ 7-108(1-a)(a): 'No deposit or advance shall exceed the amount of one month's rent'; § 47 defines public facilities to include 'all forms of public and private housing accommodations', and § 47-b(2) bars 'any direct or indirect additional charge' for admitting a guide, hearing or service dog.

Nonrefundable fees

New York bans move-in and application charges other than rent and the capped deposit, except a background or credit check fee of the lesser of actual cost or $20, and the deposit itself is refundable except for lawful deductions (N.Y. Real Prop. Law § 238-a(1); N.Y. Gen. Oblig. Law § 7-108(1-a)(b)). (N.Y. Real Prop. Law § 238-a(1), N.Y. Gen. Oblig. Law § 7-108(1-a)(b))

§ 238-a(1)(a) bars 'any other payment, fee or charge before or at the beginning of the tenancy'; the check fee must be waived if the applicant supplies a report from the past 30 days, and lease waivers of § 238-a are void.

Small-landlord exemptions

New York landlords with fewer than six units need not put deposits in an interest-bearing account or pay interest, though they must still hold the money in trust and follow the cap and 14-day return rules (N.Y. Gen. Oblig. Law § 7-103(2-a)). (N.Y. Gen. Oblig. Law § 7-103(2-a), N.Y. Gen. Oblig. Law § 7-108(1-a)(a), (4)–(6))

A small landlord who voluntarily uses an interest-bearing account must follow the same interest rules; separately, registered seasonal-use units and owner-occupied cooperative apartments are excepted from the one-month cap (§ 7-108(1-a)(a), (4)–(6)).

Deposit alternatives and installments

New York's deposit statutes say nothing about surety bonds, deposit insurance or paying a deposit in installments (N.Y. Gen. Oblig. Law §§ 7-103, 7-108). (N.Y. Gen. Oblig. Law § 7-103, N.Y. Gen. Oblig. Law § 7-108)