Security Deposits
New York law strictly limits what landlords can charge for security deposits and sets clear rules for when and how they must be returned. Understanding these rules can save you money and stress.
Deposit Limits
As of the Housing Stability and Tenant Protection Act of 2019, security deposits in New York are capped at one month's rent — no exceptions. Landlords cannot collect last month's rent in advance, additional deposits for pets, or any other fees beyond the first month's rent and one month's security. This applies to all residential tenancies in NYC.
How Deposits Must Be Held
Your landlord must hold your security deposit in a New York bank account and notify you of the bank's name and address. In buildings with six or more units, the deposit must earn interest (minus a 1% annual administrative fee the landlord can retain). Your landlord cannot commingle your deposit with their own funds.
Getting Your Deposit Back
When you move out, your landlord has 14 days to return your deposit or provide an itemized statement of deductions. Normal wear and tear cannot be deducted. If your landlord fails to return the deposit or provide the statement within 14 days, they may forfeit the right to keep any portion of it.
What to Do If Your Deposit Isn't Returned
Send a written demand letter via certified mail. If that doesn't work, you can sue in small claims court (up to $10,000) — no lawyer needed. Bring your lease, move-in/move-out photos, your demand letter, and any correspondence. Many tenants successfully recover deposits in small claims court.
Do's & Don'ts
Do
- Take dated photos when you move in and move out
- Get a receipt for your security deposit
- Request the bank name and address where the deposit is held
- Send a written demand if your deposit isn't returned in 14 days
- File in small claims court if necessary
Don't
- Pay more than one month's rent as a security deposit
- Accept deductions for normal wear and tear
- Skip the move-in walkthrough or forget to document conditions
- Wait too long to demand your deposit back (statute of limitations applies)
- Pay a broker fee that exceeds the legal limits
Helpful Resources
Need Help? Call AG Tenant Helpline
(800) 771-7755Frequently Asked Questions
4 questions answered
Since 2019, landlords can charge a maximum of one month's rent as a security deposit, regardless of whether the apartment is rent-stabilized.
14 days after you vacate. They must provide an itemized statement of any deductions. Failure to return the deposit within 14 days may mean you forfeit the right to make any deductions.
Only unpaid rent and damages beyond normal wear and tear. Normal wear and tear (faded paint, small nail holes, worn carpet) is not a valid reason for deductions.
Document the apartment's condition with photos and video. Clean thoroughly. Request a pre-move-out inspection with your landlord present. Get all agreements in writing.
Disclaimer
This guide is for informational purposes only and is not legal advice. For advice specific to your situation, contact a qualified attorney or one of the free legal services listed above.