New York security deposit law

• Within 14 days after the tenant vacates, give an itemized statement of anything kept and return the rest. Missing the deadline forfeits the right to keep any part of the deposit.

The statute doesn't make return depend on a forwarding address.

Required: Yes. An itemized statement of the basis for any amount kept, within 14 days.

Deductions are limited to unpaid rent, damage beyond normal wear and tear, unpaid utilities payable to the landlord, and moving and storage of the tenant's belongings. No deductions for ordinary wear and tear or for damage that existed before the tenancy. The landlord must prove that any amount kept is reasonable.

Apart from rent and deposits, landlords can't charge application or other fees at or before the start of a tenancy. The only exception is a background/credit check fee capped at the actual cost or $20, whichever is less (RPL § 238-a).

• Interest required: Yes. Required in buildings with 6 or more units: the deposit must be in an interest-bearing New York bank account at the prevailing rate. The landlord may keep 1% a year as an administrative fee, and the rest of the interest belongs to the tenant. A landlord of a smaller building who chooses an interest-bearing account must follow the same rules.
• Separate account required: Yes. All landlords must hold deposits in trust and not mingle them with their own money. If the deposit is in a bank, it must be a New York bank, and the tenant must be told the bank's name and address and the deposit amount in writing.
• Move-in inspection required: Yes. Before move-in, the landlord must offer the tenant a joint inspection. If the tenant accepts, both sign a written condition report, and the landlord can't later deduct for conditions noted in it. After either side gives notice of ending the tenancy (unless the tenant gives less than two weeks' notice), the landlord must tell the tenant in writing of the right to a pre-move-out inspection. If requested, it is held 1–2 weeks before the tenancy ends with at least 48 hours' written notice, and the landlord then itemizes proposed deductions so the tenant can fix them.

A violator owes actual damages. A willful violation adds punitive damages of up to twice the deposit (GOL § 7-108(1-a)(g)).

Punitive damages require a willful violation. Missing the 14-day statement forfeits the right to keep any part of the deposit, regardless of intent.

NYC Small Claims Court up to $10,000. City Courts outside NYC and Nassau/western Suffolk District Courts up to $5,000. Town and Village Courts up to $3,000. Court information

Before filing, many tenants send a written demand first. Write a New York demand letter →

• Under the Attorney General's guide, the 14-day return and inspection rules apply to units that aren't rent-regulated. For rent-regulated units, the deposit (less lawful deductions) must be returned at the end of the lease or within a reasonable time after.
• On a sale, the landlord must transfer deposits to the new owner within 5 days or return them, and notify tenants by registered or certified mail.

• N.Y. Gen. Oblig. Law § 7-103 Retrieved October 11, 2026.
• N.Y. Gen. Oblig. Law § 7-108 Retrieved October 11, 2026.
• N.Y. Real Prop. Law § 238-a Retrieved October 11, 2026.
• NY Attorney General, Residential Tenants' Rights Guide Retrieved October 11, 2026.
• NY Courts: New York City Small Claims Court Retrieved October 11, 2026.
• NY Courts: Town and Village Courts FAQ Retrieved October 11, 2026.

Laws change. This page was checked against the sources above on October 11, 2026. It is legal information, not legal advice; see our methodology.