Security Deposit Rules in NY: The One-Month Cap and Getting It Back

Since the 2019 Housing Stability and Tenant Protection Act, security deposits in New York are tightly regulated. Most renters don't know the rules, which is exactly why deposits go unreturned.

The rules

1. One month's rent — maximum. A landlord of a residential unit generally may not collect more than one month's rent as a security deposit or advance. This applies regardless of your credit score, income, or immigration status. Requests for "two months' security because of your credit" are generally unlawful for covered units.

2. The deposit is your money, held in trust. Landlords must keep deposits separate from their own funds and must notify you of the bank's name and address where it's held. Landlords of buildings with six or more units must hold deposits in interest-bearing accounts, with interest going to the tenant less a small administrative fee.

3. Pre-move-out inspection rights. You have the right to request an inspection before you move out. The landlord must notify you of this right, and if you request it, the inspection must occur between one and two weeks before your lease ends, with you entitled to be present. The landlord must then give you an itemized statement of proposed deductions, giving you the chance to fix things yourself before moving out. This is the single most underused tenant protection in the law.

4. Return within 14 days. After you vacate, the landlord must return the deposit — or an itemized statement of deductions plus the remainder — within 14 days. If they fail to provide the itemized statement within 14 days, they generally forfeit the right to retain any portion of the deposit.

5. Penalties for bad faith. A landlord who willfully violates the deposit rules may be liable for up to twice the amount wrongfully withheld.

What can be deducted

Legitimate: unpaid rent, damage beyond normal wear and tear, and costs of cleaning or repair caused by the tenant beyond ordinary use.

Not legitimate — this is normal wear and tear: faded paint, minor scuffs, small nail holes, worn carpet from ordinary walking, minor wall marks from furniture, aging appliances. Landlords may not charge you to repaint a unit on routine turnover, or to replace a carpet that simply aged out.

The line is "did ordinary living cause this, or did you?" A worn traffic path is wear. A wine stain is damage. A pinhole is wear. A hole from mounting a TV is likely damage.

How to protect your deposit — a timeline

Move-in day

• Photograph and video everything, timestamped: every room, every appliance, every pre-existing scratch, stain, and crack. Open closets. Film under sinks.

• Complete a written move-in condition checklist with the landlord, signed by both parties, listing existing defects. If the landlord won't sign one, email them your list and photos — a contemporaneous email is strong evidence.

During the tenancy

• Put every repair request in writing, keep every response

• Don't do unauthorized alterations; get written permission for anything structural, including heavy wall mounts

30–60 days before moving out

• Give proper notice per your lease (and note New York's notice requirements run both ways)

• Request the pre-move-out inspection in writing. Then fix whatever they list.

Moving out

• Clean thoroughly; patch and paint small holes if permitted

• Photograph and video everything again, timestamped, after the apartment is empty

• Return all keys and fobs, and document the handover in writing

• Provide your forwarding address in writing

After

• Expect the deposit or itemized statement within 14 days

• If nothing arrives, send a written demand referencing the 14-day rule and the forfeiture provision

If they don't return it

1. Written demand letter (email plus certified mail), citing GOL §7-108 and the 14-day requirement, attaching your photos.

2. Small claims court — in NYC, claims up to $10,000. It's designed for self-representation, filing fees are modest, and judges see these cases constantly. Bring your timestamped photos, the move-in checklist, written communications, and your lease.

3. The NYS Attorney General's office accepts complaints about deposit violations.

Most landlords settle when presented with a documented demand. The photos are what decide it.

One habit worth forming

Take the move-in photos. It takes twenty minutes, it costs nothing, and it is the difference between a returned deposit and an argument you can't win. Every single time.

This article is for general informational purposes only and does not constitute legal advice. Deposit rules have exceptions and fact-specific applications. Consult a tenant attorney for your situation. Sources: NY General Obligations Law §7-108; HSTPA of 2019. As of October 2026.

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