New York Security Deposit Law: One Month Cap and the 14-Day Rule
New York caps security deposits at one month’s rent, requires an inspection offer and an itemized statement within 14 days, and treats deposits as trust money.
By Seayora Editorial Team · Published · Facts checked · 3 min read
Short answer: In New York, a security deposit or advance payment for a home may not exceed one month’s rent. The landlord must offer a move-out inspection and, within 14 days after the tenant leaves, return the deposit with an itemized statement of any deductions, or lose the right to keep any of it. Ordinary wear and tear cannot be deducted, and the landlord bears the burden of proving the amount kept was reasonable. The deposit remains the tenant’s money, held in trust, and in buildings with six or more units it must earn interest for the tenant.
Key takeaways
- Deposit plus advance rent: no more than one month’s rent in total.
- Tenants can request a move-out inspection one to two weeks before the lease ends.
- Itemized statement and refund within 14 days, or the landlord forfeits any right to keep the deposit.
- In buildings with six or more units, the deposit earns interest; the landlord may keep 1% a year as an administrative fee.
How much can a New York landlord charge for a deposit?
No deposit or advance may exceed one month’s rent (N.Y. Gen. Oblig. Law § 7-108). That limit covers a security deposit and any advance payment together, so a landlord cannot add “last month’s rent” on top of a one-month deposit.
What inspections does the law require?
The law provides for an inspection before move-in, and requires the landlord to tell the tenant of the right to request an inspection before vacating. If the tenant asks, the inspection must take place no earlier than two weeks and no later than one week before the tenancy ends, so the tenant has a chance to fix what the landlord points out.
When must the deposit be returned?
Within 14 days after the tenant vacates, the landlord must give an itemized statement of the reasons for keeping any part of the deposit and return the rest. A landlord who fails to do so forfeits any right to retain any portion of the deposit. Deductions cannot cover ordinary wear and tear, the landlord bears the burden of proving the amount kept was reasonable, and a willful violation can bring punitive damages of up to twice the deposit.
| Rule | What the law says | Source |
|---|---|---|
| Maximum | One month’s rent, deposit and advance combined | GOL § 7-108(1-a)(a) |
| Move-out inspection | On the tenant’s request, one to two weeks before the end of the tenancy | GOL § 7-108(1-a)(d) |
| Return deadline | 14 days after the tenant vacates, with an itemized statement | GOL § 7-108(1-a)(e) |
| Wear and tear | Cannot be deducted | GOL § 7-108(1-a)(b) |
| Willful violation | Punitive damages up to twice the deposit | GOL § 7-108(1-a)(g) |
| Where the money is held | In trust, not commingled; interest-bearing at a New York bank in buildings with six or more units | GOL § 7-103 |
Does a New York deposit earn interest?
A deposit remains the tenant’s money, held in trust, and may not be commingled with the landlord’s own funds. If it is placed in a bank, the landlord must tell the tenant in writing the bank’s name and address and the amount, and the bank must be in New York. In buildings with six or more family dwelling units, the deposit must be in an interest-bearing account; the landlord may keep 1% a year as an administrative fee, and the rest of the interest belongs to the tenant, paid annually, applied to rent or held until the deposit is returned (N.Y. Gen. Oblig. Law § 7-103). A lease clause waiving these rules is void.
For what counts as damage, see normal wear and tear vs. damage; for other states, see security deposits explained.
Frequently asked questions
Can a New York landlord ask for last month’s rent plus a security deposit?
Not if the two together come to more than one month’s rent. GOL § 7-108 caps any deposit or advance at one month’s rent.
What if my landlord does not return my deposit in 14 days?
A landlord who misses the 14-day itemized statement forfeits any right to keep any portion of the deposit, and a willful violation can bring punitive damages of up to twice the deposit.
Do New York landlords have to pay interest on deposits?
In buildings with six or more units, yes. The deposit must be in an interest-bearing New York bank account, and the tenant gets the interest less a 1% annual administrative fee.
State-by-state rules
- How long does a landlord have to return a security deposit? — compared across 48 states and the District of Columbia
- How much can a landlord charge for a security deposit? — compared across 29 states and the District of Columbia
- Does a landlord have to pay interest on a security deposit? — compared across 13 states and the District of Columbia
Sources
- N.Y. General Obligations Law § 7-108, Security deposits, New York State Senate
- N.Y. General Obligations Law § 7-103, Money deposited or advanced for use or rental of real property, New York State Senate
How Seayora helps
Security deposits: Track each deposit, its bank, its interest and the 14-day return deadline.
This article is general information, not legal advice. Landlord-tenant law varies by state and city and changes often, so check the current rule for your property and talk to an attorney before acting on a dispute.
How we write and check these guides: editorial standards.
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