New York Security Deposit Law

Landlord didn't return your security deposit?

Here is a guide with everything you will need to know about New York security deposit laws, New York General Obligations Article 7 Sections 103-108, the Housing Stability and Tenant Protection Act of 2019, and the necessary tools get your security deposit back.

Some of the questions answered in this article:

• What should I do before moving out?

• What does the New York Security Deposit law say?

• What are my options if my landlord improperly withholds my security deposit?

• How much can I sue for in small claims court?

Did you know we have a free tool powered by AI that helps you create a formal letter to your landlord requesting your security deposit back? This is one of the first steps tenants take before escalating their dispute to small claims court. Check out our demand letter tool.

Overview of New York Security Deposit Law 

Here is our security deposit 50-state guide for more information on security deposits outside of NY. 

What Should I Do Before Moving Out?

The best offense is a good defense, so it’s important to make sure you do everything you can to ensure you’ll get your deposit back before anything goes wrong.

Move-In Inspection

Once you sign your lease, but before you move into the apartment, your landlord must offer you the chance to inspect the apartment with them (the landlord or their agent) to inspect the apartment’s condition.

If you do end up requesting an inspection, both you and the landlord or their agent can make note of any damages and defects in what is sometimes called the “Precondition Agreement.” (See GOL § 7-108(1-a)(c)). This inspection can be crucial because your landlord is not allowed to deduct any money from your security deposit for any damage or defect written in the Precondition Agreement. 

Take Photos

Photo evidence is one of the keys to keeping your security deposit, as it can help you prove in what condition the apartment was in before you moved in. 

• When you first move in, make sure to have a camera so that you can make a record of what the unit looked like before you started living there. 

• This is especially important if your unit has any pre-existing damage (scuff marks, stains, etc.) left by previous tenants. If it does, be sure to write down a list of everything you find and contact your landlord about getting the damage repaired. Or request a move-in inspection as described in the previous section. 

• Since a move-in inspection is not required, having thorough documentation of all pre-existing damage can make the difference between winning or losing a small claims suit. 

• No matter the situation, it is better to have the evidence and never need it than to have money deducted from your New York security deposit for the damage a previous tenant caused and no way to prove that damage was already there.  

Declare Your Move-Out

The most important step in moving out is looking over your lease, as there might be certain clauses you agreed to when you signed the lease. For example, the standard policy in New York City is to give your landlord a 30-day notice of your intent to vacate (NOTE: 30 days is not the same as 1 month). 

Some common things to include in your notice to vacate are listed below for your convenience:

• The address you are moving from so that your landlord has a point of reference

• The date you write the letter

• The date you intend to move out

• When you’ll be available for a move-out inspection with your landlord (provide a range of times, just in case)

• Your new forwarding address

Clean Thoroughly

It is very common for landlords to hire a cleaning service after a tenant moves out of their unit, this is a very common reason to lose some of your security deposit. One way to avoid this is to make sure you leave the unit in as good of a condition as you can before moving out. 

Aside from general cleaning, here are some common repairs that you can do to your unit before moving out that can save you some of your security deposit:

• Patch any holes in your walls

• If you’ve painted your walls, repaint them to the pre-approved color they came in. You can do this by taking a chip of the original paint to a hardware store, where it can be precisely color-matched.

• Clean any stains on rugs or carpets thoroughly 

• Remove water stains on window sills and wood floors

• Clean off all surfaces, including inside of drawers, cupboards, and cabinets

• Unclog shower and sink drains, as well as toilets

• Reattach any shutters or doors that have been taken off their hinges

• Treat wood floor scuffs and replace broken tiles

• Disinfect and deep clean areas like the bathroom and kitchen

In some lease agreements, all minor repairs are the renter’s responsibility. However, “normal wear-and-tear” such as nail holes and older, broken appliances are not the renter's responsibility. (NY Gen Oblig. Section 7-108(1-a)(b))

What Does New York Security Deposit Law Say?

Below, we have summarized and answered some of the most common questions regarding New York Security Deposit Laws. If there are still any questions that we did not cover, the relevant code for security deposit refunds is General Obligations (GOB) Chapter 24-A, Article 7.

How Much Can My Landlord Charge for a Security Deposit in New York?

According to security deposit laws in New York, landlords are not permitted to request more than the equivalent of one month's rent as a security deposit.

This can be seen in New York General Obligations section 7-108(1-a)(a):

“No deposit or advance shall exceed the amount of one month’s rent under such contract, unless the deposit or advance is for an owner-occupied cooperative apartment as provided for in subdivision six of this section.”

This is further discussed in the Housing Stability and Tenant Protection Act of 2019, which echoes section 7-108(1-a)(a). An agent representing a landlord or a landlord may not request a security deposit greater than one month’s rent, regardless of the length of the tenancy. 

Can a New York Landlord Charge Non-refundable Fees?

In New York, the Security deposit is always considered the property of the tenant, therefore, unless the landlord has the right to deduct it from the security deposit, it must be returned.

This being said, no law prohibits the landlord from having other non-refundable fees in the lease, such as a “move-in fee.” This is one reason why reviewing your lease before signing can be so important, as oftentimes, these fees can be negotiated with the landlord.

How Long Does My Landlord Have to Return My Security Deposit in New York?

According to New York security deposit law, your landlord has 14 days to provide you and any co-tenants with an itemized statement explaining any deductions to your security deposit. If the 14 days go by and your landlord has not given an itemized statement and the remainder of the security deposit, they lose any right to keep a portion of the security deposit and must return it to you in full. 

This is all discussed in New York General Obligations section 7-108(1-a)(e):

“Within fourteen days after the tenant has vacated the premises, the landlord shall provide the tenant with an itemized statement indicating the basis for the amount of the deposit retained, if any, and shall return any remaining portion of the deposit to the tenant. If a landlord fails to provide the tenant with the statement and deposit within fourteen days, the landlord shall forfeit any right to retain any portion of the deposit.”

The 14-day period is specified in the Housing Stability and Tenant Protection Act of 2019 as well. 

What Can My Landlord Legally Deduct From My Security Deposit?

There are a few items that New York security deposit law allows your landlord to deduct from your security deposit. 

Here is a list of what your landlord can deduct from your security deposit:

1. Non-payment of rent.

2. Damage caused by the tenant beyond normal wear and tear.

3. Non-payment of utility charges payable to the landlord per the lease.

4. Moving and storage of the tenant’s belongings.

New York General Obligations section 7-108(1-a)(b) discusses this:

“The entire amount of the deposit or advance shall be refundable to the tenant upon the tenant’s vacating of the premises except for an amount lawfully retained for the reasonable and itemized costs due to non-payment of rent, damage caused by the tenant beyond normal wear and tear, non-payment of utility charges payable directly to the landlord under the terms of the lease or tenancy, and moving and storage of the tenant’s belongings. The landlord may not retain any amount of the deposit for costs relating to ordinary wear and tear of occupancy or damage caused by a prior tenant.”

Is a Walkthrough of the Unit Required Before Moving Out?

The following information applies in situations where a tenant provides at least a 2-week notice to the landlord. 

• It is the landlord's responsibility to inform the tenant in writing that they have the right to request an inspection of the premise and that the tenant has the right to be present at the inspection. 

• If the tenant chooses to request this inspection, the landlord must agree to a time that takes place no earlier than 2 weeks before the move-out, but no later than 1 week before the move-out. The landlord must also give the tenant written notice with the date and time at least 48 hours before the inspection. 

• Following the inspection, your landlord must provide you with an itemized list of things that they intend to deduct from your security deposit. 

• Now, you, the tenant, have the opportunity to remedy any of these concerns to save from their security deposit. 
  

New York General Obligations section 7-108(1-a)(d) discusses this:

“Within a reasonable time after notification of either party’s intention to terminate the tenancy, unless the tenant terminates the tenancy with less than two weeks’ notice, the landlord shall notify the tenant in writing of the tenant’s right to request an inspection before vacating the premises and of the tenant’s right to be present at the inspection. If the tenant requests such an inspection, the inspection shall be made no earlier than two weeks and no later than one week before the end of the tenancy. The landlord shall provide at least forty-eight hours written notice of the date and time of the inspection. After the inspection, the landlord shall provide the tenant with an itemized statement specifying repairs or cleaning that are proposed to be the basis of any deductions from the tenant’s deposit. The tenant shall have the opportunity to cure any such condition before the end of the tenancy. Any statement produced pursuant to this paragraph shall only be admissible in proceedings related to the return or amount of the security deposit.”

What If the Landlord is Withholding My Security Deposit Illegally?

According to New York security deposit laws, if any landlord is found to be violating any of the above provisions, they are liable for the actual damages; in this situation, it means any amount of your security deposit they illegally kept from you.

Even worse, if a landlord is found to have “willfully,” i.e., purposely and knowingly violated any of these provisions, then they are liable for punitive damages up to twice the amount of the security deposit on top of the actual damages they are responsible for. 

New York General Obligations section 7-108(1-a)(g) discusses this:

“ Any person who violates the provisions of this subdivision shall be liable for actual damages, provided a person found to have willfully violated this subdivision shall be liable for punitive damages of up to twice the amount of the deposit or advance.”

What Are My Options If My Landlord Improperly Withholds My Security Deposit?

Security Deposit Demand Letter

Besides taking legal action against your landlord, you can request your security deposit back by sending a New York security deposit demand letter. 

A demand letter is a letter that outlines a set of requests. For example, you could request a refund of your security deposit and explain why you are requesting a refund. 

If you eventually decide to sue your landlord in New York small claims court over your security deposit, we recommend you first request your security deposit back before you sue your landlord. While you can request your money or property back orally, it is recommended you do so in writing in the form of a demand letter so that there is a physical record.

To be effective, your letter should answer the following questions:

• How much money are you owed? Ie. how much you paid for a security deposit

• Why are you owed money?

• What is your contact information? How can your landlord reach you?

• Where should your landlord send payment? 

• The address of your rental unit and the dates you rented from

• Why you are entitled to a return of a portion or all of the deposit

• The state laws that require a return of the deposit in a timely manner

• The penalties for not returning the deposit as required by law

Finally, you may want to consider giving your landlord 14 days to respond to you. Include this in your letter, and state that if they do not respond within that time, you intend to sue them. 

Need a security deposit demand letter template or a different state? Check out our article here.

Mediation 

In New York, there are two major potential remedies available to you free of charge if you're hesitant to initiate a lawsuit.

Online Dispute Resolution (ODR)

• ODR is a free service offered in many New York courts. 

• 24/7 Service in which negotiation and conversation can happen between the parties to come to a mutual agreement without having to go to court.

• A court-assigned mediator can join the conversation to help with the mediation process.

Mediation

• Most New York courts host free mediation.

• Bring all your evidence and work through the conflict with the other party and a mediator (a neutral third party). 

• A mediator will not decide the case for you during the mediation, they are only there to facilitate a conversation between you and your landlord. 

Both mediation and ODR are available to you at any point during the small claims process. If they don’t work out, you don’t need to worry. Just simply continue with your small claims lawsuit and prepare for a hearing in front of a judge.  

File a Complaint Against Your Landlord 

You may be able to file a complaint against a landlord that has kept your security deposit with a government or nongovernment agency. 

Here are some organizations that allow you to file a complaint against a landlord or apartment complex: 

• The New York State Department of Home and Community Renewal (DHCR) allows tenants to file several types of complaints depending on their situation. For example, if your landlord demands that you pay more than one month's security, and you live in a rent-regulated apartment, you can file a "Tenant's Complaint of Rent Overcharges and/or Excess Security Deposit.” For that form and other tenant complaint forms, use the link here. 

• The New York State Attorney General serves as both the “People's Lawyer” and New York’s chief legal officer. The Attorney General serves all New Yorkers in numerous matters affecting their daily lives, including certain landlord/tenant issues. For example, the office of the Attorney General handles complaints regarding security deposits or rental application fees. Use the link here to file a complaint with the New York Attorney General. 

• The Better Business Bureau (“BBB”) is a non-profit that serves as an intermediary between apartment complexes/ large landlords and consumers. You will not find an individual landlord on the BBB. The larger the apartment complex or landlord you rented from, the more likely they are to be found on the BBB. Learn how to file a complaint.

If you cannot solve your dispute after filing a complaint, you may want to consider suing your landlord in small claims court.

Overview of New York Small Claims Court 

Here are some quick facts about small claims court: 

Learn more about how the New York small claims process with our guide.

Why Sue in a New York Small Claims Court?

If you're considering suing your landlord in small claims court to recover your security deposit, you may think it's a complicated process. However, small claims court was created to provide a simpler, more accessible path to justice for individuals seeking resolution for smaller claims that lawyers may reject or overcharge for. 

These simplified procedures of court and evidence make it easier for the average person to navigate the process and take their landlords to court with confidence.

How much can I sue for in New York small claims court?

This is known as the “small claims court limit.” 

• In New York City, you can sue for a maximum of $10,000. 

• Outside of New York City, the limits range by court between $3,000 to $5,000. 

How much does it cost to file a lawsuit in New York Small Claims Court?

In New York, the cost of filing a lawsuit depends on the amount you are suing for. If you are an individual suing another individual or business, you will pay: 

•  $15 for claims up to $1000, and 

•  $20 for claims over $1000.

If you are low-income and cannot afford to pay filing costs, you can apply for a waiver of your court fees: 

• To apply for this waiver, you should call the court clerk’s office, as the requirements vary from judge to judge. Generally, you will have to go in person to the courthouse to make a statement under oath.

• This waiver is unfortunately named the Poor Person Relief, but don't allow the name to drive you away if it is something that you need.

The Hearing

People tend to think of court hearings as complicated, confusing, and emotionally intense events — but in the case of the Small Claims Court, it’s quite simple and straightforward. 

Here we’ve laid out some of the main elements of a security deposit hearing: 

• First, you do not need a lawyer for your security deposit lawsuit. You can represent yourself at the hearing. 

• If you and your landlord both attend the hearing, the judge will ask you both to show each other the evidence you’ve brought before the hearing officially begins. Then, the judge will ask you why you are suing, and your landlord will get the opportunity to present their side of the story. 

• The judge will then ask you to show them your evidence.

• Sometimes, the judge will keep the evidence, so make sure you’re not showing them screenshots or photos on your phone. 

• The entire small claims hearing should only be a couple of minutes, but it could be longer. 

• If you show up, but your landlord does not, you do not automatically win your case. You will still need to prove to the judge why you should win.

• It’s rare that a judge will tell you which side won right away. Typically, the judge’s decision will be mailed to you, which usually takes a few days. Be patient!

Up next: Guide to New York Small Claims.