New York Security Deposit Law: Limits, Deadlines, and Penalties
What New York landlords can charge, when deposits must be returned, and what it costs to get it wrong. Last reviewed 2026-08-12.
How much can a landlord charge in New York?
Under the 2019 Housing Stability and Tenant Protection Act, no deposit or advance may exceed one month's rent, and deposits cannot be combined with prepaid rent to exceed that line. Exceptions exist for seasonal-use units and owner-occupied cooperative apartments; rent-controlled units and certain senior and assisted-living facilities are outside the statute.
No separate pet deposit is permitted — the one-month cap covers all deposits and advances combined, so a pet deposit on top of a full month's deposit is illegal.
When must the deposit be returned?
Within 14 days after the tenant vacates, the landlord must return the remaining deposit together with an itemized statement of any amounts retained. The clock runs from vacatur, and there are no statutory extensions.
An itemized statement showing the basis for every amount retained must be provided within 14 days; failing to provide it on time means the landlord forfeits the right to retain any portion of the deposit.
What happens if a landlord misses the deadline?
Missing the 14-day statement-and-return deadline forfeits the landlord's right to keep any of the deposit. A willful violation of the deposit rules additionally exposes the landlord to punitive damages of up to twice the deposit.
Interest and holding requirements
Only for buildings with six or more family dwelling units: the deposit must be placed in an interest-bearing account at a New York banking organization at the prevailing local rate, with the landlord entitled to retain 1 percent per year as an administrative fee and the rest of the interest belonging to the tenant. Smaller buildings have no interest requirement.
Every deposit remains the tenant's money and must be held in trust, never commingled with the landlord's personal funds. In buildings of six or more units it must sit in a New York bank account, and the landlord must notify the tenant in writing of the bank's name and address and the deposit amount.
Recent changes to the law
In November 2025, Governor Hochul signed S952B, amending GOL 7-108 to extend its protections — the 14-day return, itemized statements, and move-out inspection rights — to rent-stabilized apartments, which were previously excluded.
What New York landlords get wrong
New York layers inspection duties on top of the money rules: before move-in you must offer the tenant a walkthrough with a written condition agreement, and when the tenancy ends you must notify the tenant of their right to a move-out inspection held one to two weeks before they leave, on at least 48 hours' written notice, with an itemized list of proposed deductions the tenant can cure before departing. Commingling the deposit with personal funds is itself a violation, even for a single-unit landlord. The 14-day deadline is strict — a late itemization means you return everything regardless of actual damage.
The law itself
Frequently asked questions
How much security deposit can a landlord charge in New York?
One month's rent, period. Since the 2019 HSTPA, landlords cannot demand a larger deposit, cannot collect first and last month's rent plus a deposit, and cannot add a separate pet deposit on top — all deposits and advances combined must stay within one month. The only notable exceptions are seasonal-use units and owner-occupied co-ops.
How long does a New York landlord have to return a security deposit?
Fourteen days after you vacate the apartment. The landlord must send the remaining deposit plus an itemized statement explaining every amount kept. If the landlord misses the 14-day deadline, they forfeit the right to retain any of the deposit — even for legitimate damage — and willful violations can add punitive damages up to twice the deposit.
Do New York landlords have to pay interest on security deposits?
Only in buildings with six or more units. There, the deposit must be held in an interest-bearing account at a New York bank at the prevailing rate; the landlord may keep 1 percent per year as an administrative fee and the remaining interest belongs to the tenant. Landlords of smaller buildings owe no interest but still must hold the deposit in trust, uncommingled.
Can a tenant request a move-out inspection in New York?
Yes. After either party gives notice to end the tenancy, the landlord must tell you about your right to an inspection, held no earlier than two weeks and no later than one week before you move out, with at least 48 hours' written notice. The landlord must then give you an itemized list of proposed deductions, and you have the right to fix those issues before leaving.
Keep reading
Deposit deadlines are easy to miss — until they cost you triple.
Vantric tracks your leases, deposits, and move-out dates in one place, built for landlords with 1–10 units.
Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.