Maximum deposit: 1 month rent. Return deadline: 14 days. Everything landlords and tenants need to know about New York security deposit law.
Last updated: April 2026 · Data: IRS, BLS, state sources
| Rule | New York Law |
|---|---|
| Maximum Deposit | 1 month rent |
| Return Deadline | 14 days |
| Interest Required | Required for buildings with 6+ units (prevailing passbook rate) |
| Penalty for Violations | Landlord owes 2x deposit for willful failure |
| Normal Wear and Tear | Cannot be deducted |
New York limits security deposits to 1 month rent. Charging more than this amount is a violation of state law and may entitle the tenant to damages.
High-occupancy buildings must keep deposits in separate accounts
Regardless of the deposit amount, landlords must follow the correct procedures for holding, itemizing, and returning the deposit. Failure to follow these procedures can result in the landlord forfeiting the right to make deductions and owing penalties to the tenant.
After a tenant moves out, New York landlords have 14 days to either return the full security deposit or provide an itemized list of deductions along with any remaining balance. The clock typically starts on the date of move-out or the date the tenant provides a forwarding address, whichever is later.
If the landlord misses this deadline, the consequences can be severe: landlord owes 2x deposit for willful failure. Tenants should document their move-out with photos, return keys promptly, and provide a written forwarding address to establish the start of the deadline clearly.
Landlords in New York may deduct from the security deposit for:
Landlords cannot deduct for:
Document the unit's condition at move-in with a written checklist and photos signed by both parties. This documentation is critical in any deposit dispute.
Required for buildings with 6+ units (prevailing passbook rate). New York requires landlords to pay interest on security deposits under certain conditions. Make sure to track interest accrued and include it with the deposit return within the required timeframe.
If your landlord fails to return your deposit or provide an itemized statement within 14 days, you may be entitled to: landlord owes 2x deposit for willful failure.
Steps to take if your landlord violates New York security deposit law:
Calculate your security deposit maximum, estimate any interest owed, and determine the exact return deadline based on your New York move-out date.
Open New York Security Deposit CalculatorNew York limits security deposits to 1 month rent. High-occupancy buildings must keep deposits in separate accounts
New York landlords have 14 days after move-out to return the deposit or provide an itemized statement of deductions. If the landlord misses this deadline: landlord owes 2x deposit for willful failure.
Normal wear and tear in New York refers to the expected deterioration from ordinary residential use: minor scuffs on walls, small nail holes from hanging pictures, faded paint, and worn carpet from foot traffic. Landlords cannot deduct for these. They can deduct for actual damage such as large holes in walls, broken fixtures, deep carpet stains, or damage caused by pets, negligence, or misuse.