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New York security deposit rules for landlords
How much you can take, where to keep it, and how to return it on time. Miss the 14-day deadline and you can lose the right to keep any of it.
Updated October 25, 2026. Every rule below links to its official source; see all of them on our Legal sources page.
How much you can collect
Under General Obligations Law § 7-108, a security deposit can't be more than one month's rent. The limit covers any "advance" too, so you can't take last month's rent on top of a full month's deposit. The NY Attorney General's tenants' rights guide says the same.
The same law has no small-landlord exemption. It covers most rentals in the state; rent-stabilized and rent-controlled units follow their own rules.
Where to keep it
GOL § 7-103 says the deposit stays the tenant's money:
- Hold it in trust. Don't mix it with your own money.
- If you put it in a bank, use one with a place of business in New York, and tell each tenant in writing the bank's name and address and the amount.
- An interest-bearing account is required for buildings with six or more apartments. You may keep 1% a year for administration; the rest of the interest belongs to the tenant.
- A lease clause waiving these rules is void.
Inspections
Move-in: after the lease is signed and before the tenant moves in, offer a joint inspection. If the tenant wants one, you both sign a written statement of the unit's condition.
Move-out: once either side gives notice that the tenancy is ending, tell the tenant in writing that they can ask for an inspection before they move out and be there for it. It takes place one to two weeks before the end, with 48 hours' written notice. You then give an itemized list of proposed deductions, and the tenant can fix the issues before leaving. (This doesn't apply if the tenant gives less than two weeks' notice.)
What you can deduct
Only reasonable, itemized costs for:
- unpaid rent;
- damage beyond normal wear and tear;
- unpaid utilities the lease makes the tenant pay to you;
- moving and storing belongings the tenant left behind.
Nothing for ordinary wear and tear, and nothing for damage left by a previous tenant.
The 14-day deadline
Within 14 days after the tenant moves out, give an itemized statement of any deductions and return the rest. If you miss it, you lose the right to keep any part of the deposit. The landlord has the burden of proving deductions, and a willful violation can mean punitive damages of up to twice the deposit (GOL § 7-108).
Our NY security deposit statement page counts the 14 days for you.
Fees that aren't allowed
RPL § 238-a bars application, processing and similar move-in fees, except a background or credit check fee of up to $20 (or the actual cost, if less). Key money isn't allowed either, per the Attorney General's guide.
Put it in the lease
Our New York lease won't let you enter a deposit over one month's rent, and it includes the move-in inspection offer, the bank notice and the 14-day return clause.
Want a lease that already does all this?
Answer one question at a time. We keep the numbers within your state's limits and attach the required disclosure pages. New leases and renewals.
Frequently asked questions
What is the maximum security deposit in New York?
One month's rent, under General Obligations Law § 7-108. That includes any advance such as last month's rent.
How long does a NY landlord have to return a security deposit?
14 days after the tenant moves out, with an itemized statement of any deductions. A landlord who misses the deadline loses the right to keep any part of the deposit (GOL § 7-108).
Do NY landlords have to pay interest on security deposits?
An interest-bearing account is required for buildings with six or more apartments (GOL § 7-103). The landlord may keep 1% a year for administration. Smaller landlords must still hold the deposit in trust and not mix it with their own money.
Can a NY landlord keep the deposit for normal wear and tear?
No. Deductions are limited to unpaid rent, damage beyond normal wear and tear, unpaid utilities owed under the lease, and moving or storing the tenant's belongings.