New York Security Deposit Rules: Return Deadline, Penalties and What You Can Claim

New York requires landlords to return the security deposit within 14 days. This page lists the deadline, the statutory penalty multiplier, the deductions a landlord may lawfully make, and the official statute text — every figure below links to the primary source.

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Return deadline

14 days

Measured from the day you vacated the premises.

“Return the balance” and “provide an itemized statement” are two separate obligations, and both must be completed within 14 days. Failing either one automatically forfeits every deduction right.

N.Y. Gen. Oblig. Law § 7-108(1-a)(e) ↗

Penalty multiplier

The figures below are what a statute authorises. Whether you can actually collect them depends on the facts — a multiplier that requires a court finding is not automatic.

Deposit cap and lawful deductions

Cap: No more than one month’s rent (§ 7-108(1-a)(a), added by the 2019 HSTPA). Buildings with 6+ units must hold the deposit in an interest-bearing account; the landlord may retain a 1% administrative fee (§ 7-103).

Landlord may deduct for

  • Actual cost of repairing damage (landlord must prove it)
  • Unpaid rent
  • Other lawful charges specified in the lease

Landlord may not deduct for

  • Normal wear and tear
  • Deductions not provided on time (all deduction rights forfeited)
  • Unsubstantiated damage claims

Burden of proof

§ 7-108(1-a)(f): in any deposit lawsuit, the burden of proving the reasonableness of a deduction sits with the landlord. You only need to state that you did not cause the damage. This is the most tenant-favorable burden allocation among these five states.

N.Y. Gen. Oblig. Law § 7-108(1-a)(f) ↗

What New York gives you that most other states do not

The strongest automatic forfeiture rule of these five states

The 14-day deadline imposes two obligations — return and itemize — and failing either automatically forfeits every deduction right, with no court finding of bad faith required. Compare California, where being late only creates a presumption of bad faith and the 2x remains at the court’s discretion. The same mistake costs you everything in one state and a lawsuit in another. Which state you are in determines how much you can get back.

N.Y. Gen. Oblig. Law § 7-108(1-a)(e) ↗

Move-in inspection record blocks deductions outright (§ 7-108(1-a)(c))

After signing the lease but BEFORE you move in, the landlord must offer you the opportunity to inspect the unit. If you request it, you and the landlord sign a written agreement recording the condition and every existing defect. Upon vacating, the landlord may not retain any part of the deposit for any condition, defect, or damage noted in that agreement. This is the only rule among these five states that can defeat a deduction without any argument about timelines — if you signed a condition report at move-in, every item on it is off the table. Note it is admissible as evidence of condition only in proceedings about the deposit, so keep it.

N.Y. Gen. Oblig. Law § 7-108(1-a)(c) ↗

Pre-move-out inspection right (§ 7-108(1-a)(d))

Unless you terminate with less than two weeks’ notice, the landlord must notify you in writing of your right to request an inspection before vacating and to be present at it. If you request one, it must occur no earlier than two weeks and no later than one week before the tenancy ends, with at least 48 hours’ written notice. Afterward the landlord must give you an itemized statement of the repairs or cleaning it proposes to charge for, and you get the chance to cure those conditions before move-out. That statement is only admissible in deposit proceedings. If the landlord never offered you this inspection, in New York City that is itself additional evidence of bad faith.

N.Y. Gen. Oblig. Law § 7-108(1-a)(d) ↗

Punitive 2x requires “willful”, not merely late (§ 7-108(1-a)(g))

The twice-the-deposit punitive damages are only available if the court finds the landlord “willfully” violated the section — that is, they knew the 14-day rule and broke it anyway. Honest mistake or good-faith lateness does not qualify. Courts treat willfulness as a factual question and weigh credibility heavily. This is worth knowing before you over-claim: the forfeiture in (1-a)(e) does not require willfulness at all, so the forfeiture is your reliable claim and the 2x is the bonus.

N.Y. Gen. Oblig. Law § 7-108(1-a)(g) ↗

Deposit capped at one month (§ 7-108(1-a)(a))

Since the 2019 Housing Stability and Tenant Protection Act, no residential security deposit or advance may exceed one month’s rent. The cap covers deposits and advances together — a landlord cannot charge a full month’s deposit plus a separate last month’s rent and exceed the cap. Amounts collected in violation are recoverable, and the excess triggers statutory damages. Rent-stabilized units follow § 7-107 instead.

N.Y. Gen. Oblig. Law § 7-108(1-a)(a) ↗

Escrow and interest (§ 7-103)

The deposit must be held in a trust account and not commingled; buildings with 6+ units must pay interest, and the landlord may retain a 1% administrative fee. Violations can be reported to the New York Attorney General.

N.Y. Gen. Oblig. Law § 7-103 ↗

What if the landlord refuses?

““You caused $2,000 in real damage, so I’m entitled to keep it.””

§ 7-108(1-a)(e) provides that a landlord who fails to complete both “return + itemization” within 14 days forfeits the right to withhold any part of the deposit — no court finding of bad faith required. Even if the damage claim is entirely valid, the moment the itemization arrived on day 15 the deduction right was already gone.

N.Y. Gen. Oblig. Law § 7-108(1-a)(e)

““I thought the lease end date was the vacating date, so I wasn’t late.””

The statute measures from “vacated the premises,” not the lease end date. Provide evidence of the date you actually returned the keys.

N.Y. Gen. Oblig. Law § 7-108(1-a)

““I gave you the itemization, I just didn’t return the balance.””

“Return the balance” and “provide an itemized statement” are two independent obligations that must both be completed within 14 days. Doing only one still forfeits every deduction right.

N.Y. Gen. Oblig. Law § 7-108(1-a)(e)

Small claims court

Venue
NYC: Small Claims Part, Civil Court | Outside NYC: County Court small claims division
Cap
$10,000 (New York City)
Attorney required
No

The New York City small claims cap is $10,000. The NYC Department of Consumer and Worker Protection and the Attorney General generally do not get involved in factual deduction disputes (such as “I really did not damage the wall”) — they handle procedural violations only.

Where sources disagree

Public sources conflict on the points below. We state the disagreement rather than hiding it.

Whether rent-stabilized tenants are covered by § 7-108

“Several protections extend to rent-stabilized tenants” — Language tied to the November 2025 § 7-107 amendments

“§ 7-107 protections are weaker” — Legislative history

This tool uses Flagged as “may differ — verify separately”. Sources disagree on whether rent-stabilized tenants fall under § 7-108. Rather than give a definitive answer, we flag it for verification so you are not misled.

Common questions

How long does a landlord have to return a security deposit in New York?

14 days, counted from the day you vacated the premises. N.Y. Gen. Oblig. Law § 7-108(1-a)(e).

Can I get more than my deposit back in New York?

2x the full deposit, only if a court finds willful. N.Y. Gen. Oblig. Law § 7-108(1-a)(g).

Do I need a lawyer to file in New York small claims court?

No — The New York City small claims cap is $10,000. The NYC Department of Consumer and Worker Protection and the Attorney General generally do not get involved in factual deduction disputes (such as “I really did not damage the wall”) — they handle procedural violations only.

What can a landlord not deduct from my New York deposit?

The statute does not permit deductions for: normal wear and tear; deductions not provided on time (all deduction rights forfeited); unsubstantiated damage claims.