Security Deposit Return Deadlines & Deductions in New York
At a glance
| Governing law | N.Y. Gen. Oblig. Law §§ 7-103, 7-108 |
|---|---|
| Deadline to return the deposit | 14 days after the tenant vacates the premises |
| Itemized statement required? | Yes — a written itemized statement of the basis for any amount retained, due within the same 14 days; missing it forfeits the landlord's right to keep any of the deposit |
| What can be deducted | Unpaid rent, damage caused by the tenant beyond normal wear and tear, unpaid utility charges payable directly to the landlord, and moving/storage of the tenant's belongings. Ordinary wear and tear and damage caused by a PRIOR tenant may never be deducted. |
| Maximum deposit amount | 1 month's rent for most units (exceptions for seasonal-use dwellings and owner-occupied cooperative apartments) |
| Interest on the deposit? | Required only for buildings with 6 or more residential units, at the prevailing rate paid on such deposits in the area; the landlord may keep 1%/year as an administration fee |
| Penalty for a late/bad-faith withholding | Actual damages for any violation; a WILLFUL violation adds punitive damages of up to 2x the deposit. Missing the 14-day statement/return deadline is a separate, automatic forfeiture of the right to retain any amount. The landlord bears the burden of proving any retained amount was reasonable. |
| Separate account or bond required? | Yes — the deposit is held in trust and may not be commingled with the landlord's own funds; a 6+ unit building must additionally use an interest-bearing account |
New York rule
For most residential rentals, New York requires an itemized statement and return of any remaining deposit within 14 days after the tenant vacates. Missing both duties forfeits the landlord's right to keep any of the deposit (Gen. Oblig. Law § 7-108(1-a)(e)). Most deposits are capped at one month's rent. All are held in trust, and deposits for buildings with six or more family dwelling units must earn interest (§ 7-103).
Requirements one by one
Deadline and itemization
Section 7-108(1-a)(e) says: "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." Failure to provide the statement and deposit within that period forfeits any right to retain a portion. The clock runs from vacating, and the itemization shares the return deadline.
Deductions and deposit cap
Under § 7-108(1-a)(b), reasonable itemized deductions may cover unpaid rent, damage caused by the tenant beyond normal wear and tear, unpaid utilities payable directly to the landlord under the tenancy, and moving and storage of the tenant's belongings. The section expressly bars charges for ordinary wear and tear and damage caused by a prior tenant. GOL § 7-108(1-a)(a) caps most deposits at one month's rent, with exceptions for qualifying seasonal-use units and owner-occupied cooperative apartments.
Interest and segregation
The deposit remains the tenant's money, held in trust and not mixed with the landlord's personal funds (§ 7-103(1)). For property containing six or more family dwelling units, it must be deposited in an interest-bearing account at the prevailing local rate (§ 7-103(2-a)). The person holding an interest-bearing deposit may retain an administration amount equivalent to one percent per year (§ 7-103(2)).
Penalty
Missing the 14-day statement-and-return deadline forfeits the right to retain any deposit (§ 7-108(1-a)(e)). Any violation of the subdivision carries actual damages; a willful violation can add punitive damages up to twice the deposit. The landlord bears the burden of proving a retained amount was reasonable (§ 7-108(1-a)(f)-(g)).
What trips people up
Prior-tenant damage is expressly excluded. A deduction for damage someone else caused is barred even apart from the ordinary wear-and-tear rule. Interest depends on building size. The six-unit trigger does not affect the separate duty to hold every deposit in trust.
Statutes and sources
- N.Y. Gen. Oblig. Law § 7-108(1-a), current official text: https://www.nysenate.gov/legislation/laws/GOB/7-108 (accessed 2026-10-07).
- N.Y. Gen. Oblig. Law § 7-103, current official text: https://www.nysenate.gov/legislation/laws/GOB/7-103 (accessed 2026-10-07).
Source links
Every statute quoted above, linked, with the date we checked it.
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