SECURITY DEPOSIT DEMAND LETTER
STATE OF NEW YORK
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL
[DATE]
[LANDLORD/PROPERTY MANAGER NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]
Re: DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [RENTAL ADDRESS]
Lease Start Date: [DATE]
Move-Out Date: [DATE]
Security Deposit Amount: $[AMOUNT]
Dear [LANDLORD/PROPERTY MANAGER NAME]:
This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to return the security deposit for the above-referenced rental property in accordance with New York law. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable damages and interest.
I. NEW YORK LEGAL FRAMEWORK
A. Governing Law
Security deposits in New York are governed by New York General Obligations Law (GOL) Sections 7-103, 7-105, 7-107, and 7-108. The Housing Stability and Tenant Protection Act of 2019 significantly strengthened tenant protections.
B. Security Deposit Limits
Under GOL Section 7-108.1-a (effective June 14, 2019), a landlord may not demand or receive a security deposit in excess of one month's rent for most residential rentals. This limit includes all advance payments except the first month's rent. If you collected a deposit exceeding this amount, you have violated New York law.
C. Return Deadline
Pursuant to GOL Section 7-108(1-a), a landlord must return the security deposit within fourteen (14) days after:
1. The tenant has vacated the premises
The deposit must be returned with an itemized statement accounting for any amounts withheld.
D. Itemization Requirements
Under GOL Section 7-108(1-a), the landlord must provide:
- An itemized statement indicating the basis for the amount of the deposit retained, if any
- The statement must accompany any returned deposit or be provided within 14 days if the full deposit is retained
E. Interest Requirements
Under GOL Section 7-103, for buildings containing six or more residential units:
- The landlord must deposit security funds in an interest-bearing account in a New York banking organization
- The landlord may retain an annual 1% administrative fee
- The remaining interest belongs to the tenant
- The tenant may request interest be credited toward rent annually
F. Permissible Deductions
Under GOL Section 7-108, a landlord may retain from the security deposit only amounts for:
- Unpaid rent
- Damage caused by the tenant beyond normal wear and tear
- Actual documented costs with receipts or invoices
G. Prohibited Deductions
The landlord may NOT deduct for:
- Normal wear and tear
- Conditions existing prior to tenant's occupancy
- Conditions resulting from landlord's failure to maintain premises
- Routine cleaning and repainting between tenancies
- Amounts not supported by receipts or invoices
II. FACTUAL BACKGROUND
A. Tenancy Information
| Item | Details |
|---|---|
| Tenant Name(s) | [FULL NAME(S) OF ALL TENANTS] |
| Property Address | [COMPLETE ADDRESS] |
| Lease Commencement | [DATE] |
| Lease Expiration/Move-Out | [DATE] |
| Monthly Rent | $[AMOUNT] |
| Security Deposit Paid | $[AMOUNT] |
| Date Deposit Paid | [DATE] |
| Building Size | [ ] 6+ units [ ] Fewer than 6 units |
| Total Deposits Paid | $[TOTAL] |
B. Move-Out Circumstances
Notice Provided:
- Date Notice Given: [DATE]
- Notice Period: [NUMBER] days
- Method of Delivery: [ ] Hand-delivered [ ] Certified mail [ ] Email
Move-Out Details:
- Date Keys Returned: [DATE]
- Forwarding Address Provided: [ ] Yes [ ] No
- Date Forwarding Address Provided: [DATE]
- Move-Out Inspection: [ ] Requested [ ] Conducted [ ] Refused by Landlord [ ] Not offered
C. Condition of Premises at Move-Out
Our Client left the premises in the following condition:
[ ] Clean and in good repair - The premises were left in substantially the same condition as when our Client took possession, reasonable wear and tear excepted.
[ ] Professionally cleaned - Our Client hired [CLEANING COMPANY NAME] to professionally clean the premises on [DATE].
[ ] All personal property removed - All of our Client's personal belongings were removed from the premises.
[ ] No damage beyond normal wear and tear - Any changes to the premises were the result of normal, expected use during the tenancy.
[ ] Move-in/Move-out photos - Our Client has photographic documentation of the condition of the premises at both move-in and move-out.
III. LANDLORD'S VIOLATIONS
You have violated New York law in the following ways:
[ ] Failure to Return Deposit: You have failed to return any portion of the security deposit within the statutory 14-day period required under GOL Section 7-108(1-a).
[ ] Failure to Provide Itemization: You have failed to provide a written, itemized statement of deductions within the statutory period.
[ ] Excessive Security Deposit: You collected a security deposit exceeding one month's rent in violation of GOL Section 7-108.1-a.
[ ] Failure to Pay Interest: You failed to pay accrued interest on the deposit as required by GOL Section 7-103.
[ ] Failure to Hold in Proper Account: You failed to hold the deposit in an interest-bearing account in a NY banking organization.
[ ] Improper Deductions: You have made deductions that are not permitted by law, including:
- [ ] Deductions for normal wear and tear
- [ ] Deductions for pre-existing conditions
- [ ] Deductions not supported by receipts or invoices
- [ ] Deductions exceeding actual cost of repairs
- [ ] Other improper deductions: [SPECIFY]
[ ] Bad Faith/Willful Retention: You have willfully retained the deposit in bad faith, as evidenced by: [DESCRIBE EVIDENCE OF BAD FAITH]
IV. NORMAL WEAR AND TEAR
New York law distinguishes between "damage" for which a tenant may be charged and "normal wear and tear" for which a tenant may not be charged. Normal wear and tear includes deterioration that results from the intended use of the premises and ordinary operation of natural forces over time.
The following items, if deducted, constitute normal wear and tear and are NOT permissible deductions:
[ ] Minor scuff marks on walls from furniture
[ ] Small nail holes from hanging pictures
[ ] Worn carpet in traffic areas
[ ] Faded paint or wallpaper
[ ] Minor scratches on hardwood floors
[ ] Worn finish on bathroom fixtures
[ ] Slightly dirty mini-blinds
[ ] Dust or minor dirt requiring standard turnover cleaning
[ ] Worn door handles or locks
[ ] Other: [SPECIFY]
V. DAMAGES AND REMEDIES
A. Return of Security Deposit and Interest
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Accrued Interest (minus 1% admin fee) | $[AMOUNT] |
| Total Deposits and Interest Due | $[AMOUNT] |
B. Statutory Remedies
Under GOL Section 7-108(1-a), if a landlord fails to provide an itemized statement within 14 days:
- The landlord forfeits all rights to retain any portion of the deposit
Under case law and GOL Section 7-103, if a landlord willfully violates security deposit requirements:
- The tenant may recover punitive damages
- The tenant may recover up to twice the deposit amount
C. Attorney's Fees and Costs
Attorney's fees may be recoverable under lease terms or in the court's discretion.
D. Total Demand
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Accrued Interest | $[AMOUNT] |
| Punitive/Penalty Damages | $[AMOUNT] |
| Attorney's Fees to Date | $[AMOUNT] |
| TOTAL DEMAND | $[AMOUNT] |
VI. EVIDENCE IN OUR POSSESSION
Our Client has preserved the following evidence to support this claim:
[ ] Original lease agreement
[ ] Receipt or cancelled check for security deposit payment
[ ] Move-in inspection report/checklist
[ ] Move-out inspection report/checklist (if conducted)
[ ] Photographs of premises at move-in (dated)
[ ] Photographs of premises at move-out (dated)
[ ] Video walkthrough at move-out
[ ] Copy of written notice to vacate
[ ] Proof of delivery of notice and forwarding address
[ ] Receipts for professional cleaning
[ ] Correspondence with landlord regarding deposit
[ ] Landlord's itemized statement (if provided)
[ ] Records of interest accrued
[ ] Witness statements regarding condition of premises
[ ] Utility final bills showing service through move-out date
[ ] Other: [SPECIFY]
VII. DEMAND
We hereby demand that you take the following actions within fourteen (14) days of the date of this letter:
-
Return of Deposit and Interest: Pay to our Client the full amount of the security deposit plus accrued interest: $[AMOUNT]
-
Total Payment: The total amount due is $[TOTAL AMOUNT]
Payment should be made by certified check or money order, payable to [TENANT NAME], and sent to:
[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]
Reference: [TENANT NAME] Security Deposit
VIII. CONSEQUENCES OF NON-COMPLIANCE
If you fail to comply with this demand within the time specified, we are authorized and prepared to:
-
File Suit: Commence legal action in New York Small Claims Court (up to $10,000 in City Court; $5,000 in Town/Village Court), Civil Court, or Supreme Court for return of the deposit, interest, punitive damages, and costs.
-
Seek Full Deposit: If you failed to provide an itemized statement within 14 days, demand the court award the full deposit amount pursuant to GOL Section 7-108(1-a).
-
Seek Punitive Damages: For willful violations, request the court award punitive damages up to twice the deposit amount.
-
Report Violations: Report your conduct to:
- New York State Attorney General - Consumer Protection Division
- NYC Department of Housing Preservation and Development (NYC properties)
- New York State Division of Housing and Community Renewal (rent-regulated units)
- Better Business Bureau -
Judgment Enforcement: Upon obtaining judgment, pursue all legal means of collection, including garnishment, levy, and lien on property.
IX. RESPONSE REQUESTED
Please respond to this demand in writing within fourteen (14) days. Your response should include:
- Your position on the amount owed to our Client
- Any documentation supporting claimed deductions
- Payment or a good-faith settlement offer
If we do not receive a satisfactory response, we will file suit without further notice.
X. RESERVATION OF RIGHTS
This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent negotiations.
Respectfully submitted,
[LAW FIRM NAME]
By: _________________________________
[ATTORNEY NAME]
[NEW YORK BAR REGISTRATION NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]
Attorneys for [TENANT FULL NAME]
ENCLOSURES:
[ ] Copy of lease agreement
[ ] Copy of security deposit receipt
[ ] Move-in/move-out photographs
[ ] Copy of notice to vacate
[ ] Copy of forwarding address notification
[ ] Copy of landlord's itemization (if any)
[ ] Cleaning receipts
[ ] Authorization to represent
cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]
NEW YORK SECURITY DEPOSIT QUICK REFERENCE
| Element | New York Requirement |
|---|---|
| Governing Statute | GOL Sections 7-103, 7-105, 7-107, 7-108 |
| Deposit Limit | 1 month's rent (post-June 14, 2019) |
| Return Deadline | 14 days |
| Itemization Required | Yes |
| Receipt Required | No |
| Interest Required | Yes (6+ unit buildings) |
| Separate Account Required | Yes (6+ unit buildings, interest-bearing) |
| Penalty for Violation | Forfeiture; up to 2x deposit for willful violation |
| Attorney's Fees | Per lease or court discretion |
| Small Claims Limit | $10,000 (City); $5,000 (Town/Village) |
NEW YORK-SPECIFIC PRACTICE NOTES
[ ] 14-Day Deadline: New York's 14-day deadline is one of the shortest in the nation. Failure to comply results in forfeiture of all deduction rights.
[ ] 2019 Law Changes: The Housing Stability and Tenant Protection Act of 2019 made significant changes, including limiting deposits to one month's rent.
[ ] Interest Requirement: For buildings with 6+ units, landlords must pay interest (minus 1% admin fee). Track interest owed.
[ ] Itemization Critical: The itemization must specify the basis for any deductions. Vague or unsupported deductions are prohibited.
[ ] NYC Specific: NYC has additional requirements through the NYC Administrative Code. Check local rules.
[ ] Rent-Regulated Units: Special rules apply to rent-stabilized and rent-controlled apartments. Verify regulatory status.
[ ] Housing Court: In NYC, consider filing in Housing Court which has specialized expertise.
[ ] Documentation Required: Landlords must support deductions with receipts or invoices for actual costs.
[ ] Punitive Damages: For willful violations, courts may award punitive damages up to twice the deposit amount.
This template is for informational purposes only and does not constitute legal advice. Security deposit laws may vary by locality. Consult a licensed New York attorney before use.