Security Deposit Demand Letter - New York

SECURITY DEPOSIT DEMAND LETTER

STATE OF NEW YORK

GOL §§ 7-103, 7-107, and 7-108

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

[__/__/____]

[LANDLORD/PROPERTY MANAGER NAME]
[ADDRESS LINE 1]
[CITY, STATE ZIP]

Re: FORMAL DEMAND — RETURN OF SECURITY DEPOSIT
Former Tenant(s): [TENANT FULL NAME(S)]
Rental Property Address: [FULL RENTAL ADDRESS]
Lease Term: [__/__/____] through [__/__/____]
Move-Out / Possession Delivered Date: [__/__/____]
Security Deposit Amount: $[________________________________]
Applicable 14-Day Return Deadline: [__/__/____]

Dear [LANDLORD/PROPERTY MANAGER NAME]:

This law firm represents [TENANT FULL NAME] ("Tenant") in connection with the security deposit for the above-referenced premises. This letter demands the deposit and accrued interest due under the applicable provisions of the New York General Obligations Law and reserves any claim for actual or punitive damages supported by the facts.

I. NEW YORK LEGAL FRAMEWORK

A. Select the Applicable Security-Deposit Track

Use the 14-day provisions in this letter only after selecting one track:

☐ Track A — GOL § 7-108(1-a): The dwelling is covered by § 7-108 and is not excluded by that subdivision. Section 7-108 is the principal track for covered non-rent-stabilized dwellings.

☐ Track B — GOL § 7-107, as amended by 2025 N.Y. Laws ch. 436: The dwelling is subject to the New York City Rent Stabilization Law or the Emergency Tenant Protection Act, and the lease, rental agreement, or renewal was entered on or after November 15, 2025.

☐ Neither / uncertain: Stop. Do not assert the 14-day rule from this template until New York counsel verifies the governing rent-control, rent-stabilization, senior-housing, assisted-living, or other special regime.

For Track A, GOL § 7-108(1-a)(a)-(g) supplies the one-month cap, permissible deductions, inspection rights, 14-day return and itemization deadline, burden of proof, and damages. For Track B, amended GOL § 7-107(2)-(8) supplies materially parallel protections. Chapter 436 took effect 30 days after it was signed on October 16, 2025 and applies only to leases, rental agreements, and renewals entered on or after that effective date.

B. Trust Obligations — GOL § 7-103

Under GOL § 7-103(1), a security deposit remains the tenant's money, must be held in trust, and may not be mingled with the recipient's personal funds or treated as the recipient's asset.

C. Interest-Bearing Account Requirement — GOL § 7-103(2-a)

For property containing six (6) or more family dwelling units, the landlord must:

• Deposit and hold the security deposit in an interest-bearing account in a New York banking institution (not merely any financial institution). GOL § 7-103(2-a).
• When money is deposited in a banking organization, notify the tenant in writing of the bank's name and address and the amount deposited. GOL § 7-103(2).
• The landlord may retain an administrative amount equal to 1% per year of the security money; the remaining bank interest belongs to the tenant and must be held in trust or paid annually. GOL § 7-103(2).
• At lease termination, pay the interest then collectible if the bank does not ordinarily pay interest at that time. GOL § 7-103(2-b).

D. Permissible Deductions

A landlord using Track A or Track B may retain only reasonable, itemized costs for:

1. Nonpayment of rent;
2. Damage caused by the tenant beyond normal wear and tear;
3. Nonpayment of utility charges payable directly to the landlord under the lease or tenancy; and
4. Moving and storage of the tenant's belongings.

GOL § 7-108(1-a)(b); amended GOL § 7-107(3).

E. Prohibited Deductions

Under both tracks, the landlord may not retain money for ordinary wear and tear or damage caused by a prior tenant. The landlord also may not retain money for a condition recorded in the parties' initial inspection agreement. GOL § 7-108(1-a)(b)-(c); amended GOL § 7-107(3)-(4).

F. Inspection and Cure Rights

After receiving notice that either party intends to terminate the tenancy, the landlord must notify the tenant in writing of the right to request a pre-vacate inspection and to be present, unless the tenant gave less than two weeks' notice. If requested, the inspection must occur no earlier than two weeks and no later than one week before the tenancy ends, on at least 48 hours' written notice. The landlord must then identify proposed repair or cleaning deductions, and the tenant may cure before the tenancy ends. GOL § 7-108(1-a)(d); amended GOL § 7-107(5).

G. Return, Itemization, and Remedies

Within 14 days after the tenant vacates, the landlord must provide an itemized statement of any amount retained and return the remaining deposit. Missing both the statement and deposit deadline forfeits the right to retain any portion. In a dispute over the amount retained, the landlord bears the burden of proving reasonableness. A violation permits actual damages; a willful violation permits punitive damages up to twice the deposit or advance. GOL § 7-108(1-a)(e)-(g); amended GOL § 7-107(6)-(8).

II. FACTUAL BACKGROUND

A. Tenancy Information

B. Move-Out Circumstances

Notice Provided by Tenant:

• Date Notice Given to Landlord: [__/__/____]
• Notice Period: [________________________________] days
• Method of Notice: ☐ Hand-delivered ☐ Certified mail ☐ Email ☐ Text ☐ Other: [____]

Delivery of Possession:

• Date Keys Returned / Surrendered: [__/__/____]
• Method of Key Return: ☐ In person ☐ Drop box ☐ Certified mail ☐ Other: [____]
• Forwarding Address Provided: ☐ Yes — Date: [__/__/____] ☐ No

Pre-Vacate Inspection:

• Written Notice of Inspection Right Provided: ☐ Yes ☐ No ☐ Tenant gave less than two weeks' notice
• Pre-Move-Out Inspection Conducted: ☐ Yes — Date: [__/__/____] ☐ No ☐ Refused by landlord
• At Least 48 Hours' Written Notice Provided: ☐ Yes ☐ No
• Written Proposed-Deduction Statement Provided: ☐ Yes ☐ No
• Opportunity to Cure Before Tenancy End: ☐ Yes ☐ No

C. Condition of Premises at Move-Out

☐ Clean and undamaged — The premises were left in substantially the same condition as received, reasonable wear and tear excepted, as documented by photographs dated [__/__/____].

☐ Professionally cleaned — Tenant hired [________________________________] to professionally clean the premises on [__/__/____]. Receipt enclosed.

☐ All personal property removed — All belongings were removed prior to key surrender.

☐ No damage beyond normal wear and tear — Any changes to the premises resulted from ordinary, expected use during the tenancy.

☐ Photographic documentation — Tenant has timestamped photographs taken at both move-in ([__/__/____]) and move-out ([__/__/____]).

III. LANDLORD'S VIOLATIONS

The following violations have occurred. Check all that apply:

☐ Failure to Return Deposit Within 14 Days [GOL § 7-108(1-a)(e) / § 7-107(6)]:
As of the date of this letter, [____] days have elapsed since Tenant vacated on [__/__/____]. The 14-day statutory deadline expired on [__/__/____]. You have failed to return any portion of the $[________________________________] deposit.

☐ Failure to Provide Written Itemized Statement [GOL § 7-108(1-a)(e) / § 7-107(6)]:
You failed to provide both the written itemized statement and the deposit balance within the 14-day period. The applicable section therefore forfeits your right to retain any portion of the deposit.

☐ Deficient or Unsupported Itemized Statement:
You purported to provide an itemization on [__/__/____], but it is legally inadequate because:

• ☐ Deductions are for normal wear and tear
• ☐ Deductions are for damage caused by a prior tenant
• ☐ Deductions are for conditions recorded in the initial inspection agreement
• ☐ Deductions are not among the categories permitted by the applicable section
• ☐ The amount retained is unreasonable
• ☐ Other deficiency: [________________________________]

☐ Excess Security Deposit [GOL § 7-108(1-a)(a) / § 7-107(2)]:
You collected a deposit or advance of $[________________________________], which exceeds one month's rent of $[________________________________] by $[________________________________].

☐ Failure to Hold Deposit in Trust / Commingling [GOL § 7-103(1)]:
Evidence indicates the deposit was commingled with your personal or operating funds, contrary to GOL § 7-103(1).

☐ Failure to Deposit in Interest-Bearing Account [GOL § 7-103(2-a)]:
The building contains [____] residential units (6 or more). You failed to deposit the security funds in an interest-bearing account at a New York banking organization, as required by GOL § 7-103(2-a).

☐ Failure to Notify Tenant of Banking Information [GOL § 7-103(2)]:
After depositing the security money with a banking organization, you failed to provide written notice of the bank's name and address and the amount deposited.

☐ Failure to Pay Accrued Interest [GOL § 7-103(2-a)]:
You have failed to account for and remit the tenant's share of accrued interest after the administrative amount permitted by GOL § 7-103(2).

☐ Failure to Provide Pre-Vacate Inspection Rights [GOL § 7-108(1-a)(d) / § 7-107(5)]:
Although Tenant did not terminate the tenancy on less than two weeks' notice, you failed to provide the required written notice of the right to request and attend an inspection, or failed to provide the required timing, notice, proposed-deduction statement, or opportunity to cure.

☐ Willful Violation [GOL § 7-108(1-a)(g) / § 7-107(8)]:
The violation was willful because: [________________________________]. Tenant reserves a claim for punitive damages up to twice the deposit or advance.

IV. DEDUCTION ANALYSIS

For every amount retained, identify the statutory category and supporting facts:

The landlord may not retain money for ordinary wear and tear, damage caused by a prior tenant, or a condition recorded in the initial inspection agreement.

V. DAMAGES AND REMEDIES

A. Security Deposit and Interest Calculation

B. Damages Under the Applicable Section

GOL § 7-108(1-a)(g) and amended GOL § 7-107(8) provide actual damages for a violation and punitive damages up to twice the deposit or advance for a willful violation.

C. Total Demand

VI. EVIDENCE IN OUR POSSESSION

Our Client has preserved the following:

☐ Original lease agreement (with all riders)
☐ Receipt or cancelled check for security deposit payment
☐ Written notice of banking institution and amount deposited (or lack thereof)
☐ Move-in inspection report / condition checklist
☐ Timestamped photographs of premises at move-in
☐ Timestamped photographs of premises at move-out
☐ Video walkthrough at move-out
☐ Copy of written notice to vacate with proof of delivery
☐ Keys return receipt or acknowledgment
☐ Written forwarding address notice to landlord
☐ Pre-vacate inspection notice, report, and cure documentation
☐ Receipts for professional cleaning
☐ Landlord's itemized statement (if provided) and analysis of deficiencies
☐ Correspondence with landlord regarding deposit
☐ Annual interest statements or banking records (if any provided)
☐ Rent-stabilization records and the operative lease or renewal (if Track B)
☐ Witness statements regarding condition of premises
☐ Other: [________________________________]

VII. FORMAL DEMAND

We hereby demand that you take the following actions within [NUMBER] days of the date of this letter:

1. Return the security deposit in full — $[________________________________], plus accrued interest of $[________________________________].

2. Pay proven additional actual damages — $[________________________________].

3. Acknowledge that Tenant reserves the applicable statutory claim for punitive damages if the violation was willful.

4. TOTAL PAYMENT DUE: $[________________________________]

Payment must be made by certified check or money order, payable to [TENANT FULL NAME], and delivered to:

[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]

Reference: [TENANT FULL NAME] / [PROPERTY ADDRESS] — Security Deposit

VIII. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this demand within the stated period, we are authorized and prepared to:

1. File suit in a New York court with subject-matter and territorial jurisdiction, after confirming the current monetary limit and filing rules for the selected forum.

2. Seek forfeiture of all retention rights under GOL § 7-108(1-a)(e) or amended GOL § 7-107(6), if the applicable 14-day statement-and-return requirement was not met.

3. Seek actual damages and, for a willful violation, punitive damages up to twice the deposit or advance under GOL § 7-108(1-a)(g) or amended GOL § 7-107(8).

IX. RESERVATION OF RIGHTS

This letter is sent without prejudice to any and all rights and remedies available to our Client under New York state law, federal law, the lease agreement, and common law, all of which are expressly reserved. Nothing herein constitutes a waiver of any claim or right.

Respectfully submitted,

[LAW FIRM NAME]

By: _________________________________
[ATTORNEY NAME]
New York Attorney Registration No. [________________________________]
[ADDRESS]
[CITY, NEW YORK ZIP]
[TELEPHONE]
[FAX]
[EMAIL]

Attorneys for [TENANT FULL NAME]

ENCLOSURES:
☐ Copy of lease agreement (with all riders)
☐ Copy of security deposit receipt / cancelled check
☐ Move-in / move-out photographs (USB drive or printed)
☐ Copy of written notice to vacate with proof of delivery
☐ Written forwarding address notice
☐ Pre-vacate inspection notice and proposed-deduction statement
☐ Copy of landlord's itemization (if provided), with Tenant's rebuttal
☐ Cleaning receipts / contractor estimates
☐ Interest calculation worksheet
☐ Authorization to represent (client file)

cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]

NEW YORK SECURITY DEPOSIT QUICK REFERENCE

NEW YORK PRACTICE NOTES FOR ATTORNEYS

☐ Confirm Scope First: Do not use the 14-day demand unless Track A or Track B applies. Chapter 436 does not retroactively cover every rent-stabilized lease.

☐ Deadline Elements: The forfeiture language applies when the landlord fails to provide the tenant with the statement and deposit within 14 days. Plead the dates and what was or was not delivered.

☐ Separate Inspection Duties: Analyze the initial inspection agreement and the pre-vacate inspection-and-cure process separately.

☐ Bank Notice: GOL § 7-103(2) requires notice when the recipient deposits the money; it does not state the former template's 30-day notice deadline.

☐ Interest Calculation: For property containing six or more family dwelling units, identify the actual bank interest and subtract only the statutory administrative amount equal to 1% per year of the security money.

☐ Attorney's Fees and Forum: The verified deposit statutes do not themselves award attorney's fees or select a forum. Verify any independent fee basis, jurisdictional limit, and filing procedure before adding those demands.

SOURCES AND REFERENCES

• NY General Obligations Law § 7-103: https://www.nysenate.gov/legislation/laws/GOB/7-103
• NY General Obligations Law § 7-107: https://www.nysenate.gov/legislation/laws/GOB/7-107
• NY General Obligations Law § 7-108: https://www.nysenate.gov/legislation/laws/GOB/7-108
• 2025 N.Y. Laws ch. 436 / S.952-B: https://www.nysenate.gov/legislation/bills/2025/S952/amendment/B

This template is for informational purposes only and does not constitute legal advice. Applicability turns on the dwelling's regulatory status and, for amended GOL § 7-107, the lease or renewal date. Consult a licensed New York attorney before use.