New York Security Deposit Law: 14-Day Return and Inspection Rights

By Steve Levine · Updated November 3, 2026

Short answer: New York security deposit law caps most deposits at one month’s rent under General Obligations Law § 7-108(1-a)(a). Within fourteen days after you move out, the landlord must give you an itemized statement and return the rest, or forfeit any right to keep any of it, under § 7-108(1-a)(e). A landlord found to have willfully violated these rules owes your actual damages plus punitive damages of up to twice the deposit, under § 7-108(1-a)(g).

New York’s deposit statute is one of the most tenant-friendly in the country. Its signature feature is a two-step inspection process. You can ask for a walk-through before you move in and again before you move out, and the pre-move-out inspection gives you a chance to fix problems before the landlord can charge for them.

New York security deposit law: quick reference

Rule	New York	Statute
Deposit limit	One month’s rent, with narrow exceptions	GOL § 7-108(1-a)(a)
Return deadline	Fourteen days after you vacate	GOL § 7-108(1-a)(e)
Itemized statement	Required for any amount kept, within the same fourteen days	GOL § 7-108(1-a)(e)
Interest / separate account	Held in trust; buildings with 6+ units must use an interest-bearing New York bank account	GOL § 7-103
Penalty	Actual damages; up to 2x the deposit in punitive damages if willful	GOL § 7-108(1-a)(g)
Small claims limit	$10,000 in NYC; $5,000 in city courts; $3,000 in town and village courts	NYS Department of Labor small claims summary

Which apartments are covered

Under § 7-108(1-a), the one-month cap and the inspection and 14-day rules apply “except in dwelling units subject to the city rent and rehabilitation law or the emergency housing rent control law.” The state Attorney General’s Residential Tenants’ Rights Guide currently describes the 14-day return and inspection rules as applying to tenants in non-rent-regulated units. For regulated units, the guide says the landlord must return the deposit, less lawful deductions, at the end of the lease or within a reasonable time afterward.

The trust and interest rules in § 7-103 apply more broadly. If you’re unsure whether your unit is regulated, the AG guide points you to the state’s Office of Rent Administration.

The one-month cap

Section 7-108(1-a)(a) says “no deposit or advance shall exceed the amount of one month’s rent.” The only exceptions are seasonal-use units and owner-occupied cooperative apartments covered by later subdivisions of the section.

The cap counts every “deposit or advance,” so the AG guide explains that “a landlord cannot ask for last month’s rent and a security deposit.” A separate pet deposit on top of a full month’s deposit would also exceed the limit. If your rent goes up at renewal, the guide says the landlord may collect enough to bring the deposit up to the new monthly rent.

Trust account and interest

Under GOL § 7-103(1), a deposit “shall continue to be the money of the person making such deposit” and must be held in trust, not mixed with the landlord’s personal money. That applies regardless of building size.

In buildings with six or more family units, § 7-103(2-a) requires the money to be placed in an interest-bearing account at a banking organization in New York, earning the prevailing rate. You must be told in writing the bank’s name and address and the deposit amount. The landlord may keep 1% a year as an administrative fee, and the rest of the interest is yours, either paid annually, applied to rent, or held until the end of the lease. The AG guide gives a worked example: a $1,000 deposit at 1.5% earns $15, of which the landlord keeps $10 and you receive $5. It also says a smaller-building landlord who chooses an interest-bearing account must follow the same rules. Compare states on our deposit interest page.

Move-in and move-out inspections

Under § 7-108(1-a)(c), if you ask, the landlord must offer an inspection before you move in, and the two of you sign a written agreement describing the unit’s condition before you take occupancy. Any defect listed in that agreement cannot later be used to justify keeping your deposit.

Section 7-108(1-a)(d) handles the end of the tenancy. After either side gives notice of termination, the landlord must tell you in writing that you may request an inspection and be present. If you request it, the inspection happens no earlier than two weeks and no later than one week before your tenancy ends, with at least forty-eight hours’ written notice. The landlord then gives you an itemized statement of proposed deductions, and you have the chance to cure those conditions before you leave. Pair it with our move-out checklist.

What a New York landlord may keep

Section 7-108(1-a)(b) makes “the entire amount of the deposit” refundable when you vacate, except for “reasonable and itemized costs” due to four things:

non-payment of rent
“damage caused by the tenant beyond normal wear and tear”
non-payment of utility charges payable directly to the landlord under the lease
moving and storage of the tenant’s belongings

Ordinary wear and tear of occupancy cannot be charged. Under § 7-108(1-a)(f), in any dispute the landlord “shall bear the burden of proof as to the reasonableness of the amount retained.” See our wear and tear guide for the usual dividing line.

The fourteen-day deadline

Within fourteen days after you vacate, § 7-108(1-a)(e) requires the landlord to give you an itemized statement of any amount kept and return the balance. The forfeiture language is direct: “If a landlord fails to provide the tenant with the statement and deposit within fourteen days, the landlord shall forfeit any right to retain any portion of the deposit.” The AG guide puts it plainly: the landlord must then return the entire deposit “whether there is damage or not.”

The statute doesn’t specify a delivery method, so give your forwarding address in writing when you leave and keep proof that you did.

Penalties

Under § 7-108(1-a)(g), anyone who violates the subdivision “shall be liable for actual damages.” A landlord “found to have willfully violated this subdivision shall be liable for punitive damages of up to twice the amount of the deposit or advance.” Actual damages are usually the money wrongly kept; the punitive amount depends on a finding of willfulness.

Worked example

Nadia rents a non-regulated one-bedroom in Rochester for $1,400 a month with a $1,400 deposit. She requests a pre-move-out inspection; the landlord flags a dirty oven, which she cleans. She vacates on May 31 and emails her new address.

The landlord’s deadline is June 14. On June 25, it sends $900 and a note keeping $500 for “oven and paint.”
The statement came after fourteen days, so under § 7-108(1-a)(e) the landlord forfeited the right to keep any portion. Actual damages: $500.
If a court finds the violation willful, it may add punitive damages of up to twice the $1,400 deposit, or $2,800.
Her maximum claim is $3,300. Filed in a city court outside New York City, where the small claims limit is $5,000, it fits within small claims.

Small claims across New York

New York’s limit depends on where you file. According to the state Department of Labor’s small claims summary, you may sue for up to $10,000 in New York City, $5,000 in city courts outside NYC, and $3,000 in town or village courts. In Nassau and Suffolk counties you can generally sue for up to $5,000, with specific rules. The AG’s office also accepts rent security complaints and may be able to help recover a deposit. Our small claims guide walks through filing.

When the building is sold

Under GOL § 7-105, a landlord who sells or assigns must turn deposits over to the new owner at the deed delivery or within five days afterward, and notify you by registered or certified mail with the new owner’s name and address. The new owner then becomes responsible for returning your deposit. Failing to comply is a misdemeanor. The AG guide adds that buyers of rent-stabilized buildings are directly responsible for deposits whether or not they received them, and buyers of rent-controlled buildings, or buildings of six or more units with written leases, are responsible where they have “actual knowledge” of the deposits.

Frequently Asked Questions

Can a New York landlord charge last month’s rent plus a deposit?

Not if together they exceed one month’s rent. Section 7-108(1-a)(a) caps any “deposit or advance” at one month, and the AG guide says a landlord can’t ask for both.

What happens if my landlord misses the 14-day deadline?

The landlord forfeits any right to keep any part of the deposit under § 7-108(1-a)(e), and must return all of it even if there was real damage.

Do I earn interest on my deposit in a small Brooklyn walk-up?

Only if the building has six or more units, or the landlord chose an interest-bearing account anyway. Either way, the money must be held in trust under § 7-103(1).

Who proves the deductions were fair?

The landlord. Section 7-108(1-a)(f) puts the burden of proof on the landlord as to the reasonableness of any amount kept.

Do these rules cover rent-stabilized apartments?

The AG guide says the 14-day and inspection rules currently apply to non-regulated units, while regulated tenants get their deposit back at the end of the lease or within a reasonable time. Trust-account rules apply to both.

This explanation is not legal advice. The LSC legal aid finder lists free civil legal services across New York. If you live across the river, compare New Jersey’s deposit rules. If you’ve given notice to move, ask your landlord in writing today for the pre-move-out inspection under § 7-108(1-a)(d).

Sources

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