Overview
New York has some of the strongest security deposit protections in the country, significantly bolstered by the Housing Stability and Tenant Protection Act (HSTPA) of 2019. The law caps deposits at one month's rent and imposes strict requirements on landlords for handling and returning deposits.
This guide covers everything landlords and tenants need to know about security deposits in New York.
Deposit Limits
Under the HSTPA of 2019, New York law sets the following limits:
- All landlords: Maximum of 1 month's rent as a security deposit
- No additional fees: Landlords may not collect last month's rent, pet deposits, or any other upfront fees beyond the first month's rent and one month's security deposit
Before the HSTPA
Prior to June 14, 2019, there was no statutory limit on security deposits in New York. Landlords could charge multiple months' rent as a deposit, which was common in New York City's competitive rental market.
cite: N.Y. Gen. Oblig. Law § 7-108
Allowable Deductions
Landlords may only deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Damage beyond normal wear and tear: Costs to repair tenant-caused damage that exceeds ordinary wear
- Reasonable cleaning costs: To restore the unit to its move-in condition if the tenant left the premises excessively dirty
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint due to sunlight
- Minor marks on hardwood floors
Damage beyond normal wear and tear includes:
- Large holes in walls
- Stained or burned carpet
- Broken windows or fixtures
- Unauthorized alterations to the unit
- Excessive filth requiring professional cleaning
Return Timeline
Landlords must return the security deposit within 14 days of the tenant vacating the unit. The return must include:
- The remaining deposit amount (if any deductions were made)
- An itemized written statement listing each deduction and the amount
- Receipts or documentation supporting any claimed deductions
If the landlord fails to return the deposit or provide the required documentation within 14 days, the tenant may be entitled to the full deposit amount regardless of any legitimate deductions. Courts may also award additional damages.
cite: N.Y. Gen. Oblig. Law § 7-108(e)
Pre-Move-Out Inspection
New York law does not require landlords to conduct a pre-move-out inspection. However, it is good practice for both parties to conduct a walkthrough before move-out to document the condition of the unit.
Landlords are encouraged to:
- Photograph or video the unit at move-in and move-out
- Provide the tenant with a written condition report at the start of the tenancy
- Allow the tenant to be present during the final inspection
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit
- File a claim in Small Claims Court (up to $5,000 in most courts; $10,000 in NYC)
- File a complaint with the New York State Attorney General's office or local housing agency
Under the HSTPA, courts have broad discretion to award the tenant the full deposit amount plus additional damages if the landlord acted in bad faith or failed to comply with the 14-day return requirement.