What are the security deposit rules in New York?

Verified July 8, 2026 All New York topics →

Check your municipality. New York does not preempt local rent regulation — city or county ordinances may impose rent caps, notice rules, and fee limits that are stricter than the state-level rules on this page and are not covered here. Verify your municipality's ordinances before relying on any figure below.

What the state record says

New York has multiple rent-regulation regimes: rent control and rent stabilization (NYC Rent Stabilization Law and the Emergency Tenant Protection Act, administered by DHCR, with annual increases set by Rent Guidelines Boards), significantly strengthened by the 2019 HSTPA. Separately, the 2024 Good Cause Eviction law (RPL Article 6-A) applies in NYC and in localities that opt in: for covered units, a rent increase above the lesser of 5% plus CPI or 10% is presumptively unreasonable and can defeat an eviction for nonpayment of the increase.

Pending legislation — not yet law. The rules on this page reflect current law only. The following bill would change it if enacted:

S4856 (2025-2026 session) — Would amend GOL 7-108(1-a)(e) to extend the security-deposit return/itemized-statement deadline from 14 days to 30 days after the tenant vacates.Status: In Senate Judiciary Committee. Referred 2025-02-13; re-referred 2026-01-07 for the second year of the 2025-2026 session (routine). Assembly same-as: A2652. Not enacted as of the checked date. (checked 2026-07-08).

New York caps security deposits at one month's rent for non-rent-stabilized units, and the landlord must return the deposit with an itemized statement within 14 days of the tenant vacating — miss the deadline and the entire deposit must be returned.

Deposits are trust funds held in a separate New York bank account (interest-bearing in buildings of six or more units, with the landlord keeping at most a 1% administrative fee). Tenants have a statutory right to a move-in inspection and to a pre-move-out inspection with an opportunity to cure noted conditions before deductions are taken. Deductions are limited to unpaid rent, damage beyond normal wear and tear, unpaid lease utilities, and moving/storage; the landlord bears the burden of proving any retention is reasonable, and willful violations carry punitive damages up to twice the deposit. These 2019 HSTPA protections cannot be waived.

New York security deposits at a glance

Maximum deposit	1 month's rent — Applies to non-rent-stabilized dwelling units under GOL 7-108(1-a); exceptions exist for registered seasonal-use dwelling units and owner-occupied cooperative apartments, and separate rules apply to rent-stabilized units (GOL 7-107) and certain licensed senior/care facilities.
Return deadline	14 days
Deadline conditions	Within 14 days after the tenant has vacated, the landlord must provide an itemized statement indicating the basis for any amount retained and return the remaining deposit. The clock runs from vacatur; there is no forwarding-address precondition in the statute.
Itemization required	Yes
Itemization rules	The 14-day itemized statement must state the basis for each amount retained. Deductions are limited to non-payment of rent, damage beyond normal wear and tear, unpaid utility charges payable to the landlord under the lease, and moving/storage of the tenant's belongings; ordinary wear and tear and damage caused by a prior tenant may not be charged. In any dispute, the landlord bears the burden of proving the reasonableness of the amount retained (GOL 7-108(1-a)(f)).
Separate account required	Yes
Interest owed to tenant	Yes
Account & interest rules	Deposits are trust funds that may not be commingled (GOL 7-103(1)). If the deposit is placed in a bank, the landlord must notify the tenant in writing of the bank's name and address and the deposit amount, and the bank must be located in New York (GOL 7-103(2)). For buildings with six or more family dwelling units, the deposit must be placed in an interest-bearing account at the prevailing rate (GOL 7-103(2-a)). Whenever the deposit is in an interest-bearing account — mandatory at 6+ units, voluntary below — the landlord may retain 1% per annum of the deposited sum as an administrative fee in lieu of all other administrative and custodial expenses, with the balance of interest belonging to the tenant, held in trust or paid annually (GOL 7-103(2)).
Pet deposits	No separate statutory category; because no deposit or advance may exceed one month's rent in total, a pet deposit cannot be charged on top of a full one-month security deposit.
Non-refundable fees allowed	No
Penalty for violation	A landlord who fails to provide the itemized statement and deposit within 14 days forfeits any right to retain any portion of the deposit (GOL 7-108(1-a)(e)). Any violation of subdivision 1-a makes the landlord liable for actual damages, and a willful violation carries punitive damages of up to twice the amount of the deposit (GOL 7-108(1-a)(g)). Rights under the section are non-waivable (GOL 7-108(3)).
Tenant forwarding-address duty	Not addressed by statute

Notes and caveats

The one-month cap includes any 'advance' such as prepaid last month's rent — landlords cannot stack first month, last month, and a full deposit. Statutory exceptions: registered seasonal-use units (GOL 7-108(4)-(5)) and owner-occupied co-op purchases (7-108(6)). Rent-stabilized units are governed by GOL 7-107. Pending bill S4856 (14 to 30 days) is flagged above, not incorporated. tenant_forwarding_address_duty is null because GOL 7-108 imposes no such duty; the 14-day clock runs from vacatur regardless.

Statute citations

GOL 7-108 (1-a), (3) Official source
GOL 7-103 (1), (2), (2-a) Official source

How this record was verified: Direct read of statute text on the official NY Senate legislation site (nysenate.gov): GOL 7-108 (full text), GOL 7-103 (full text read 2026-07-08, session 3 — confirmed subdivision structure: (1) trust/no commingling, (2) bank notice + 1% admin fee when interest-bearing, (2-a) 6+ unit interest-bearing mandate, (3) waiver void), RPL 238-a and RPL 226-c (official-source text confirmed via nysenate.gov), cross-checked against the NY Attorney General's Residential Tenants' Rights Guide (ag.ny.gov) and NYC Rent Guidelines Board guidance.