New York: Security Deposit Return Deadlines & Deductions
The short answer
For most New York rentals, a landlord must give you an itemized statement and return the rest of your deposit within 14 days after you move out — miss that deadline and the landlord forfeits the right to keep any of it. New York caps most deposits at one month's rent, and a landlord must keep the money in trust, separate from their own funds. Buildings with six or more units must also pay interest. A landlord can deduct unpaid rent, damage beyond normal wear and tear, unpaid utilities billed directly to them, and moving/storage costs — but never for ordinary wear and tear or damage a prior tenant caused. A landlord who willfully violates these rules owes punitive damages of up to twice the deposit.
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This is the general rule in New York. Ezel applies current New York law to your specific facts and answers with citations to the statutes.
| Governing law | N.Y. Gen. Oblig. Law §§ 7-103, 7-108 |
|---|---|
| Deadline to return the deposit | 14 days after the tenant vacates the premises |
| Itemized statement required? | Yes — a written itemized statement of the basis for any amount retained, due within the same 14 days; missing it forfeits the landlord's right to keep any of the deposit |
| What can be deducted | Unpaid rent, damage caused by the tenant beyond normal wear and tear, unpaid utility charges payable directly to the landlord, and moving/storage of the tenant's belongings. Ordinary wear and tear and damage caused by a PRIOR tenant may never be deducted. |
| Maximum deposit amount | 1 month's rent for most units (exceptions for seasonal-use dwellings and owner-occupied cooperative apartments) |
| Interest on the deposit? | Required only for buildings with 6 or more residential units, at the prevailing rate paid on such deposits in the area; the landlord may keep 1%/year as an administration fee |
| Penalty for a late/bad-faith withholding | Actual damages for any violation; a WILLFUL violation adds punitive damages of up to 2x the deposit. Missing the 14-day statement/return deadline is a separate, automatic forfeiture of the right to retain any amount. The landlord bears the burden of proving any retained amount was reasonable. |
| Separate account or bond required? | Yes — the deposit is held in trust and may not be commingled with the landlord's own funds; a 6+ unit building must additionally use an interest-bearing account |
Compare this rule across all 50 states + DC →
Requirements one by one
Governing law
New York's security deposit rules for ordinary (non-rent-stabilized)
residential tenancies live in the General Obligations Law, primarily
§ 7-108, with the trust/interest rules in the neighboring § 7-103.
Deadline to return the deposit
The deadline is 14 days after you vacate: "Within fourteen days after the
tenant has vacated the premises, the landlord shall provide the tenant with
an itemized statement indicating the basis for the amount of the deposit
retained, if any, and shall return any remaining portion of the deposit to
the tenant." Missing it isn't just a technical violation — it wipes out the
landlord's claim entirely: "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." (§ 7-108(1-a)(e)).
Itemized statement required?
Yes, on the same 14-day clock described above — there's no separate
timeline or dollar-amount exception for itemization the way some other
states have.
What can be deducted
The statute names four categories: "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 terms of the lease or tenancy,
and moving and storage of the tenant's belongings." It's equally explicit
about what's off-limits: "The landlord may not retain any amount of the
deposit for costs relating to ordinary wear and tear of occupancy or damage
caused by a prior tenant." (§ 7-108(1-a)(b)) — that last clause is a
protection against being charged for a previous tenant's mess, not just your
own.
Maximum deposit amount
One month's rent for most units. The statute carves out two exceptions:
seasonal-use dwelling units meeting a specific registration and lease-term
test, and owner-occupied cooperative apartments.
Interest on the deposit?
Only required for a building with six or more residential units, where the
deposit must sit in "an interest bearing account... which account shall
earn interest at a rate which shall be the prevailing rate earned by other
such deposits made with banking organizations in such area." The person
holding the deposit may keep 1% per year as an administration fee, with the
rest belonging to the tenant.
Penalty for a late/bad-faith withholding
Two distinct consequences apply. First, missing the 14-day itemized-
statement-and-return deadline is an automatic forfeiture of the landlord's
right to keep anything, regardless of whether the landlord acted in bad
faith. Second, separately, "[a]ny person who violates the provisions of
this subdivision shall be liable for actual damages, provided a person
found to have willfully violated this subdivision shall be liable for
punitive damages of up to twice the amount of the deposit or advance."
(§ 7-108(1-a)(g)). In any dispute, the landlord — not the tenant — has the
burden of proving a retained amount was reasonable (§ 7-108(1-a)(f)).
Separate account or bond required?
Yes. The deposit is held in trust and "shall not be mingled with the
personal moneys" of the landlord (§ 7-103(1)). For a building with six or
more units, that trust account must also be interest-bearing.
What trips people up
14 days is short — track it from the day you actually vacate, not from
your official lease-end date. If you move out early or stay past the
lease term, the clock runs from when you actually leave, and missing it by
even a day forfeits the landlord's entire claim.
"Damage caused by a prior tenant" is its own named exclusion, not just
generic wear and tear. If a new landlord or building manager tries to
charge you for something a previous occupant broke, that's explicitly
barred, separate from the ordinary wear-and-tear rule.
The interest requirement only kicks in at 6+ units. A landlord renting
out a small building or a single unit isn't required to pay you interest at
all under state law — don't assume every New York deposit earns interest.
Common questions
My landlord returned my deposit but never itemized anything — is that a
problem? The statute requires the itemized statement whenever any amount
is retained; if the landlord retained nothing, there may be no dispute, but
a full return without any statement of "basis" for withheld amounts (if any
were withheld) can still be challenged.
Can my landlord charge me for a stain the last tenant left? No — the
statute specifically bars retaining any amount "for costs relating to...
damage caused by a prior tenant."
What happens if my landlord's violation was willful, not just late? You
can seek punitive damages up to twice the deposit on top of your actual
damages, and the landlord bears the burden of proving any retained amount
was reasonable.
Statutes and sources
- N.Y. Gen. Oblig. Law § 7-108(1-a)(e) — 14-day itemized-statement-and-return deadline and forfeiture.
https://www.nysenate.gov/legislation/laws/GOB/7-108 (accessed 2026-07-06) - N.Y. Gen. Oblig. Law § 7-108(1-a)(b) — permitted deductions and the wear-and-tear/prior-tenant bar.
https://www.nysenate.gov/legislation/laws/GOB/7-108 (accessed 2026-07-06) - N.Y. Gen. Oblig. Law § 7-108(1-a)(a) — 1-month deposit cap and exceptions.
https://www.nysenate.gov/legislation/laws/GOB/7-108 (accessed 2026-07-06) - N.Y. Gen. Oblig. Law § 7-103(2-a) — interest-bearing account requirement for 6+ unit buildings.
https://www.nysenate.gov/legislation/laws/GOB/7-103 (accessed 2026-07-06) - N.Y. Gen. Oblig. Law § 7-103(2) — 1%/year administration-fee allowance.
https://www.nysenate.gov/legislation/laws/GOB/7-103 (accessed 2026-07-06) - N.Y. Gen. Oblig. Law § 7-108(1-a)(f)-(g) — burden of proof and punitive-damages penalty.
https://www.nysenate.gov/legislation/laws/GOB/7-108 (accessed 2026-07-06) - N.Y. Gen. Oblig. Law § 7-103(1) — trust/no-commingling requirement.
https://www.nysenate.gov/legislation/laws/GOB/7-103 (accessed 2026-07-06)
Source links
Every statute quoted above, linked, with the date we checked it.
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