Security deposits are one of the biggest upfront costs when renting in NYC—and one of the most common sources of disputes with landlords. Thanks to the Housing Stability and Tenant Protection Act of 2019, tenants have stronger protections than ever. Here's everything you need to know.
(since 2019)
after move-out
interest-bearing account
Maximum Security Deposit
Under New York law, landlords cannot charge more than one month's rent as a security deposit. This applies to all residential rentals in NYC, regardless of:
- Your credit score
- Whether you have a guarantor
- The rent amount
- Whether the apartment is rent-stabilized or market-rate
Before 2019
Landlords could charge 2+ months security, "last month's rent," or other upfront fees. The 2019 law eliminated these practices.
Where Your Deposit Must Be Held
Your landlord is required by law to:
- Keep it in a New York bank — Not out of state, not in personal accounts
- Hold it in an interest-bearing account — You're entitled to the interest (minus 1% admin fee)
- Keep it separate from their own money — It's your money, held in trust
- Tell you the bank name and address — Upon request
What Can Be Deducted?
Landlords can only deduct for actual damages beyond normal wear and tear. Here's the difference:
Normal Wear & Tear (NOT deductible)
- • Faded paint from sunlight
- • Minor scuffs on walls
- • Worn carpet in high-traffic areas
- • Small nail holes from hanging pictures
- • Loose door handles from normal use
- • Minor marks on wood floors
- • Dusty blinds or screens
Actual Damage (CAN be deducted)
- • Holes in walls (beyond nail holes)
- • Broken windows or doors
- • Stained or burned carpet
- • Damaged appliances
- • Pet damage
- • Unreturned keys
- • Unpaid rent
Important
Landlords cannot deduct for pre-existing damage or normal cleaning. If you document the apartment's condition at move-in, you can prove what was already there.
Getting Your Deposit Back
When you move out, your landlord must return your security deposit within 14 days. Here's the process:
The 14-Day Rule
Document the apartment's condition with photos/video
Email or certified mail. Keep proof you sent it.
Must return deposit OR provide itemized list of deductions
If landlord misses deadline, they may forfeit right to deduct
What If Your Landlord Won't Return It?
If your landlord doesn't return your deposit within 14 days (or keeps it without valid reasons), you have options:
- Send a demand letter — Certified mail, requesting return within 7-10 days. Mention you'll take legal action if ignored.
- File in Small Claims Court — For deposits up to $10,000. Filing fee is around $20-$30. No lawyer needed.
- Report to the Attorney General — File a complaint at ag.ny.gov
Small Claims Court Tips
- • File in the county where the apartment is located
- • Bring all documentation (lease, photos, demand letter, receipts)
- • You can sue for the deposit plus court costs
- • Many judges side with tenants when landlords can't prove damage
- • Cases are usually heard within 1-2 months
How to Protect Your Deposit
At Move-In
- • Take photos and videos of every room
- • Note any existing damage (stains, holes, scratches)
- • Test all appliances and fixtures
- • Email photos to yourself (creates timestamp)
- • Request a move-in inspection with landlord
During Your Tenancy
- Report maintenance issues in writing (creates record)
- Keep copies of all communication with landlord
- Don't make alterations without written permission
- Fix small issues yourself if possible (and keep receipts)
At Move-Out
- • Clean the apartment thoroughly
- • Fill small nail holes (if required by lease)
- • Take photos/video of final condition
- • Return all keys
- • Provide forwarding address in writing
- • Request walk-through inspection with landlord
Common Landlord Violations
Watch out for these illegal practices:
Illegal Deposit Practices
- ✗Charging more than 1 month — Illegal since 2019
- ✗Requiring "last month's rent" — Also illegal
- ✗Deducting for normal wear — Can only deduct for actual damage
- ✗No itemized statement — Must explain all deductions
- ✗Keeping deposit without explanation — Forfeit after 14 days
- ✗Charging for professional cleaning — Unless stated in lease AND you left it dirty
Rent-Stabilized Apartments
The same rules apply to rent-stabilized apartments. Your landlord cannot charge more than one month's security, regardless of whether your apartment is stabilized.
Not sure if your apartment is rent-stabilized? Learn how to check →