New York Security Deposit Rules: The 14-Day Forfeiture Rule Your Landlord Hopes You Don't Know

The 14-day forfeiture rule — your biggest weapon

Under NY General Obligations Law § 7-108, your landlord has exactly 14 days after you move out to either return your full deposit or provide an itemized statement of deductions with the remaining balance.

Here's the part that makes New York unique: if they miss that 14-day window, they forfeit all right to retain any portion of your deposit. This isn't a penalty on top of the deposit — it's a complete forfeiture. The landlord loses the ability to make any deduction, even for legitimate damage. No other state goes this far.

See the full breakdown of New York's security deposit law →

The deposit cap: 1 month's rent, period

Since the Housing Stability and Tenant Protection Act of 2019 (HSTPA), New York landlords can charge a maximum of one month's rent as a security deposit. That's it. No stacking additional fees on top.

This means your landlord cannot charge:

• A pet deposit or pet fee on top of the security deposit
• Last month's rent in advance (on top of the deposit)
• A “move-in fee,” “administrative fee,” or any other charge that effectively increases the deposit above one month's rent

If your landlord collected more than one month's rent as a deposit, they've already violated the law — and you're owed the excess back immediately, plus you may have a stronger case for recovering everything.

Interest requirements for buildings with 6+ units

If you rented in a building with six or more units, your landlord was legally required to:

1. Hold your deposit in an interest-bearing account at a New York banking institution
2. Notify you of the bank name and address where the deposit was held
3. Pay you the accrued interest annually (minus a 1% administrative fee the landlord may retain)

If your landlord never told you where your deposit was held, never paid you interest, or never put it in an interest-bearing account at all — that's another violation. It's also another data point you can cite in your demand letter to show a pattern of noncompliance.

The itemized statement requirement

If your landlord wants to make any deduction from your deposit, they must provide you with an itemized statement within that 14-day window. This statement must describe each deduction specifically.

Vague descriptions don't cut it. A statement that says “damages — $800” or “cleaning — $400” without further detail is insufficient under New York law. Your landlord must explain what was damaged, where in the unit, and what the specific cost was for each item.

NYC-specific considerations

New York City tenants have the same state-level protections as everyone else in New York — but you also have some additional options and considerations.

• Small claims court limit: NYC small claims court allows claims up to $10,000, which covers the vast majority of security deposit disputes
• NYC Housing Court: An alternative venue for deposit disputes. Housing Court judges handle landlord-tenant cases all day and are very familiar with NY GOL § 7-108
• NYS Attorney General's Consumer Frauds Bureau: NYC tenants can file complaints directly with the AG's office for additional pressure (more on this below)

Guide to filing in New York small claims court →

The Attorney General complaint option

One tool that New York tenants often overlook: you can file a free complaint with the New York State Attorney General's office. This won't directly get your deposit back, but it creates an official government record of your landlord's violation — and puts real pressure on them to settle.

Here's how to do it:

1. Visit the NYS Attorney General's website (ag.ny.gov)
2. Navigate to the Consumer Frauds Bureau complaint form
3. File your complaint online — include your lease, proof of move-out, and any communication with your landlord about the deposit
4. Keep a copy of the confirmation number for your records

Mentioning in your demand letter that you've filed (or intend to file) an AG complaint adds another layer of credibility. Landlords who are flagged by the AG's office face potential investigation, and most would rather return your deposit than deal with that.

Common New York security deposit violations

If any of these sound familiar, your landlord has likely broken the law:

Calculate your recovery

New York's forfeiture rule makes calculating your recovery straightforward. Here's what you're owed depending on your landlord's violation:

• Missed 14-day deadline: Your entire deposit back, regardless of any damage. This is full forfeiture — no deductions allowed.
• Overcharged deposit (above 1 month's rent): The excess amount back immediately, plus potential leverage on the remainder
• No interest payment (6+ unit building): The accumulated interest owed to you over the course of your tenancy
• Vague or missing itemized statement: Grounds to challenge every deduction listed

Related guides

• New York Security Deposit Law — Full Breakdown →
• How to Write a Demand Letter to Your Landlord →
• Landlord Won't Return Your Security Deposit? Here's What to Do →
• How to Respond to Your Landlord's Itemized Deductions →
• Filing in New York Small Claims Court →