New York Security Deposit Laws 2026
Here's what New York law says about security deposit returns, deadlines, and penalties. All information is sourced from NY Gen. Oblig. Law § 7-108, § 7-103.
Return Deadline
14 calendar days
from move-out date to return your deposit
Penalty for Violations
Landlord forfeits ALL right to withhold + additional damages
If the landlord violates the deadline, they may forfeit ALL right to withhold any portion of your deposit.
Deposit Cap
Maximum security deposit: 1 month rent
Itemization Requirements
- Itemized statement required: Yes
- Itemization deadline: 14 days
- Receipts required: No
Interest Requirements
Interest on your deposit is required (rate varies).
Statute of Limitations
- Written lease: 6 years
- Oral lease: 6 years
Small Claims Court
Maximum claim: $10,000
Primary Statute
Important Exceptions & Edge Cases
NY GOL § 7-103(2-a): Buildings with 6+ residential units — landlord MUST place deposit in interest-bearing account at a NY bank. Must notify tenant of bank name/address. Must pay tenant annual interest minus up to 1% admin fee. Failure to comply strengthens tenant's claim.
NY GOL § 7-103: Buildings with fewer than 6 units — interest on deposit is NOT required unless landlord voluntarily places deposit in interest-bearing account. If they did, interest rules apply.
NY GOL § 7-107 (amended Nov 15, 2025): Rent-stabilized tenants receive additional protections including mandatory inspection rights upon notice of lease termination. Owner must return full deposit within 14 days with itemization. Same forfeiture rule applies.
NYC small claims court limit is $10,000. Nassau/Western Suffolk/City Courts (non-NYC): $5,000. Eastern Suffolk/Town/Village Courts: $3,000. Use the court in the county where the landlord resides or does business.
HSTPA 2019: For leases signed on or after Jul 14, 2019, landlord must offer tenant a pre-occupancy inspection to document existing conditions. Written agreement must be executed. This is critical evidence in deposit disputes — if landlord didn't offer inspection, it weakens their deduction claims.
Think your landlord violated New York law?
Generate a demand letter that cites NY Gen. Oblig. Law § 7-108, § 7-103 and puts your landlord on notice.
This is not legal advice. Reclaim provides legal information and document generation tools. The information on this page is sourced from NY Gen. Oblig. Law § 7-108, § 7-103 and is current as of July 14, 2019. For specific legal questions, consult a licensed attorney in New York.