May 2nd, 2026
New York has some of the strongest renter protections in the country when it comes to security deposits. The problem is that most tenants don't know about them until they're already in a dispute. If you rent in New York, here's what the law actually says and how to use it.
Since June 2019, New York law caps security deposits at one month's rent. No exceptions, no extra fees disguised as deposits. If your landlord asked for more than that, the excess is legally yours. This applies statewide, not just in New York City. The relevant statute is N.Y. General Obligations Law section 7-108.
After you move out, your landlord has exactly 14 calendar days to either return your full deposit or send you an itemized statement explaining what they kept and why. This is one of the shortest deadlines in the entire country. If they miss it, they forfeit the right to keep any of it, even if there were legitimate damages. The clock starts the day you vacate, so note that date.
Your landlord can't just say "the apartment needed cleaning" and keep $500. They have to provide a written, itemized list of every deduction with the specific cost and reason. Vague descriptions aren't enough. If they can't produce receipts or a clear breakdown, they don't have a valid claim.
This is where most disputes happen. New York law is clear: landlords can deduct for damage you caused beyond normal wear and tear, but not for the ordinary effects of living in a place. Faded paint after a few years, minor scuffs on hardwood floors, small nail holes from hanging pictures, worn carpet in high-traffic areas - that's all normal wear and tear. Your landlord can deduct for things like large holes in walls, broken fixtures, pet damage, or leaving the apartment in unsanitary condition.
They also cannot charge you for damage caused by a prior tenant. The law says this explicitly.
If you live in a building with six or more units, your landlord is required to hold your deposit in an interest-bearing account at a New York bank. The interest belongs to you, minus a small administrative fee the landlord can retain (up to 1% per year). Most tenants never see this interest because they don't know to ask for it.
This is the part of the law most renters don't know about. Under GOB 7-108, your landlord must offer you the opportunity to inspect the apartment together before you move in. If you request it, both parties sign a written agreement documenting the condition of the property. That agreement is then admissible as evidence in any deposit dispute.
If your landlord never offered you this inspection, that's a point in your favor. And if they did but you skipped it, you missed one of the strongest protections available to you.
When either you or your landlord gives notice to end the tenancy (with at least two weeks' notice), the landlord must inform you in writing of your right to request a move-out inspection. If you request one, the inspection has to happen between two weeks and one week before the end of your lease. The landlord must give you at least 48 hours' notice of the date and time.
After the inspection, the landlord has to give you an itemized list of any repairs or cleaning they plan to deduct from your deposit. Here's the key part: you then have the chance to fix those issues before you leave. If you cure them, the landlord can't deduct for them.
Start by checking whether the 14-day deadline has passed. If it has, your landlord has forfeited their right to keep any portion. Send a demand letter referencing GOB 7-108(1)(e) and the 14-day rule. If they still won't pay, file in small claims court. Filing fees are small, you don't need a lawyer, and New York courts handle these cases routinely.
The strongest thing you can bring to court is documentation. Your lease, your demand letter, any correspondence with your landlord, and photos showing the apartment's condition at move-in and move-out. The more organized your evidence, the faster the case resolves.
The best time to prevent a deposit dispute is move-in day, before you unpack a single box. Amavera guides you through documenting every room and generates a timestamped inspection report you can send to your landlord immediately. In a state where the return deadline is just 14 days and the landlord is required to offer you an inspection, showing up with professional documentation puts you in the strongest possible position.