Security Deposits in New York: The Rules Every Landlord and Tenant Should Know

New York’s 2019 rent laws made security deposit rules among the strictest in the country. Whether you own rentals or live in one, here’s what the law requires.

The basics

• Deposits are capped at one month’s rent — no "last month’s rent plus deposit" stacking
• The deposit remains the tenant’s money, held in trust by the landlord
• For buildings with six or more units, it must be held in a New York interest-bearing account, with interest belonging to the tenant

Move-in and move-out inspections

Tenants have the right to request a walk-through inspection before moving in, documenting existing conditions. Before the lease ends, the landlord must offer an inspection so the tenant has a chance to fix issues that could cost them part of the deposit.

The 14-day rule

After the tenant vacates, the landlord has 14 days to return the deposit. If any amount is withheld, the landlord must provide an itemized statement of the deductions. Miss the 14-day deadline and the landlord can forfeit the right to keep any portion of it — even with legitimate damage.

What can be deducted

• Unpaid rent
• Damage beyond normal wear and tear
• Costs of storing or moving the tenant’s belongings

Ordinary wear — small nail holes, faded paint, worn carpet in traffic areas — cannot be charged to the tenant.

Why professional handling matters

Deposit disputes are the most common landlord-tenant conflict. Clean documentation — photos at move-in and move-out, written inspections, itemized statements delivered on time — prevents most of them. That’s a standard part of how we manage every unit at Blueoaks.