New York security deposit law

Within 14 days after you move out, your landlord must give you an itemized statement explaining anything they kept and return the rest. A landlord who doesn't forfeits any right to keep any portion of the deposit (Gen. Oblig. Law § 7-108(1-a)(e)).

In a dispute over what was kept, the landlord has the burden of proving the amount was reasonable (§ 7-108(1-a)(f)). And any lease clause that waives these rights is void (§ 7-108(3)).

New York limits deductions to reasonable, itemized costs for four things (§ 7-108(1-a)(b)):

• Unpaid rent
• Damage you caused beyond normal wear and tear
• Utility charges you owe the landlord under the lease
• Moving and storing belongings you left behind

The landlord can't keep anything for ordinary wear and tear or for damage caused by a previous tenant.

After you sign the lease and before you move in, the landlord must offer you an inspection. If you take it, you both sign a written agreement noting existing defects, and the landlord can't later deduct for anything listed (§ 7-108(1-a)(c)).

When either of you gives notice to end the tenancy, the landlord must tell you in writing that you can request an inspection before you leave and be there for it, unless you gave less than two weeks' notice. The inspection happens between two weeks and one week before the end of the tenancy, with at least 48 hours' written notice. Afterward, the landlord gives you an itemized list of proposed deductions and you can fix those items before you leave (§ 7-108(1-a)(d)).

A deposit can't exceed one month's rent (§ 7-108(1-a)(a)), with narrow exceptions for registered seasonal rentals and owner-occupied co-ops.

Your deposit stays your money, held in trust and not mixed with the landlord's own (§ 7-103(1)). If it's put in a bank, it must be a bank in New York and the landlord must tell you in writing the bank's name and address and the amount. In buildings with six or more units it must earn interest, and the landlord may keep 1% a year for administration; the rest of the interest is yours (§ 7-103(2), (2-a)).

If the old owner didn't turn your deposit over, the new owner can still be liable for it, plus interest, when they knew about it, for example because it's in your lease or was in a New York bank account in the six months before the sale (§ 7-108(2)).

A landlord who breaks these rules is liable for your actual damages. If a court finds the violation was willful, it can add punitive damages of up to twice the deposit (§ 7-108(1-a)(g)).

Rent-stabilized apartments follow a parallel section, § 7-107, with the same one-month cap, the same four deductions, the same inspections and the same 14-day deadline. Rent-controlled apartments and certain senior and care housing are excluded from these rules.