NYC Security Deposit Rules: Limits and Getting It Back

The One-Month Cap

A security deposit is money the landlord holds in case you leave owing rent or cause damage beyond normal wear. Since 2019, state law says the deposit or advance may not be more than one month’s rent.

The Attorney General’s guide puts it plainly: a landlord cannot ask for last month’s rent and a security deposit. If the rent is $2,920, which is StreetEasy’s median asking rent, October 2026, for a Queens one-bedroom, the most you can be asked for at signing is $2,920 for the first month and $2,920 as a deposit, $5,840 in total.

The statute has narrow exceptions, including seasonal rentals and owner-occupied co-op apartments.

Where the Deposit Is Kept

The deposit stays your money. In a building with six or more apartments, the landlord must keep deposits in a New York bank account that earns interest. The landlord may keep 1% of the deposit a year for administration, and the rest of the interest belongs to you.

If the building is sold, the landlord must pass the deposits to the new owner within five days, or return them to the tenants.

Protect It on the Day You Move In

1. Ask for the move-in inspection. The law says the landlord must offer one before you take occupancy.
2. Walk through together and write down every mark, stain, crack and broken fixture. Both of you sign the list.
3. Take dated photos and video of every room and email them to yourself and the landlord.
4. Keep the list. The landlord cannot later deduct for a condition that was written on it.

The Inspection Before You Move Out

Once either side gives notice that the tenancy is ending, the landlord must tell you in writing that you can ask for an inspection. If you ask, it happens between two weeks and one week before your last day, with at least 48 hours’ written notice of the time, and you have the right to be present.

Afterwards the landlord gives you an itemized list of what it says needs fixing or cleaning. You then have the chance to fix those things before you leave, which is the point of asking.

Getting It Back: 14 Days

Within 14 days after you move out, the landlord must return the deposit along with an itemized statement of the reason for any amount kept. Deductions are generally limited to unpaid rent, damage beyond ordinary wear and tear, unpaid utility charges owed to the landlord under the lease, and the cost of moving or storing things you left.

If the landlord does not send the statement and the money within 14 days, it loses the right to keep any part of the deposit.

The Attorney General’s guide describes the 14-day rule for apartments that are not rent-regulated. If you are rent-stabilized, the one-month cap still applies; check the return rules with the state housing agency.

Give the landlord a forwarding address in writing and return every key. Keep proof of both.

If the Landlord Keeps It Unfairly

1. Write to the landlord with your move-out date, the 14-day deadline and the amount owed. Keep a copy.
2. File a complaint with the Attorney General’s office, which has a form for security deposit disputes.
3. Sue in small claims court. A landlord who breaks the law on purpose can owe up to twice the deposit on top of the deposit itself.

Sublets and Deposits

If you sublet a room from a tenant, any deposit you pay is held by that person, not the building’s landlord. Put the amount, what it covers and the return date in your written sublet agreement, and do the same photo walk-through on day one.

• How to Sublet in NYC
• What to Put in a Sublease Agreement