New York Security Deposit Return Deadline & Penalty Calculator
Tuesday, October 27, 2026
Computed as 14 calendar days under N.Y. Gen. Oblig. Law § 7-108(1-a).
New York Small Claims Court cap: $10,000 — eligible for Small Claims Court filing.
New York Security Deposit Rules at a Glance (N.Y. Gen. Oblig. Law § 7-108(1-a))
Strict 14 calendar days after the tenant has vacated the premises under N.Y. Gen. Oblig. Law § 7-108(1-a)(e). Within those 14 days, the landlord must provide BOTH an itemized statement indicating the basis for any amount retained AND return any remaining portion of the deposit.
| Deadline (No Deductions) | 14 calendar days |
|---|---|
| Deadline (With Itemized Deductions) | 14 calendar days |
| Maximum Deposit Cap | Strictly capped at 1 month's rent maximum for non-rent-stabilized and rent-stabilized residential units statewide under the Housing Stability and Tenant Protection Act (HSTPA). |
| Bad-Faith / Late Penalty | If a landlord fails to provide the itemized statement and return the balance within 14 days, the landlord forfeits any right to retain any portion of the deposit (§ 7-108(1-a)(e)). Furthermore, any person who willfully violates § 7-108 is liable for actual damages PLUS punitive damages of up to twice (2x) the amount of the deposit. |
| Deposit Interest Rule | Mandatory for rental buildings containing 6 or more family dwelling units under N.Y. Gen. Oblig. Law § 7-103(2-a): deposit must be held in an interest-bearing NY bank account earning prevailing interest (landlord keeps a 1% administrative fee and pays or credits the remainder annually). |
| Small Claims Court Limit | $10,000 |
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Key New York Statutory Nuances & Documentation Rules
- Hard 14-Day Forfeiture Cutoff: If the landlord mails the itemized deduction list on Day 15, New York statute states the landlord 'shall forfeit any right to retain any portion of the deposit'—even if real property damage occurred.
- Mandatory Pre-Move-Out Inspection Offer (§ 7-108(1-a)(d)): After either party gives notice to end the tenancy, the landlord must notify the tenant in writing of their right to request an inspection before vacating (held 1 to 2 weeks before move-out with 48 hours' notice) so the tenant can fix issues beforehand.
- Burden of Proof on Landlord: In any New York court action disputing deposit retention, the statute explicitly places the burden of proof on the landlord to justify the reasonableness of every dollar retained.
- No Prepaid Last Month's Rent Plus Deposit: Because total upfront security is capped at 1 month's rent, NY landlords cannot legally collect first month's rent + last month's rent + a security deposit at lease signing.
Brooklyn Apartment Move-Out Past the 14-Day Window
A tenant vacates a Brooklyn apartment on September 30, 2026 with a $3,100 security deposit. Under N.Y. Gen. Oblig. Law § 7-108(1-a)(e), the landlord must deliver an itemized deduction statement and refund the remaining balance within 14 calendar days—by Wednesday, October 14, 2026. If the landlord sends a deduction notice for $1,100 on October 20 (Day 20), they automatically forfeit the right to retain the $1,100. If a NYC Civil Court Small Claims judge (limit $10,000) finds the violation was willful under § 7-108(1-a)(g), the court may award the $1,100 withheld plus up to $6,200 (2x the $3,100 deposit) in punitive damages.
New York Security Deposit Return FAQs
How many days does a landlord in New York have to return a security deposit?
Exactly 14 calendar days. Under New York General Obligations Law § 7-108(1-a)(e), within 14 days after the tenant has vacated the premises, the landlord must provide an itemized statement explaining any deductions and return any remaining portion of the deposit.
What happens if a New York landlord misses the 14-day security deposit deadline?
If a landlord fails to provide the tenant with the itemized statement and refund within 14 days, the landlord forfeits any right to retain any portion of the deposit under GOL § 7-108(1-a)(e) and must return the entire security deposit.
Are New York landlords required to pay interest on security deposits?
If the rental property is in a building with 6 or more residential units, New York General Obligations Law § 7-103 requires the landlord to place the deposit in an interest-bearing NY bank account. The landlord may retain 1% per year for administrative expenses, and the remaining interest belongs to the tenant.
Can I sue for double my security deposit in New York Small Claims Court?
Yes. Under GOL § 7-108(1-a)(g), any landlord who willfully violates the security deposit statute is liable for the tenant's actual damages plus punitive damages of up to twice the amount of the security deposit. NYC Civil Court, District Courts, and City Courts handle small claims up to $10,000.