The cap is 1 month's rent for most residential tenancies. The return deadline is 14 days after the tenant vacates, with an itemized statement of deductions. Interest: Yes for buildings with six or more units — deposits must be held in interest-bearing accounts and interest paid to the tenant (less a 1% admin fee in many postures). That is what separates New York getting a security deposit back from a generic national summary. Read N.Y. Gen. Oblig. Law § 7-103; N.Y. Mult. Dwell. Law § 60 before the background sections below. Wrongful withholding can support recovery of the deposit plus interest and possible punitive exposure under deceptive-practices theories; landlords risk forfeiture of the right to retain deposits when escrow rules are violated.
When the deposit must be returned
14 days after the tenant vacates, with an itemized statement of deductions
Interest and accounting
Yes for buildings with six or more units — deposits must be held in interest-bearing accounts and interest paid to the tenant (less a 1% admin fee in many postures).
Penalties for wrongful withholding
Wrongful withholding can support recovery of the deposit plus interest and possible punitive exposure under deceptive-practices theories; landlords risk forfeiture of the right to retain deposits when escrow rules are violated.
A concrete New York scenario
Here is one way the New York pieces fit together. Change any fact and the statute may point somewhere else.
A residential tenant moves out of a New York rental and the landlord has not returned the deposit.
- Check the cap that applied when the deposit was collected: 1 month's rent for most residential tenancies.
- Calendar the return deadline: 14 days after the tenant vacates, with an itemized statement of deductions
- Interest, if any: Yes for buildings with six or more units — deposits must be held in interest-bearing accounts and interest paid to the tenant (less a 1% admin fee in many postures).
- If the landlord keeps money without the required accounting: Wrongful withholding can support recovery of the deposit plus interest and possible punitive exposure under deceptive-practices theories; landlords risk forfeiture of the right to retain deposits when escrow rules are violated.
New York generally limits deposits to one month’s rent. GOL § 7-103 requires interest-bearing escrow in larger buildings. Return with itemization is due within 14 days after vacatur. Housing Court / small claims handle many disputes.
Practical process for tenants and landlords
New York generally limits deposits to one month’s rent. GOL § 7-103 requires interest-bearing escrow in larger buildings. Return with itemization is due within 14 days after vacatur. Housing Court / small claims handle many disputes.
Document the unit with dated photos or video at move-in and move-out, keep the lease and any inspection checklist, and send a dated written demand if the deadline passes without a lawful accounting.
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Case law: security deposits in New York
Joseph P. Day Realty Corp. v. Jeffrey Lawrence Associates, Inc.
Joseph P. Day Realty Corp. v. Jeffrey Lawrence Associates, Inc., 270 A.D.2d 140 (2000)
…7, when it would vacate the premises, and (b) abandoned its security deposit. Tenant also alleged that its vice-president sent a letter confirming the agreement on June 27, 1997, just three days before it vacated the premises. *141Almost immediately after tenant vacated the premises, landlord commenced the instant action seeking $5,961.97, which represented the rent for July 19…
New York opinions such as Joseph P. Day Realty Corp. v. Jeffrey Lawrence Associates, Inc. are cited where security deposits is disputed. The court stated: "Tenant also alleged that its vice-president sent a letter confirming the agreement on June 27, 1997, just three days before it vacated the premises. *141Almost immediately after tenant vacated the premises, landlord commenced the instant action seeking $5,961." That is the language to brief; the rest of the decision supplies the procedural posture.
In the Matter of the State of New York by Louis J. Lefkowitz, Attorney-General of the State of New York, Appellant
…he *966 General Obligations Law contemplate that all tenant security deposits, for the enumerated class of dwellings, be deposited in interest-bearing accounts. There can be no doubt that the original bill was introduced as a result of Special Term's holding in Matter of State of New York v. Parkchester Apts. Co. (61 Misc 2d 1020, 1024, affd. 34 A D 2d 1106, affd. 28 N Y 2d 842…
In the Matter of the State of New York by Louis J. Lefkowitz, Attorney-General of the State of New York, Appellant is worth reading on New York security deposits because the court put the point in its own words: "General Obligations Law contemplate that all tenant security deposits, for the enumerated class of dwellings, be deposited in interest-bearing accounts." Use that passage as the starting point, then read the facts that precede it.
23 East 39th Street Management Corporation, Appellant-Respondent, v. 23 East 39th Street Developer, LLC
…January 2009; and denied plaintiffs request to set off its security deposit against unpaid rent and other charges, and an order, same court and Special Referee, entered February 3, 2015, which, inter alia, granted defendant’s motion for reargument to the extent of awarding prejudgment interest at the statutory rate commencing on August 31, 2007, unanimously reversed, on the la…
Practitioners open 23 East 39th Street Management Corporation, Appellant-Respondent, v. 23 East 39th Street Developer, LLC when New York security deposits turns on the distinction in this sentence: "January 2009; and denied plaintiffs request to set off its security deposit against unpaid rent and other charges, and an order, same court and Special Referee, entered February 3, 2015, which, inter alia, granted defendant’s motion for reargument to the extent of awarding prejud" Do not lift it out of the facts the court was deciding.
Harlem Capital Center, LLC, Appellant-Respondent, v. Rosen & Gordon, LLC, Et Al., Respondents-Appellants
…ersion claim as the bank statement showing that the alleged security deposit was held in equities and fixed income investments does not clearly demonstrate a violation of General Obligations Law § 7-103 (1) or that defendants commingled the deposit with personal funds. While defendants’ failure to respond to plaintiff’s notice, which alleged commingling and requested the name a…
New York opinions such as Harlem Capital Center, LLC, Appellant-Respondent, v. Rosen & Gordon, LLC, Et Al., Respondents-Appellants are cited where security deposits is disputed. The court stated: "General Obligations Law § 7-103 (1) or that defendants commingled the deposit with personal funds." That is the language to brief; the rest of the decision supplies the procedural posture.
Stuarco, Inc. v. Slafbro Realty Corporation
Stuarco, Inc. v. Slafbro Realty Corporation, 30 A.D.2d 80 (1968)
…r a tenant is entitled to the interest actually earned on a security deposit where the operative lease makes no provision for the payment of interest by the landlord on the security deposit. In 1950 the tenant, the plaintiff in this action, deposited $4,800 with its landlord, the defendant herein, pursuant to the terms of a 10-year written lease, to secure its performance there…
On security deposits, Stuarco, Inc. v. Slafbro Realty Corporation speaks to the New York dispute in this passage: "r a tenant is entitled to the interest actually earned on a security deposit where the operative lease makes no provision for the payment of interest by the landlord on the security deposit. In 1950 the tenant, the plaintiff in this action, deposited $4,800 with its landlord, the" The surrounding opinion shows how the court applied that language to the record.
Gerel Corp. v. Prime Eastside Holdings, LLC
Gerel Corp. v. Prime Eastside Holdings, LLC, 12 A.D.3d 86 (2004)
…der General Obligations Law § 7-105 to recover the tenants’ security deposits. On June 19, 2001, defendant Prime Eastside Holdings, LLC entered into 50-year net leases with plaintiffs Gerel Corp., Ruradan Corp. and Timston Corp. for three mixed-use properties located in Manhattan, known as 1100 Madison Avenue, 6-10 East 48th Street and 250 East 39th Street, respectively. Defend…
Practitioners open Gerel Corp. v. Prime Eastside Holdings, LLC when New York security deposits turns on the distinction in this sentence: "General Obligations Law § 7-105 to recover the tenants’ security deposits. On June 19, 2001, defendant Prime Eastside Holdings, LLC entered into 50-year net leases with plaintiffs Gerel Corp., Ruradan Corp. and Timston Corp." Do not lift it out of the facts the court was deciding.
In the Matter of the People of the State of New York, by Louis J. Lefkowitz, Attorney-General of the State of New
…ral lacks standing to maintain a proceeding to recover rent-security deposit interest for tenants (see Matter of State of New York v Parker, 30 NY2d 964). However, following our determination in that case, the Legislature enacted section 7-107 of the General Obligations Law which provides that the Attorney-General may institute an action or proceeding to compel compliance with…
Practitioners open In the Matter of the People of the State of New York, by Louis J. Lefkowitz, Attorney-General of the State of New when New York security deposits turns on the distinction in this sentence: "Matter of State of New York v Parker, 30 NY2d 964)." Do not lift it out of the facts the court was deciding.
Key takeaways
- Maximum deposit: 1 month's rent for most residential tenancies
- Return deadline: 14 days after the tenant vacates, with an itemized statement of deductions
- Interest: Yes for buildings with six or more units — deposits must be held in interest-bearing accounts and interest paid to the tenant (less a 1% admin fee in many postures).
- Penalties: Wrongful withholding can support recovery of the deposit plus interest and possible punitive exposure under deceptive-practices theories; landlords risk forfeiture of the right to retain deposits when escrow rules are violated.
- Primary authority: N.Y. Gen. Oblig. Law § 7-103; N.Y. Mult. Dwell. Law § 60.
Deposit limits in New York
1 month's rent for most residential tenancies
Frequently asked questions
How much can a landlord charge for a security deposit in New York?
1 month's rent for most residential tenancies
How long does a landlord have to return my deposit?
14 days after the tenant vacates, with an itemized statement of deductions
What if my landlord keeps the deposit without an itemized list?
Wrongful withholding can support recovery of the deposit plus interest and possible punitive exposure under deceptive-practices theories; landlords risk forfeiture of the right to retain deposits when escrow rules are violated.
This guide covers New York residential security-deposit law as of 2026. Commercial leases and local ordinances can differ — verify the statute that applies to your unit.