Can a Landlord Withhold My Security Deposit in NY?

Understanding Security Deposits in NYC: A Tenant’s Legal Guide

As a tenant in New York City, your security deposit is often a significant sum of money—typically equal to one month’s rent—that you want to ensure is properly handled and returned when you move out. New York General Obligations Law (GOL) § 7-108(1-a)(b) states that landlords must return a tenant’s security deposit in full upon the tenant’s move-out. However, disputes over security deposits are common, and many landlords try to withhold funds for questionable reasons. As a New York lawyer representing tenants, I want to break down your rights and how to protect yourself.

How Much Can a Landlord Charge for a Security Deposit?

Under New York State law, landlords of rent-stabilized and market-rate apartments can charge no more than one month’s rent as a security deposit. This applies to most residential leases in NYC, and landlords cannot demand extra deposits for things like pets or potential damages.

Where Must a Security Deposit Be Held?

Landlords are required to:

  • Hold your deposit in a separate account: They cannot mix it with their personal or business funds.
  • Provide bank details: If the building has six or more apartments, the landlord must inform you of the name and address of the bank where your deposit is being held, as well as the account number.
  • Pay interest (in some cases): If the building has six or more units, your deposit must be placed in an interest-bearing account. You are entitled to the interest earned, minus a 1% administrative fee the landlord may deduct.

When Can a Landlord Keep Your Security Deposit?

Landlords can only use your security deposit for:

  • Unpaid rent
  • Damage beyond normal wear and tear
  • Other lease violations that cause financial loss

However, they cannot deduct for things like minor scuffs on walls, small nail holes, or worn carpets that naturally occur with regular use. If your landlord tries to charge you for routine wear and tear, they’re violating the law.

What Happens at the End of Your Lease?

When you move out, your landlord must:

  1. Offer a pre-move-out inspection to identify potential deductions (if you request one).
  2. Return your deposit within 14 days after you move out, along with an itemized statement explaining any deductions.

If your landlord fails to return your deposit on time or provides vague deductions, you have the right to take legal action.

How to Protect Your Security Deposit

As a tenant, you should take steps to avoid deposit disputes:

  • Document everything: Take photos/videos of the apartment when you move in and out.
  • Request a pre-move-out inspection: This can help you fix any issues before your landlord deducts from your deposit.
  • Communicate in writing: If you make repairs or clean before leaving, keep records and emails.
  • Follow up if your deposit isn’t returned: If you don’t receive it within 14 days, hire an attorney to send your former landlord a legal demand letter demanding the immediate return of your deposit.

What to Do If Your Landlord Won’t Return Your Deposit

If your landlord refuses to return your deposit, you may have legal options, including:

  • Filing a complaint with the New York Attorney General’s office
  • Taking the landlord to small claims court (if the deposit is under $10,000)
  • Hiring a lawyer to negotiate or pursue legal action

As a tenant advocate, I help NYC renters fight back against landlords who illegally withhold security deposits. If you’re dealing with a deposit dispute, reach out—I’ll make sure your rights are protected.

Need Legal Help? Contact me today for a consultation.

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ATTORNEY ADVERTISING. This blog post is provided for informational purposes only and does not constitute legal advice. For specific legal guidance related to your situation, please consult with an attorney. Prior results do not guarantee a similar outcome.

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