New York's 2019 rent-law reform (HSTPA) rewrote the deposit story statewide: the cap dropped to one month's rent, the return deadline tightened to a brisk 14 days with an itemized bill, and in New York City's larger buildings the money must sit in an interest-bearing New York bank account.
| Max deposit | 1 month's rent The 2019 rent-law reform (HSTPA) cut the old unlimited cap to one month statewide. |
|---|---|
| Return deadline | 14 days after you give up possession 14 days with an itemized bill for repairs. |
| Interest on deposit | No statewide rule No statewide interest requirement. Local exception: In New York City buildings with 6+ units, deposits must be held in an interest-bearing NY bank account and the tenant receives the interest. Interest aside, the return deadline above is what actually moves your money. |
| Statute | N.Y. Gen. Oblig. § 7-108 & HSTPA 2019 |
In New York, the ceiling is 1 month's rent. The 2019 rent-law reform (HSTPA) cut the old unlimited cap to one month statewide. Whatever the cap, the deposit remains your money: the cap limits the request, and the sections below limit what can happen to it afterward.
New York landlords have 14 days from when you give up possession — normally the day you return all keys — to either refund the deposit or send the written itemization that state law requires. 14 days with an itemized bill for repairs. Mark the date on your calendar the day you move; a deadline that passes without refund or statement is what converts an awkward wait into a legal claim.
No statewide interest requirement. Local exception: In New York City buildings with 6+ units, deposits must be held in an interest-bearing NY bank account and the tenant receives the interest. Interest aside, the return deadline above is what actually moves your money.
Like nearly every state, New York lets landlords charge for real damage and unpaid costs — but not for normal wear and tear. Faded paint, worn carpet in a walkway, and small nail holes from picture hangers are the landlord's cost of doing business; broken fixtures, uncleaned appliances, and unpaid rent are chargeable. When deductions are taken, New York requires them in writing — so photograph the unit at move-out and keep the timestamped set until the money arrives. Every line item can then be checked against how the unit actually looked, which is how inflated deductions get beaten.
Landlords who keep a deposit in bad faith can be liable for twice the amount. The route is almost always the same: a written demand letter citing the deadline and N.Y. Gen. Oblig. § 7-108 & HSTPA 2019, then small claims court in the county where the unit sits. Filings are cheap, lawyers aren't required, and landlords who ignored two letters usually settle the week a court date appears.
Three moves protect a New York deposit: (1) compare the deposit you're being asked for against the cap above before you sign; (2) photograph the unit at move-in and again at move-out — documentation settles most disputes before they start (our interactive checklist walks you through it); (3) the day you return keys, write the deadline on your calendar and send your forwarding address in writing. If that date passes in silence, the demand letter template takes about ten minutes, and small claims court is the next stop.
Cap check, your personal deadline date, and the interest your deposit earned — in about twenty seconds.
This page summarizes N.Y. Gen. Oblig. § 7-108 & HSTPA 2019 as last reviewed October 5, 2026. Laws and locally announced rates change — confirm current figures with the New York housing authority or attorney general's consumer site before relying on them.