| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent and utilities
Costs of damage Costs of moving and storage of tenant’s belongings |
| Return Deadline | 14 days |
| Itemized Deductions | Required |
| Penalty for Late Return | 2x deposit + amount wrongfully withheld |
For laws on security deposit collections and holdings in New York, click here.
Some cities and counties may have regulations which are different from those presented here. Always check local laws.
Security Deposit Deductions in New York
New York allows these deductions from a security deposit:
- Unpaid rent
- Costs of damage excluding normal wear and tear and any damage discovered and documented during the initial inspection
- Unpaid utility costs as provided by the lease agreement
- Moving and storage of the tenant’s belongings
Most states, including New York, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable and reflect actual landlord expenses.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What Is Considered Normal Wear in New York?
“Normal wear and tear” is damage and deterioration to a property that happens over time using an ordinary and reasonable level of care. Normal wear and tear includes things like:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
“Excessive damage” means any careless, reckless, or intentional damage that occurs because of someone on the property with the tenant’s permission. Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in New York?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in New York?
New York landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in New York?
Landlords in New York can charge a cleaning fee if it is specifically stated in the lease agreement, the landlord does not charge for cleaning done as a result of normal wear and tear, and the cleaning fee is reasonable.
Can the Landlord Charge for Painting in New York?
New York landlords can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
New York City’s Housing Maintenance Code requires repainting of multi-family dwellings every three years. This means a landlord cannot bill for repainting on the years it’s required by law, even when there’s tenant damage. Other local laws may impose similar standards.
Security Deposit Returns in New York
New York, landlords must give tenants written notice of their right to an inspection before the end of the lease. After an inspection, the tenant may repair any documented damage. The landlord then has 14 days to provide a written list of deductions and return the remaining deposit amount.
The landlord is not required to offer or conduct an inspection when the tenant terminates the lease on less than two weeks’ notice.
Step 1: Written Notice. The landlord must send written notice of the tenant’s option to request an inspection. The notice must be sent within a reasonable time before the fixed-term lease expires or after the landlord learns that the lease will end.
Step 2: Initial Inspection. A requested inspection must take place 1-2 weeks before the end of the tenancy, on 48 hours of written notice to the tenant.
Step 3: Itemized Statement of Repairs. After any inspection, the landlord must provide the tenant with an itemized statement of required repairs or cleaning. The tenant may see to these in order to avoid security deposit deductions.
How Long Do Landlords Have to Return Security Deposits in New York?
New York landlords have 14 days after the tenant vacates the rental unit to return a security deposit along with a written statement of deductions, as applicable.
Do Landlords Owe Interest on Security Deposits in New York?
Landlords in New York owe interest if the deposit was placed in an interest-bearing account and there is any interest left after the landlord retains a 1% administration fee.
If a rental unit is in a building with six or more units, the landlord must place security deposits in an account that gains interest at the prevailing rate. All interest is due to the tenant except the landlord may take 1% of the interest annually as an administration fee which means there may be none remaining for the tenant.
Landlords may credit the tenant for their interest due at the end of the lease or annually.
If the building has five or fewer units and the landlord chooses to hold security deposits in an interest-bearing account, they should follow these same rules.
How Do Landlords Give Notice in New York?
If deductions are to be made from the security deposit, an itemized statement of deductions must be sent. However, unlike most other states, New York law does not specify what methods of delivery are acceptable. Typically, security deposits must be returned by hand delivery or by first-class or certified mail to the tenant’s last known address.
Can a Security Deposit Be Used for Last Month’s Rent in New York?
New York law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Disputes in New York
If landlords do not return the security deposit or provide an itemized statement of deductions, if any, within the required 14-day time period, they forfeit their right to make deductions, and tenants can file for actual damages in court.
If a landlord is found to have intentionally violated the security deposit rules, they may be liable for up to twice the amount of the deposit in addition to the amount wrongfully withheld.
Tenants can take legal action against a landlord for:
- Failure to provide written notice that lists deductions if the security deposit is not returned in full
- Deductions that are not mentioned in the lease agreement
- Unreasonable deductions
How Can Tenants File a Dispute for a Security Deposit in New York?
If a landlord fails to perform their obligations regarding a security deposit, the tenant can file a dispute in Small Claims Court. The maximum amount that can be reclaimed through Small Claims Court is between $3,000 and $10,000 depending on where in the state the case is filed.
If the amount is greater than the court’s limit as a small claim, the tenant must file a civil case in the New York City Civil Court, or City Court if you are filing outside of New York City.
A small claims case regarding the return of a security deposit must be filed within three to six years,depending on the type of claim.
Cases are filed where the property is located or where the defendant lives, works or has a place of business. An attorney is not required but permitted. Filing fees are $10 to $20, depending on where the case is filed and the amount sought in damages.
Sources
- 1 N.Y. Gen. Oblig. Law § 7-108(1-a)(b)
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The entire amount of the deposit or advance shall be refundable to the tenant upon the tenant’s vacating of the premises except for an amount lawfully retained for the reasonable and itemized costs due to non-payment of rent, damage caused by the tenant beyond normal wear and tear, non-payment of utility charges payable directly to the landlord under the terms of the lease or tenancy, and moving and storage of the tenant’s belongings. The landlord may not retain any amount of the deposit for costs relating to ordinary wear and tear of occupancy or damage caused by a prior tenant.
Source Link - 2 N.Y.C. Admin. Code § 27-2013(b)
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In occupied dwelling units in a multiple dwelling, the owner shall:
(1) Paint or cover the walls and ceilings with wallpaper or other acceptable wall covering; and
(2) Repaint or re-cover the walls and ceilings with wallpaper or other acceptable wall covering every three years, and more often when required by contract or other provisions of law.
Source Link - 3 N.Y. Gen. Oblig. Law § 7-108(1-a)(e)
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Within fourteen days after the tenant has vacated the premises, the landlord shall provide the tenant with an itemized statement indicating the basis for the amount of the deposit retained, if any, and shall return any remaining portion of the deposit to the tenant. If a landlord fails to provide the tenant with the statement and deposit within fourteen days, the landlord shall forfeit any right to retain any portion of the deposit.
Source Link - 4 N.Y. Gen. Oblig. Law § 7-108(1-a)(c)
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Within a reasonable time after notification of either party’s intention to terminate the tenancy, unless the tenant terminates the tenancy with less than two weeks’ notice, the landlord shall notify the tenant in writing of the tenant’s right to request an inspection before vacating the premises and of the tenant’s right to be present at the inspection. If the tenant requests such an inspection, the inspection shall be made no earlier than two weeks and no later than one week before the end of the tenancy. The landlord shall provide at least forty-eight hours written notice of the date and time of the inspection. After the inspection, the landlord shall provide the tenant with an itemized statement specifying repairs or cleaning that are proposed to be the basis of any deductions from the tenant’s deposit. The tenant shall have the opportunity to cure any such condition before the end of the tenancy. Any statement produced pursuant to this paragraph shall only be admissible in proceedings related to the return or amount of the security deposit.
Source Link - 5 N.Y. Gen. Oblig. Law § 7-103(2-a)
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Whenever the money so deposited or advanced is for the rental of property containing six or more family dwelling units, the person receiving such money shall, subject to the provisions of this section, deposit it in an interest bearing account in a banking organization within the state which account shall earn interest at a rate which shall be the prevailing rate earned by other such deposits made with banking organizations in such area.
Source Link - 6 N.Y. Gen. Oblig. Law § 7-103
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Whenever the person receiving money so deposited or advanced shall deposit such money in a banking organization, such person shall thereupon notify in writing each of the persons making such security deposit or advance, giving the name and address of the banking organization in which the deposit of security money is made, and the amount of such deposit. Deposits in a banking organization pursuant to the provisions of this subdivision shall be made in a banking organization having a place of business within the state. If the person depositing such security money in a banking organization shall deposit same in an interest bearing account, he shall be entitled to receive, as administration expenses, a sum equivalent to one per cent per annum upon the security money so deposited, which shall be in lieu of all other administrative and custodial expenses. The balance of the interest paid by the banking organization shall be the money of the person making the deposit or advance and shall either be held in trust by the person with whom such deposit or advance shall be made, until repaid or applied for the use or rental of the leased premises, or annually paid to the person making the deposit of security money.
Source Link - 7 N.Y. Gen. Oblig. Law § 7-108(1-a)(g)
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Any person who violates the provisions of this subdivision shall be liable for actual damages, provided a person found to have willfully violated this subdivision shall be liable for punitive damages of up to twice the amount of the deposit or advance.
Source Link - 8 N.Y. C.P.L.R. § 214(4)
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The following actions must be commenced within three years:
…
4. an action to recover damages for an injury to property except as provided in section 214-c.
Source Link - 9 N.Y. C.P.L.R. § 213(2)
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The following actions must be commenced within six years:
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2. an action upon a contractual obligation or liability, express or implied, except as provided in section two hundred thirteen-a or two hundred fourteen-i of this article or article 2 of the uniform commercial code or article 36-B of the general business law;
Source Link
