Since the 2019 Housing Stability and Tenant Protection Act, New York landlords cannot collect a security deposit larger than one month's rent. Within 14 days after a tenant vacates, the landlord must return the deposit with an itemized statement of any deductions. Missing that deadline forfeits the right to keep any portion.
Under N.Y. Gen. Oblig. Law § 7-108, added by the HSTPA in 2019, "no deposit or advance shall exceed the amount of one month's rent" for most residential rentals (§ 7-108(1-a)(a)). Within 14 days after the tenant vacates, the landlord must provide an itemized statement of any retained amount and return the balance (§ 7-108(1-a)(e)); failure to do so forfeits the right to retain any portion. Tenants may request a pre-move-out inspection, with at least 48 hours' notice, and cure noted conditions before tenancy ends (§ 7-108(1-a)(d)). Deposits are held in trust and may not be commingled, and for buildings of six or more units they must sit in an interest-bearing account, with the landlord keeping a 1% administrative fee (§ 7-103).
A landlord who willfully violates these rules is liable for punitive damages of up to twice the amount of the deposit, in addition to actual damages (N.Y. Gen. Oblig. Law § 7-108(1-a)(g)). Failure to provide the itemized statement and balance within 14 days forfeits any right to retain the deposit.
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