How do security deposits work and how do I get mine back?

A security deposit is money you give your landlord when you move in. It protects your landlord in case you cause damage to the home or do not pay rent. In New York, the maximum security deposit your landlord can ask for is one month’s rent. Your landlord must follow rules about how it is handled and when it must be returned.

When you move in

Your landlord must offer to walk through the home with you before you move in.

During the walk-through:

• Look for any damage or problems.
• Take photos and videos.
• Write down anything that is damaged. You and your landlord should sign this list.

This list is important. It shows what damage was already there. The landlord cannot charge you for problems that existed before you moved in.

Your landlord must keep your security deposit in a separate New York bank account and tell you where it is. If you live in a building with 6+ units, you earn the interest on the deposit.

When you move out

If you or your landlord decide to end your rental agreement, you need to let each other know. Your landlord must tell you in writing that they are ending your agreement and you have the right to ask for an inspection.

If you ask your landlord for a move-out inspection, it should happen 1-2 weeks before you move out. Asking for a move-out inspection is a good idea. It will show the condition of your home when you move out. This protects you from being accused later of causing damage you did not do. During this inspection, your landlord should give you a written list of anything they think you need to repair or clean.

You must be given a chance to fix the issues before the landlord takes money from your deposit to fix them. If you fix some or all of the issues, your landlord must give you back that money from your deposit.

After you move out, your landlord has 14 days to either:

• Return your security deposit, including interest if you live in a building with 6+ units, or
• Give you a written list of reasons why they are keeping some or all of it.

Remember: your landlord can keep all or part of your security deposit for four reasons only:

1. Unpaid rent.
2. Damage you caused to the home beyond normal wear and tear.
3. Unpaid utility charges you have to pay to your landlord.
4. Moving and storage of your belongings.

If your landlord keeps your security deposit for a different reason, that is illegal.

If the landlord does not return the deposit or give you a written list within 14 days, they cannot keep the deposit.

If your landlord does not return the deposit

1. If your landlord does not return your deposit, or only returns part of it, ask for the money back in writing. This is called a demand letter. You can fill out a demand letter online or print it out. Download the sample demand letter below.

2. The New York State Attorney General’s Office can help tenants get back their security deposits through mediation. You can file a complaint after you have tried to resolve the matter with your landlord.

3. If the landlord still does not return your deposit, you can start a Small Claims Court case.

If the property is sold, the new owner is responsible for your security deposit. You should receive notice of the transfer and the new owner should have your deposit from the old owner.