New York Security Deposit Law
What landlords in New York need to know about deposit limits, refund deadlines, interest, and penalties for getting it wrong.
Deposit cap
1 month's rent
Refund deadline
14 days
Interest required?
Yes
Required for buildings with 6 or more units; the deposit must be held in an interest-bearing account.
Separate account?
Yes
Penalty for noncompliance
Willful violation of itemization or timing rules can result in forfeiture of the right to withhold and, in bad faith, up to twice the deposit.
Statute: N.Y. Gen. Oblig. Law § 7-108
This page summarizes general state-level rules as of 2026 and does not cover city or county ordinances, which can be stricter. Verify against the statute cited above or with a local attorney before relying on it. See all states.