How do I dispute a security deposit return in New York?

Real Property Law § 7-103 (as amended by the Housing Stability and Tenant Protection Act of 2019) sharply tightened New York's deposit rules.

1. One-Month Cap

For residential leases, the deposit (plus any advance) cannot exceed one month's rent. Demanding more is unlawful.

2. 14-Day Return Deadline

Within 14 days after the tenant vacates, the landlord must return the deposit along with an itemized statement indicating the basis for any amount withheld. Failure to provide the itemization within 14 days means the landlord forfeits the right to retain any portion of the deposit (§ 7-108(1-a)(e)).

3. Pre-Move-Out Inspection

The landlord must offer the tenant the opportunity to inspect the unit before move-out and provide written notice of needed repairs (§ 7-108(1-a)(c)). Failure to offer the inspection can waive the right to deduct for those conditions.

4. Allowed vs. Prohibited Deductions

Permitted: unpaid rent, damage beyond normal wear and tear, reasonable cleaning costs only to restore "the same level of cleanliness" as at the start. Prohibited: ordinary wear and tear, repainting after long tenancies, normal carpet wear.

5. Punitive Damages

A landlord found to have acted in bad faith may be liable for up to two times the deposit amount as punitive damages (§ 7-108(1-a)(g)).

6. Demand & Small Claims

Send a written demand by certified mail. Then file in NYC Small Claims Court (up to $10,000) or town/village small claims (up to $3,000). The statute of limitations is 6 years for breach of written contract (CPLR § 213).

This is legal information, not legal advice.