Security Deposit in New York
State-specific overview · Property & Real Estate
Landlords must place deposits in interest-bearing accounts and return them within one to six years depending on lease length.
How New York treats Security Deposit
New York requires landlords to deposit security deposits in interest-bearing accounts separate from operating funds. For leases under one year, deposits must be returned within one year; for longer leases, within six years of lease termination. Landlords must provide an itemized accounting of deductions within a reasonable time. Failure to comply can result in the tenant recovering the full deposit plus interest and damages.
The general definition of Security Deposit
Money a tenant pays upfront to a landlord as a guarantee against damage or unpaid rent.
A security deposit is cash that a tenant gives to a landlord at the start of a lease, held as insurance against property damage or unpaid rent. The landlord must keep this money in a separate account and return it to the tenant when the lease ends, minus any deductions for legitimate damages or unpaid bills. Most states have strict rules about how quickly landlords must return deposits (often 30–45 days) and require them to itemize any deductions. If a landlord wrongfully keeps the deposit, the tenant can sue for the full amount plus penalties.
Read the full Security Deposit entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in New York.