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Security DepositMay 27, 2026
Security Deposit Deductions in New York: What Landlords Can and Cannot Charge For
New York’s HSTPA limits deposits to one month’s rent and bans pet fees. Here’s what landlords can legally deduct under Gen. Oblig. Law § 7-108.
Since the Housing Stability and Tenant Protection Act (HSTPA) took effect in 2019, New York has some of the strictest rules in the country about what a landlord can charge for — and what they can deduct from your security deposit.
What They Can Deduct
Under § 7-108(1-a)(c), permissible deductions are limited to:
• The actual and reasonable cost of repairing damage beyond normal wear and tear
• Unpaid rent
That’s it. The landlord must provide an itemized statement with copies of receipts showing actual costs. Estimates or flat-rate charges without documentation are insufficient.
What They Cannot Deduct
• Normal wear and tear (faded paint, minor scuffs, worn carpet from regular use)
• Pet deposits or pet fees (banned entirely by HSTPA)
• Any amount exceeding one month’s rent (the maximum deposit allowed)
• “Cleaning fees” for normal cleaning between tenants
• Repainting for normal fading or scuffing
If your landlord charged a pet deposit when you moved in, the HSTPA makes that illegal — you can demand it back.
The 14-Day Deadline
The landlord has 14 days from the date you vacate to either return the full deposit or provide an itemized statement of deductions. Missing this deadline is often treated as forfeiture of the right to make any deductions.
Interest on Your Deposit
For buildings with 6 or more units, the landlord is required to hold your deposit in an interest-bearing account at a New York bank. The statute provides that the tenant receives the interest earned, minus a 1% administrative fee. If the landlord failed to place the deposit in such an account, the tenant may demand that the deposit be applied to rent.
What to Do If They Deducted Improperly
A demand letter citing § 7-108 and the HSTPA, with specific objections to each improper deduction, is the standard first step. In New York City, you can also file a complaint with the Department of Consumer and Worker Protection (DCWP). For amounts up to $10,000, Small Claims Court is available without a lawyer.
Ready to take the next step?
Generate a demand letter or cancellation email sequence grounded in the statutes discussed in this article.
Generate your New York demand letterThis article provides general information about consumer protection statutes. It does not constitute legal advice and does not evaluate specific claims. Statutes may be amended; verify current law with official sources. Consider consulting a licensed attorney for advice about your specific situation.