Security Deposit

Most landlords will require a security deposit from you. A security deposit is a dollar amount, equal to one month’s rent. This means that the landlord cannot ask for last month’s rent and a security deposit. If the rent is increased during the term of the tenancy, the landlord may require that the tenant pay the additional amount equal to the new monthly rent at the time of lease renewal.

The purpose of the security deposit is to cover any damage to the apartment or house that is more than just the usual “wear and tear” on the property. Examples of normal wear and tear include fading paint, minor scuffed hardwood floors from daily foot traffic, worn carpet, or loose door handles.

After signing a lease but before a tenant moves in, the landlord should offer the tenant a chance to inspect the premises with the landlord or an agent of the landlord, to determine the property’s condition. If the tenant requests an inspection, both parties should sign a written agreement before the tenant’s lease begins that establishes the condition of the property prior to move-in and notes any existing damages or defects. After the tenant vacates the property, the landlord is not allowed to keep any amount of their security deposit for issues that were noted in this agreement made prior to occupancy.

In New York state, landlords with buildings of six or more units must put security deposits in an interest-bearing account at a New York state bank. The owner should notify the tenant of the name and address of the bank and should pay the tenant the annual interest that accrues on their deposit (minus a 1% fee to cover the owner’s administrative costs). The tenant is allowed to choose how the interest amount should be applied: they can ask that the interest be paid to them as a lump sum at the end of the year, subtracted from their rent, or held in a trust until the end of their tenancy.

Your landlord must inform you of your right to request an inspection of your residence before your move-out date. You have the right to be present during the inspection. The inspection must take place no earlier than two weeks before moving out and no later than one week before your move-out date.

At least 48 hours before the inspection, the landlord should provide you with the date and time of the inspection in writing. After the inspection, the landlord should provide you with an itemized statement of repairs or cleaning fees that the landlord is planning to claim as a deduction from your deposit. You may then be able to fix any issues before moving out. If the landlord plans to keep some or all of the security deposit, the landlord must provide you with an itemized list of the repairs, utility charges payable directly to the landlord, amount of outstanding rent, or costs of moving or storage of tenant’s belongings that the landlord claims are the reasons for keeping some or all of the security deposit. If the landlord fails to provide the tenant with the itemized statement of charges/costs as the reason for keeping the deposit, then the landlord forfeits any rights to keep the security deposit.

It is recommended that tenants take pictures when they move in, as well as before they move out and return the keys on time at the end of the lease or tenancy. If possible, get a receipt for the return of the keys. This will help tenants who may later need to pursue the landlord in court to recover their deposit.

Last Updated January 2026