What Can I Do If My Landlord Is Refusing to Return My Security Deposit in NY State?
By Fight Landlords
Your landlord is holding your money. Under New York State law, the security deposit always belongs to the tenant. When your landlord refuses to return it or withholds it improperly, they are violating the law, and you have specific, powerful steps to take.
This isn't an uphill battle. When you know the rules and have the documentation, getting justice is straightforward.
Your 14-Day Deadline and Their Forfeit Rule
The first step in fighting back is knowing the law's most critical deadline.
Here's what the law actually says:
Requirement
What It Means for You
14-Day Return Mandate
Your landlord must return your full security deposit within 14 days of you moving out.
Itemized Statement
If they plan to keep any portion of the deposit (for damages beyond normal wear and tear or unpaid rent), they must send you a detailed, itemized statement of the deductions and their costs within that same 14-day period.
The Forfeit Rule (Crucial!)
If your landlord fails to provide both the remaining deposit and the itemized statement within 14 days, they forfeit the right to keep ANY part of the deposit, even if you did cause damage. This is a common and costly mistake for landlords.
Myth-busting Focus: Your lease agreement does not override this law. Any clause in your lease that attempts to give the landlord more than 14 days is void under New York State law.
3 Actionable Steps to Take Immediately
When the 14-day clock runs out and your deposit is missing, it's time to create a legal paper trail.
Step 1: Review Your Documents 🔍
Gather all relevant documents:
Your Lease Agreement.
Any pre-move-out inspection report (You have the right to request one for move-outs after July 14, 2019).
Photos or videos of the unit taken after you moved out and cleaned up. This proves the condition of the apartment.
Step 2: Send a Formal Written Demand 📝
Do not rely on emails or text messages alone. Your next move is a formal, written demand letter (often called a "30-day demand").
What to Include: State the date you moved out, reference the 14-day deadline, and assert that the landlord has violated General Obligations Law § 7-108. Clearly demand the immediate return of the full amount plus any accrued interest.
How to Send: Always send this letter by Certified Mail with a return receipt requested. This receipt is your official, court-ready evidence that the landlord received your demand and chose to ignore it.
Step 3: Consider Mediation or a Formal Complaint 🤝
If the landlord ignores your certified demand letter, you have options before going to court:
Local Tenant Agencies: Many cities and counties offer mediation services through local tenant-landlord agencies. This is often a faster, lower-cost way to reach a settlement.
New York Attorney General: You can file a formal complaint with the New York Attorney General’s Office, Consumer Frauds and Protection Bureau. This puts an official regulatory body on notice about your landlord's conduct.
Taking Legal Action: Winning Back Double Your Deposit
The most definitive path to recovery is filing a claim in Small Claims Court. This process is designed to be accessible to tenants without a lawyer.
Filing in Small Claims Court
Jurisdiction Limits: You can file a claim for your deposit (and potential damages) in Small Claims Court as long as the total amount is within the limit for your location (e.g., up to $10,000 in NYC Civil Court, or up to $5,000 in City Courts outside NYC).
The Landlord's Burden: In any dispute over a security deposit in New York, the landlord bears the burden of proof to show that their deductions were reasonable and lawful. If they failed the 14-day rule, they cannot meet this burden.
The Law's Punitive Damages: Up to Twice Your Deposit 💰
The true power of this law lies in the penalty for a landlord's bad faith.
The court may award you:
The full amount of the wrongfully withheld deposit.
Any accrued interest.
Punitive damages of up to twice the amount of the deposit if the court finds the landlord willfully violated the security deposit laws.
Action Gets Results: When you have a clear, documented case—showing they missed the 14-day deadline or commingled your funds—the court can and often does hit the landlord with this maximum penalty.
Additional Financial Rights You May Be Owed
Beyond the principal deposit, your landlord may owe you interest.
Interest-Bearing Account Requirement: If your landlord owns a building with six or more residential units, they are legally required to keep your deposit in an interest-bearing account at a New York State bank.
Administrative Fee: The landlord is allowed to retain a small 1% annual administrative fee, but the rest of the accrued interest belongs to you and must be returned with your deposit.
This means you are not just fighting for your original money; you are fighting for the full amount of your deposit, any owed interest, and potentially double damages for their unlawful refusal.
