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Real Estate

Security Deposit Refund

A deposit is still the tenant's money while the landlord holds it, and the end of a tenancy is when the rules about returning it start to run on a schedule.

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01 GUIDE

Security Deposit Refund: what usually happens

How the refund is supposed to work

For most residential tenancies in New York, the landlord must keep the deposit separate from its own funds, and in larger buildings in an interest-bearing account. After a tenant gives notice of moving out, the landlord should offer an inspection so the tenant has a chance to fix problems in advance. After move-out, the landlord has a limited time to return the deposit along with an itemized statement of any deductions. Deductions are generally limited to unpaid rent and damage beyond normal wear and tear, along with a few other categories the law describes.

Documenting the condition

The most persuasive refund requests rest on photos or video taken at move-in and again at move-out, ideally timestamped and covering every room. Keep the lease, the deposit receipt, any statement of where the deposit was held, and rent records showing nothing was owed. Return the keys in a way you can document, and give a forwarding address in writing. If you are leaving on bad terms, keep communications short and in writing, and do not treat the deposit as your last month's rent unless the landlord agrees in writing, since that can open a separate dispute. Landlords benefit from the same discipline: dated move-in condition reports and repair invoices are what support a deduction if it is challenged.

When the money does not come back

If no refund or statement arrives within the required time, or the deductions look unfounded, a written demand is a common next step, followed by small claims court if needed. The state attorney general's office also accepts complaints about security deposits. Commercial deposits are governed mostly by the lease, though New York still requires landlords to hold them in trust rather than mixing them with their own money. Whether a lawyer's involvement makes sense usually depends on the amount, and for a modest security deposit refund we may simply help you plan the steps and pursue it yourself.

02 ATTORNEYS

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Attorney Advertising. This page is general information about security deposit refund and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts of each matter, and prior results do not guarantee a similar outcome. Laws differ by state and change over time.