💵 Security Deposit Itemization
New York General Obligations Law § 7-108 Compliant
🚨 STRICT 14-DAY DEADLINE
New York law requires itemized statement within 14 days of tenant vacating:
- Start counting: Day after tenant returns keys and vacates
- 14 calendar days: Not business days – includes weekends and holidays
- Must include: Itemized list of deductions OR statement that full deposit being returned
- Penalty for missing deadline: Forfeit right to deduct ANYTHING – must return full deposit
- Additional penalty: May owe tenant twice the deposit amount if failure to return was in bad faith
⚠️ What Can Be Deducted
Landlords can only deduct for:
- Unpaid rent: Rent owed for period tenant occupied unit
- Damage beyond normal wear and tear: NOT including reasonable deterioration from ordinary use
- Breach of lease: Costs to remedy specific lease violations
CANNOT deduct for:
- Normal wear and tear (faded paint, worn carpet from use, minor wall marks)
- Cleaning if apartment was left reasonably clean
- Upgrades or improvements landlord wanted to make anyway
- Future rent (if tenant broke lease, can sue separately but not from deposit)
📋 Documentation Requirements
For each deduction, provide:
- Specific description: What was damaged or needed
- Itemized cost: Labor and materials broken down
- Supporting evidence: Photos, receipts, invoices (recommended)
Best practice: Attach photos of damage and copies of repair receipts to itemization
📝 Security Deposit Statement
Must be within 14 days of tenant vacating
Date tenant returned keys and vacated
Property Information
Tenant Information
Security Deposit Details
NYC: 6+ unit buildings must pay interest on deposits held 1+ year
Deductions
💵 Deposit Summary
Landlord Information
📚 Complete Guide to NY Security Deposit Returns
The 14-Day Rule
This is the MOST IMPORTANT aspect of NY security deposit law:
🚨 14-Day Deadline Is Absolute
Counting the days:
- Day 0: Tenant returns keys and vacates apartment
- Day 1-14: You have these 14 calendar days (not business days)
- Day 14: Deadline – itemization must be postmarked or delivered by this day
Example: Tenant vacates June 1
- June 1: Day of move-out (Day 0)
- June 2-15: Your 14 days (includes weekends)
- June 15: Absolute deadline
Missing deadline:
- You forfeit ALL rights to make ANY deductions
- Must return full deposit + interest (if applicable)
- Even if there’s $5,000 in damage and $500 deposit, you lose deposit
- Can still sue tenant separately for damages, but deposit must be returned in full
What Counts as “Vacating”
The 14-day clock starts when tenant:
- Returns ALL keys: Including unit keys, mailbox keys, amenity keys
- Removes all belongings: Apartment must be completely empty
- Provides forwarding address: Where deposit should be sent
Special cases:
- Lease ends June 30, tenant moves out June 25: Clock starts June 25 (when keys returned)
- Tenant leaves items behind: Clock starts when you’ve properly disposed of items per NY law
- No forwarding address: Send to last known address; deadline still applies
Allowable Deductions
| CAN Deduct | CANNOT Deduct |
|---|---|
| Unpaid rent for time tenant occupied unit | Normal wear and tear from ordinary use |
| Actual damage beyond normal wear (holes in walls, broken fixtures) | Routine cleaning if unit left reasonably clean |
| Repairs to tenant-caused damage (broken window, stained carpet) | Repainting unless tenant painted without permission or damaged walls |
| Cleaning if unit left unreasonably dirty (requires extensive cleaning) | Carpet replacement for normal aging/wear |
| Key replacement if tenant didn’t return keys | Upgrades landlord wanted to make anyway |
| Lease violations (unauthorized pet damage, smoking in no-smoke unit) | Future rent if tenant broke lease early |
Normal Wear and Tear
Cannot deduct for reasonable deterioration from ordinary use:
Examples of Normal Wear and Tear
Walls and Paint:
- Faded paint from sun exposure
- Minor scuff marks, small nail holes from hanging pictures
- Paint deterioration after 5+ years
Flooring:
- Worn traffic patterns in carpet
- Minor scratches on hardwood from furniture
- Carpet matting from ordinary use
Fixtures:
- Loose door handles from regular use
- Faucet drips from age/wear
- Light switch wear
Windows:
- Window hardware loosening over time
- Minor scratches on glass
Documentation Best Practices
Move-In Inspection
Document condition at lease start:
- Take detailed photos of entire unit
- Note existing damage on inspection checklist
- Have tenant sign acknowledgment of condition
- Keep copies in permanent file
Move-Out Inspection
Document condition at lease end:
- Take photos on day tenant vacates
- Compare to move-in photos
- Note any new damage
- Ideally do walkthrough with tenant present
Get Repair Estimates
Obtain documentation of costs:
- Get written estimates from contractors
- Save actual receipts for work completed
- Break down labor vs. materials
- Keep invoices for cleaning, repairs, etc.
Prepare Itemization Within 14 Days
Create detailed statement:
- List each deduction separately
- Provide specific description of damage/issue
- State actual cost with breakdown
- Attach photos and receipts
Send Via Certified Mail
Proof of delivery:
- Send to forwarding address tenant provided
- Use certified mail, return receipt requested
- Keep copy and receipt for records
- Mail must be postmarked within 14 days
NYC Interest Requirements
New York City has special rules for security deposits:
⚠️ NYC Buildings with 6+ Units
Interest requirement:
- Deposits held 1+ year must earn interest
- Must be held in NY bank account earning prevailing rate
- Landlord keeps 1% administrative fee
- Tenant receives rest of interest
Calculation example:
- Deposit: $2,000
- Interest rate: 2.5%
- Held for: 2 years
- Total interest: $2,000 × 2.5% × 2 = $100
- Landlord keeps: $100 × 1% administrative = $1
- Tenant receives: $99
Outside NYC: No interest requirement (unless local law requires)
Common Mistakes
❌ Top 10 Deposit Return Errors
- Sent itemization on Day 15: One day late. Forfeited all deduction rights – must return full deposit.
- Deducted for carpet replacement: Carpet was 10 years old, worn from normal use. Can’t deduct for wear and tear.
- Deducted for repainting entire unit: No tenant-caused damage, just wanted fresh paint. Not allowed.
- Vague itemization: “Cleaning – $200.” Not specific enough. Must detail what cleaning was needed.
- No supporting documentation: Claimed $1,500 damage repair, no receipts or estimates. Tenant disputed.
- Deducted future rent: Tenant broke 2-year lease after 6 months, kept deposit for remaining 18 months. Can sue separately for damages, but deposit only for actual costs.
- No forwarding address: Tenant didn’t provide address, landlord didn’t send anything. Still violates 14-day rule. Should send to last known address.
- Partial itemization: Sent list of deductions on Day 10, but said “will send receipts later.” Must send complete itemization within 14 days.
- Forgot NYC interest: 8-unit building, held deposit 3 years, forgot to pay interest. Violation + tenant can demand interest.
- Deducted for unauthorized paint color: Tenant painted bedroom blue without permission. Deducted $800 for repainting. Not actual damage – tenant improved unit. Can’t deduct.
Penalties for Violations
Consequences of improperly handling deposits:
- Missing 14-day deadline: Forfeit ALL deduction rights, must return full deposit
- Bad faith retention: Tenant can sue for DOUBLE the deposit amount plus attorney fees
- Improper deductions: Tenant can sue for amount wrongfully withheld plus court costs
- No interest (NYC 6+ units): Must pay interest owed plus potential penalties
Best Practices
✅ Deposit Return Checklist
- Set calendar reminder: For Day 10 after tenant vacates – gives buffer to finish
- Inspect immediately: Do move-out inspection day tenant returns keys
- Take comprehensive photos: Every room, all angles, before any repairs
- Get estimates fast: Line up contractors in advance for quick estimates
- Be specific in itemization: “Replace bedroom door damaged by tenant (3 holes)” not “Door repair”
- Attach all documentation: Photos, receipts, estimates with itemization
- Use certified mail: Proof itemization sent on time
- Keep copies: Itemization, photos, receipts, certified mail receipt – forever
- When in doubt, return: If questionable whether damage is wear and tear, return deposit
- Consider full return: For good tenants, returning full deposit maintains goodwill
⚖️ Legal Disclaimer
This form is provided for informational purposes only and does not constitute legal advice. New York General Obligations Law § 7-108 strictly requires landlords to provide itemized statement of security deposit deductions within 14 days of tenant vacating. Missing this deadline forfeits ALL rights to make ANY deductions.
The 14-day deadline is absolute and starts the day tenant returns keys and vacates. Count carefully – this is 14 calendar days, not business days. Itemization must be postmarked or delivered by Day 14. Even one day late means you forfeit all deduction rights and must return full deposit.
You can only deduct for unpaid rent and damage beyond normal wear and tear. Cannot deduct for routine cleaning, repainting (unless tenant damaged walls), carpet replacement from normal aging, or upgrades you wanted to make. When in doubt, return the money – improper deductions can result in tenant lawsuit.
NYC buildings with 6+ units must pay interest on deposits held 1+ year. Must be kept in NY bank account. Failure to pay interest violates law.
Bad faith retention of deposit can result in landlord owing tenant DOUBLE the deposit amount. Document everything, be honest about deductions, and when questionable, err on side of returning money to tenant. For questions about specific deductions or deadline calculations, consult landlord-tenant attorney.
