Move-Out Inspection and Security-Deposit Deduction Protocol

SECTION: Landlord Operator Playbook JURISDICTION: New York State / New York City AUDIENCE: Landlord, Property Manager, Leasing Operator

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The Legal Baseline

For covered New York residential tenancies, General Obligations Law (GOL) §7-107 (rent-stabilized units) and §7-108 (other residential units) permit retention only for reasonable, itemized costs of unpaid rent, tenant-caused damage beyond ordinary wear and tear, lease-authorized utility charges payable directly to the landlord, and moving and storage of the tenant's belongings. Neither statute permits retention for ordinary wear and tear or damage caused by a prior tenant.

The controlling statutes also create a defined inspection process. After the lease is signed and before occupancy, the landlord must offer an inspection opportunity. If the tenant requests it, the parties execute a written condition agreement before occupancy. A condition recorded in that agreement cannot later support a deposit retention. After either party gives termination notice, the landlord generally must give written notice of the tenant's right to request and attend a pre-vacate inspection; the statute contains an exception when the tenant gave less than two weeks' termination notice. If requested, the inspection must fall between two weeks and one week before the tenancy ends, with at least 48 hours' written notice. The tenant must receive an itemized statement of proposed repairs or cleaning deductions and an opportunity to cure before the tenancy ends.

Within 14 days after vacancy, the landlord must give an itemized statement explaining any retained amount and return the remainder. Missing both within that period forfeits the right to retain any portion of the deposit. In a dispute, the landlord bears the burden of proving that a retained amount was reasonable; a willful statutory violation can result in punitive damages of up to twice the deposit or advance, in addition to actual damages.

This article is an operating protocol, not legal advice. Whether a particular condition is ordinary wear and tear, tenant-caused damage, or a reasonable charge depends on the facts. Obtain New York landlord-tenant counsel's advice before making a contested or unusual deduction.

Operating Protocol

1. Preserve the move-in baseline

Use the statutory move-in condition agreement when the tenant requests the offered inspection. Independently, use a consistent internal condition record: date-stamped photographs, a room-by-room checklist, and copies of reports provided to or signed by the tenant. Keep those records with the executed lease. The practical purpose is comparison: a landlord should be able to identify what condition existed at move-in and what changed by vacancy.

2. Offer the statutory pre-vacate process

When the statutory notice duty applies, send the written notice promptly after termination notice. If the tenant requests an inspection, calendar the statutory one-to-two-week window, give the required 48-hour written notice, and provide the post-inspection itemized statement early enough for the tenant to cure before the tenancy ends.

An additional walkthrough can be a useful management practice, but it does not replace the statutory process or commit the landlord to a final deduction decision.

3. Document vacancy before turnover work

Before cleaning, painting, repair, or removal changes the unit, record its condition. Use the same room sequence and, where practical, the same photo angles as the move-in record. Record returned keys and access devices and retain vendor invoices, estimates, rent ledgers, and any lease provision relevant to a claimed charge. These are operational records, not a substitute for counsel's review of the deduction.

4. Make only a statutory, supportable itemization

For each proposed retention, identify the statutory category, the condition or charge, and the amount. Do not treat a condition documented in the move-in agreement, ordinary wear and tear, or prior-tenant damage as a tenant charge. Avoid vague labels or a lump sum. Where the facts are uncertain, return the disputed amount or obtain counsel's advice rather than presenting a legal conclusion as certain.

5. Close the file within 14 days

Calendar the 14-day deadline from actual vacancy, not from the inspection or completion of repairs. Send the statutory itemized statement if any amount is retained and return the balance within the same period. Keep evidence of delivery and the complete deduction file.

Operator Checklist

1. Preserve the signed lease, move-in condition agreement (if any), photographs, and condition records.
2. Determine whether §7-107 or §7-108 applies; consult counsel if coverage is uncertain.
3. Send any required pre-vacate inspection-right notice and calendar the statutory inspection window.
4. If requested, conduct the inspection, give 48-hour written notice, and provide the proposed-deduction statement.
5. Document vacancy before turnover changes the unit.
6. Retain only a reasonable, itemized amount within a statutory category.
7. Deliver the final itemization, if any, and the remaining deposit within 14 days after vacancy.
8. Escalate contested deductions, unusual charges, and coverage questions to New York landlord-tenant counsel.

Botway Operating Rule

Botway is a brokerage, not a property manager. It does not hold deposits, inspect a tenancy, decide deductions, or administer refunds. It may preserve brokerage transaction documents when available; the owner or property manager remains responsible for statutory compliance and for consulting counsel on a specific deduction.

Verified Sources

Fetched and read August 7, 2026:

• New York General Obligations Law §7-107 - deposits for rent-stabilized dwelling units
• New York General Obligations Law §7-108 - deposits for non-rent-stabilized dwelling units

Related FAQ

What can be retained from a New York security deposit?

For a covered tenancy, the statutes list reasonable, itemized costs for unpaid rent, tenant-caused damage beyond ordinary wear and tear, lease-authorized utility charges payable directly to the landlord, and moving and storage of the tenant's belongings. The statutes prohibit retention for ordinary wear and tear or prior-tenant damage. Apply those categories to particular facts only with appropriate professional advice.

What must happen before a tenant moves out?

The statutes require an offered move-in inspection after lease signing and before occupancy. After termination notice, the landlord generally must notify the tenant in writing of the right to request and attend a pre-vacate inspection. A requested inspection has a statutory timing and notice process, and the tenant receives a statement of proposed repairs or cleaning deductions with an opportunity to cure.

What is the deadline after vacancy?

Within 14 days after the tenant vacates, the landlord must provide an itemized statement for any amount retained and return the remaining deposit. Failing to provide both within that period forfeits the right to retain any part of the deposit.

Work With Botway

Botway can preserve available brokerage documents. Deposit custody, inspection notices, deductions, and refunds remain the owner or property manager's responsibility.