Banking and interest
Deposits remain tenant trust money. Unit count affects interest-account handling; written bank information and a clean principal-and-interest ledger make later reconciliation clearer.
New York Landlord Security Deposit Checklist
Organize the deposit lifecycle - from receipt and banking through inspection, interest, deductions, the return deadline, delivery, and final records.
Part of the Landlord Operations Hub
Local-first recordsShared financial enginesOfficial-source rulesNo email gate
Preparing your private landlord checklist…
Keep principal, interest, timing, and evidence distinct.
Inspection and evidence
Move-in documentation helps identify pre-existing conditions. A pre-move-out inspection organizes proposed work and cure opportunities, but does not itself establish a deduction.
Surrender and return
The actual vacate or surrender date drives the supported deadline reference. Missing that timing can materially affect retention, so the checklist keeps the warning visible even after a letter is generated.
From deposit receipt to archived file.
- 1
Enter the property and tenancy
Record the dwelling, unit count, tenancy pathway, rent, and deposit facts.
- 2
Record the deposit and bank information
Document receipt, trust treatment, bank details, and tenant notice.
- 3
Track interest and move-in documentation
Enter the actual bank rate and retain the move-in condition record.
- 4
Manage termination and inspection dates
Track notice, the requested inspection, timing, and opportunity to cure.
- 5
Record deductions and evidence
Enter possible deductions as review items with supporting references.
- 6
Calculate the refund
Reconcile principal, estimated tenant interest, and included deductions.
- 7
Generate the itemized statement
Review the shared return-letter draft without a compliance conclusion.
- 8
Record payment and delivery
Keep delivery method, date, tracking, and proof.
- 9
Archive the file
Retain the complete operational record and unresolved issues.
New York security-deposit operations.
Rule set last verified July 14, 2026. Review the Botway renter inspection and deposit guide and the official sources shown in the checklist.
How much security deposit can a New York landlord collect?
For supported pathways, the encoded standard cap is 1 month of rent. Exceptions and unsupported housing require review.
Can a landlord collect both last month’s rent and a security deposit?
The checklist flags this for review because an advance may be treated as part of the statutory limit depending on the applicable arrangement.
Must a security deposit be kept in a separate account?
The rules panel treats the deposit as tenant trust money that must not be commingled with personal funds.
Which New York buildings must use an interest-bearing account?
The encoded general threshold is property containing 6 or more family dwelling units.
Can a landlord keep 1% of the security deposit?
The statute describes an annual administrative amount equivalent to 1% of deposited security when held in an interest-bearing account, limited here by interest actually earned.
Does the 1% administrative amount come from principal?
No. The shared worksheet never reduces deposit principal for the administrative allowance.
What happens when the account earns less than 1%?
The estimate caps the administrative amount at gross interest actually earned, so tenant interest never becomes negative.
Must the tenant receive the bank name and address?
The central rule record includes written bank-name, address, and deposit information when the money is placed with a banking organization.
Must interest be paid every year?
The statute describes the remaining bank interest as tenant money that is held in trust or annually paid; tenancy-specific handling should be reviewed.
Does a landlord have to offer a move-in inspection?
The supported pathways encode a post-signing, pre-occupancy inspection opportunity. The checklist does not determine coverage.
What should be recorded at move-in?
Keep the inspection offer, request, date, written condition agreement, existing defects, photographs, and delivery record.
Must the landlord offer a move-out inspection?
Supported pathways include written notice of the right to request one after termination notice, subject to the encoded short-notice caution.
When should the pre-move-out inspection occur?
The shared inspection engine calculates the statutory reference window from the tenancy end date.
How much inspection notice is required?
The shared engine evaluates the exact written-notice interval from the central inspection rules.
Must the tenant be allowed to attend?
The supported statutes describe the tenant’s right to be present at a requested inspection.
Does the tenant get an opportunity to repair or clean?
Supported pathways describe a proposed repair or cleaning statement and an opportunity to cure before tenancy ends.
What may be deducted from a security deposit?
The worksheet offers statutory categories as possible review items; it never determines that an entry is lawful.
What is ordinary wear and tear?
It is fact-specific. The tool flags the concern but does not classify a condition.
Can routine cleaning be deducted?
The tool does not decide. Add the factual condition, amount, lease or inspection reference, and evidence for review.
Does the landlord need receipts?
The tool suggests invoices, receipts, estimates, photographs, ledgers, and other evidence, but does not certify sufficiency.
When must the deposit be returned?
Supported pathways use 14 calendar days after the entered actual vacate or surrender date as the reference.
What happens if the itemized statement is late?
The supported statutes state that missing the applicable statement-and-return period may forfeit retention rights. The tool warns but gives no individualized conclusion.
Do the same rules apply to rent-stabilized apartments?
Rent-stabilized units use the separate § 7-107 pathway encoded in the shared rules.
Do the rules apply to rent-controlled apartments?
The tool marks rent-controlled housing as requiring review instead of borrowing another pathway.
What happens to deposits when a property is sold?
The transfer workflow records the successor, transferred funds, tenant notice, and delivery evidence under the centrally cited transfer statute.
Does completing this checklist prove compliance?
No. Task completion is operational progress only.
Can the checklist be used without providing an email?
Yes. Local saving, calculations, preview, printing, and export do not require contact information.
Where is checklist information stored?
Working records remain in this browser on this device unless you explicitly request an emailed PDF.
Does Botway provide legal advice?
No. Botway provides educational and organizational tools, not legal conclusions.
Can the checklist generate the return letter?
It generates a user-review draft from the shared reconciliation. It is not attorney-approved and does not cure a missed deadline.
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What this covers
- What it answers
- Organize New York deposit timing, deductions, interest records, and a reviewable return letter.
- Who it is for
- Landlords and owners of rental property.
- What it does not cover
- Legal, tax, and accounting advice. The result is an estimate for illustration.