Do I Have to Return My Roommate's Security Deposit in New York After He Broke Our No-Sublet Agreement?

Attorney Answer

Under New York law, you generally cannot keep a roommate's full security deposit just because he broke your no-sublet agreement. You can only keep the portion that covers actual unpaid rent or real damage.

New York's security deposit law, General Obligations Law § 7-108, limits what a deposit can be used for: unpaid rent, damage beyond normal wear and tear, and certain other actual costs, such as unpaid utility charges. New York law also treats the deposit as still belonging to the person who paid it until a proper deduction is made. Simply breaching a lease term, like your no-subletting clause, is not by itself one of the allowed reasons to keep a deposit if there was no real financial loss connected to it. Courts that handle roommate and room-rental disputes tend to apply these same basic principles even when the arrangement is more informal than a full lease, since the deposit still works the same way: as security against real losses, not as a penalty for breaking a rule.

That said, if the person staying there caused any damage to the room or common areas, or if your roommate owes unpaid rent for that period, you can deduct those actual, documented costs from the deposit before returning the rest.

What to do next:

1. Add up any real, documented costs: unpaid rent for that month, and the cost to repair any damage beyond normal wear and tear. 2. If those costs are less than the deposit, return the difference along with a written explanation of what you deducted and why. 3. Keep copies of the signed agreement, your messages about the sublease violation, and any receipts or repair estimates. 4. If you and your roommate cannot agree, either of you can bring the dispute to small claims court, where a judge can decide the amount owed without either side needing a lawyer.

Breaking the no-sublet clause was a real violation of your agreement. You are not entirely without options: you may be able to seek compensation separately for any documented loss that violation caused. But withholding the full deposit purely as a consequence for the breach itself, with no connected financial loss, is the part of your plan that New York law likely will not support if he challenges it.

This is general legal information, not legal advice. A local New York attorney experienced in landlord-tenant or housing matters can review your specific agreement and advise you on how much, if any, you can lawfully keep.