This guide covers everything New York tenants need to know about security deposits, including legal limits and steps to ensure you receive your deposit back post-move-out. Learn effective strategies to handle deposit disputes, including a security deposit demand letter template.
You’ve rallied your strongest friends, treated them to pizza, and finally moved all of your belongings out of your apartment. But are you really done? Not quite.
For many tenants in New York, recovering their security deposit requires a herculean effort.
This comprehensive guide will help you understand the purpose of a security deposit, your rights as a tenant, and the steps you can take to ensure a smooth move-out process.
A security deposit is a sum of money that a tenant pays to a landlord before moving into an apartment.
The security deposit serves as a form of financial protection for the landlord if the tenant fails to fulfill their obligations under the rental agreement. These obligations may include paying rent, covering the costs of repairs for damages caused to the property, and cleaning the unit when moving out.
If your apartment complex contains six or more units, your landlord is required to deposit your security deposit into a savings account and inform you in writing of the bank’s name and address. What’s more, the landlord is allowed to retain one percent of the account’s yearly balance as an administrative fee, but the remaining interest accrued must be returned to you when you move out.
For buildings with fewer than six apartments, your landlord must still place the security deposit in a separate bank account, but this account is not required to be an interest-bearing account.
Enjuris tip:In addition to capping the amount a landlord can require for a security deposit, New York law prohibits landlords from increasing security deposits to retaliate against tenants.
Once your lease ends and you move out, your landlord is required to return your security deposit minus any deductions for unpaid rent or damage to your apartment beyond normal wear and tear.
New York law does not explicitly define “normal wear and tear,” but the term typically refers to deterioration that occurs from the intended use of the rental unit and without negligence, misuse, or abuse of the premises.
Here are some real-life examples from New York cases that distinguish between damages considered ordinary wear and tear and those that exceed normal wear and tear:
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