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Disclaimer: By
providing answers to frequently asked questions, the staff of the
Rent Guidelines Board attempts to clarify the often complex programs
and regulations governing landlord tenant relations in NYC. However,
the information provided herein does not represent official policies
or opinions of the City of New York or the Rent Guidelines Board nor
should this information be used to substitute for advice of legal
counsel.
Should
I be getting interest on my security deposit?
If the building has six or more units the landlord must pay interest, if any,
on your security deposit. The owner may keep one percent of the deposit amount
each year as an administrative fee. If the building has fewer than six units
and the owner deposits the security in a bank, the interest also belongs to
the tenant, less one percent for administration.
For
more information see the security deposit
section of the NY State Attorney General's Landlord/Tenant Guide on our
site.
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On
what grounds can my landlord withhold the security deposit?
The
security deposit must be returned to you with interest. Generally, the landlord
can make deductions as reimbursement for the reasonable cost of repairs beyond
normal wear and tear (if you have damaged the apartment); or, as reimbursement
for any unpaid rent.
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How
can I get an accounting of my security deposit?
The
law requires the landlord of a building with six or more units to put your
security deposit in a New York bank account earning interest at the prevailing
rate. You should have been informed in writing of the bank's name and address
and the amount of the deposit. For more information on security deposits
see the relevant fact sheet on our site.
You
probably have two options. You can contact the Consumer Frauds and Protection
Bureau of the New York State Attorney General's Office at (212) 416-8000.
This office will attempt to persuade your landlord to follow the law. You
may also be able to file a complaint with the NY State Division of Housing
and Community Renewal. Call them at 718-739-6400.
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My building has a new owner - is he responsible for
our security deposits?
As
the new owner of the building the landlord is responsible for security deposits.
When a building is sold or title is transferred in foreclosure, the landlord
must transfer all security deposits to the new owner within five days, or
return the security deposits to the tenants. Landlords must notify the tenants,
by registered or certified mail, of the name and address of the new owner.
Purchasers of rent stabilized buildings are directly responsible to tenants
for the return of security deposits and interest. This responsibility exists
whether or not the new owner received the security deposits from the former
landlord.
For
more information see the security deposit
section of the NY State Attorney General's Landlord/Tenant Guide on our
site. All leases will remain valid even if the building is transferred through
mortgage foreclosure.
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My
building was sold - how do I collect unpaid interest on my security deposit?
If a building is sold, the old landlord must transfer all security deposits
to the new owner, who is responsible for returning any security deposits and
interest accrued to tenants (minus the annual 1% administrative expense that
is allowed).
If the new landlord refuses to return the interest that is owed, you have some
options: you can contact the Consumer Frauds and Protection Bureau of the NYS
Attorney General's Office at 212-416-8000. You may begin proceedings in the
Small Claims Court (contact via the City's Citizen Service Center by dialing
311), or you may file a complaint with the New York State Division of Housing
and Community Renewal at (718)739-6400.
For
more details, look at DHCR's Security Deposit fact
sheet, the security deposit section of
the NY State Attorney General's Landlord/Tenant Guide and this
guide (in pdf format*) on recovering
rent security deposits and interest in Small Claims Court.
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What
are the time limits for returning security deposits?
The
landlord must return the security deposit, less any lawful deduction, to
the tenant at the end of the lease or within a reasonable time thereafter.
A landlord may use the security deposit: (a) as reimbursement for the reasonable
cost of repairs beyond normal wear and tear, if the tenant damages the apartment;
or (b) as reimbursement for any unpaid rent.
Usually,
a 'reasonable' amount of time is in the neighborhood of 30-60 days; however,
the definition of 'reasonable' is not up to you or us to decide.
Ultimately,
the return of your deposit would be decided by the Attorney General's Office
or a Small Claims Court judge. If you feel you have exhausted attempts to
get your deposit returned through your former landlord, you may wish to contact
the New York State Attorney General's Office at (212) 416-8000.
For
more information on small claims court in New York City, see these two resources here and here as
well as this
guide (in pdf format*) on recovering rent security deposits and interest
in Small Claims Court.
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I
just got my deposit back and it has no interest - is this correct?
The
following information is from the Attorney General's "Tenant's Rights
Guide":
Landlords, regardless of the number of units in the building must treat the
deposits as trust funds belonging to their tenants and they may not co-mingle
deposits with their own money. Landlords of buildings with six or more apartments
must put all security deposits in New York bank accounts earning interest at
the prevailing rate. Each tenant must be informed in writing of the bank's
name and address and the amount of the deposit. Landlords are entitled to annual
administrative expenses of 1% of the deposit. All other interest earned on
the deposits belong to the tenants. Tenants must be given the option of having
this interest paid to them annually, applied to rent, or paid at the end of
the lease term. If the building has fewer than six apartments, a landlord who
voluntarily places the security deposits in an interest bearing account must
also follow these rules.
For
example: A tenant pays a security deposit of $400.00. The landlord places
the deposit in an interest bearing account paying 2.5%. At the end of the
year the account will have earned interest of $10.00. The tenant is entitled
to $6.00 and the land lord may retain $4.00, 1% of the deposit, as an administrative
fee.
When problems arise, tenants should first try to resolve them with the landlord
before taking other action. If a dispute cannot be resolved, tenants may contact
the nearest local office of the Attorney General at (212) 416-8000. Also see this
guide (in pdf format*) on recovering rent security deposits and interest
in Small Claims Court.
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My
landlord said he spent my security deposit - what recourse do I have?
Landlords,
regardless of the number of units in the building, must treat security deposits
as trust funds belonging to their tenants and they may not co-mingle deposits
with their own money. If the building has six or more units the landlord
must put the money in an interest bearing account.
Even
if your landlord has "spent" the deposit, he is still responsible
for returning the money to you (less deductions for any damages or unpaid
rent) at the end of your tenancy.
If
your tenancy is ending, he should repay you. If you are remaining in the
apartment, he has violated the law. You may want to consider withholding
the last month’s rent until you get a full accounting for your deposit.
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I
am suing for the return of my security deposit - can I get double damages
if I win?
Other
than filing a claim in small claims court you could also contact the New
York State Department of Law, headed by the Attorney General. They accept
tenant complaints involving security deposits. After a tenant files a complaint,
the Attorney General will contact the landlord, providing him/her with the
opportunity to reply. The Attorney General's approach is to mediate a resolution
by informing the landlord of the obligations of the law and the Attorney
General's authority to enforce the law. A landlord who has no damage claim
against a former tenant, and who is merely trying to keep the deposit, may
respond to this pressure.
The
success of either of these strategies depends, of course, on the temperament
of the landlord and the amount of documentation you have. Needless to say,
if the landlord claims $900 for actual damages to the apartment, and can
document these damages, and your rent is $900 or less, he/she can rightfully
claim the security deposit.
Unlawfully
withholding a security deposit or collecting excess security may be considered
an unlawful overcharge for rent regulated tenants. If deliberate, aggrieved
tenants may seek treble damages in an overcharge proceeding.
You can reach the Attorney General at 212-416-8000.
Also
see this
guide (in pdf format*) on recovering rent security deposits and interest
in Small Claims Court.
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*Viewing a
pdf document requires the Adobe Reader or an alternate program that
can display PDF files. If you don't already have the Adobe Reader
on your computer, click
here to download it for free. If you are having trouble installing
or using the Adobe Reader, please see their troubleshooting
page.
Disclaimer: By
providing answers to frequently asked questions, the staff of the
Rent Guidelines Board attempts to clarify the often complex programs
and regulations governing landlord tenant relations in NYC. However,
the information provided herein does not represent official policies
or opinions of the City of New York or the Rent Guidelines Board nor
should this information be used to substitute for advice of legal
counsel.
RGB Page Updated 8/10/2012
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