Security Deposit

“What are my rights being rent-stabilized in regards to my security deposit?”

The tenant’s security deposit is money paid to the building owner to keep in an account for the tenant.  That money is meant to compensate for the cost of any repairs to the apartment, when the tenant moves out, for which the tenant is responsible.  By law security deposits at most can be equivalent to one month’s rent.  The only exception being that if the landlord charged the tenant two months security deposit when the apartment initially came under rent stabilization, then the tenants are obligated to maintain that amount of deposit for the length of their tenancy.  However, if the tenant ever vacates the apartment, the subsequent tenant is not obligated at all to have the security deposit equal to greater than one month’s rent. 

When the tenant is given a renewal lease for a higher rent and chooses to sign it, the landlord can collect an amount of additional security deposit equal to the rent increase so as to keep the deposit equal to the present legal rent.

Neither tenant nor landlord should use the security deposit as the final month’s rent on the apartment.  Besides normal wear and tear, if the tenant leaves the apartment in the same state as it was when they first moved in and adhered to all stipulations in their lease, the owner is obligated to return the security deposit in full to the tenant when they vacate the premises.  However, if there is damage to the apartment which is the tenant’s fault, the landlord is allowed to apply some or the entire security deposit to the cost of repair(s). The landlord must provide the tenant with receipts from the cost of the repairs.  If the tenant and landlord are in disagreement over the amount of security deposit returned to the tenant after moving out, a formal complaint can be made through the Consumer Frauds and Protection Bureau of the New York State Attorney General’s Office.

For information call Central Astoria LDC at 718-204-1056.