New York Security Deposit
New York Security Deposits

Tenant Screening | Join RentLaw.com

 
In Rentlaw.com

State Laws

Normal Wear Tear
EVICTIONS
Security Deposit
Breaking a Lease

Tenant Screening
Landlord Tenant Forms
Landlord Tenant Statutes
Mold Guide
Section 8
Housing Vouchers

RENTERS INSURANCE
HUD - Housing & Urban Development
Rent Collection
LATE RENT FEES
Credit Reports
Small Claims Courts
Sublet
Rent Control
Landlord Books
Lead Paint Guide
Military Lease Clause
Foreclosures
Bankruptcy
Credit Center

Free Legal Forms
Apartment Ratings
Moving Guides 
Apartment Search
Rent or Buy
Home Inspection
Tax Deductions
Lawyer Search
Home Loans - Bad Credit
Commercial Real Estate
Property Management

Commercial Introduction

Commercial Real Estate Terms

1031 Exchange

Limited Liability Co
Real Estate Trusts
Real Estate School
Contact Rentlaw.com
RentLaw on Linkedin

New York SECURITY DEPOSITS

Virtually all New York leases require tenants to give their landlords a security deposit. The security deposit in New York is usually one month's rent. 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.

New York 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 in New York 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 belongs 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 bank account must also follow these rules. For example: A tenant pays a security deposit of $400. The landlord places the deposit in an interest bearing bank 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 landlord may retain $4.00, 1% of the deposit, as an administrative fee. All figures subject to change.

If the building is sold, 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 any interest. This responsibility exists whether or not the new owner received the security deposits from the former landlord.

Purchasers of rent-controlled buildings or buildings containing six or more apartments where tenants have written leases are directly responsible to tenants for the return of security deposits and interest in cases where the purchaser has "actual knowledge" of the security deposits. The law defines specifically when a new owner is deemed to have "actual knowledge" of the security deposits. Typically, when a building is sold, the attorneys, buyers and sellers will complete paperwork stating the amount of security deposit held by each tenant. Often, the tenant will be required to sign a statement verifying the amount of the security deposit.

When problems arise, tenants should first try to resolve them with the landlord before taking other action. 

Have a Tenant Credit Application ?
Use our Popular Tenant Screening Tool For Small Landlords

RentLaw.com Tenant Screening Service

Deposits

Renters Insurance
Apartment Condo Home
Details
 


 

RENTLAW.com

TENANT SCREEENING

GET YOUR TENANT CREDIT REPORTS
 

FREE SETUP
No Inspection

Criminal & Credit Report, Sex Offender and more

Tenant Screening RentLaw.com


ADVERTISE HERE RentLaw.com 732-539-2914