When your rental lease is ending and you decide to move to a new residence, having your current security deposit returned to you is vital. Most people in New York need this money to cover the expenses related to a new rental unit.
For example, if you use most of your available funds to cover the first month’s rent and the deposit on a new home, your current security deposit can help you offset the impact of these expenses.
Getting your deposit back is like breaking even, meaning that you do not suffer any significant financial loss when you rent a new home. As long as you have cared for your home, caused no damage and do not owe any rent, you are entitled to receive the full amount of your deposit. However, many landlord-tenant disputes arise because the property owner failed to return the tenant’s deposit in a lawful manner.
We want you to be aware of New York’s security deposit laws. This can be of great benefit if you believe your landlord has illegally withheld your deposit. It will also help you identify whether you have grounds to seek legal action for your landlord-tenant dispute.
For example, most New Yorkers do not know that they may be able to receive more money from the landlord than they paid as a security deposit. If the building in which you currently live holds six or more tenants, your landlord is required to hold all deposits in an interest bearing account.
This means that you are entitled to most of the interest your deposit has accumulated. Your landlord is only entitled to one percent of this interest as an administrative fee.
As you can see, it is wise to know all of your rights as a tenant. This can help you successfully navigate any landlord-tenant disputes you may experience in the future. Please consider visiting us online or reaching out to our lawyers if you need additional or more personalized information.