Security deposits are a common source of disputes between landlords and tenants in New York. Whether you are a landlord seeking to protect your property or a tenant trying to recover your deposit, understanding the role of security deposits in landlord-tenant relationships is crucial.
What Is a Security Deposit?
A security deposit is a sum of money paid by the tenant at the start of a lease, intended to protect the landlord against potential damages or unpaid rent. In New York, landlords are legally required to hold these deposits in a trust account, separate from their personal finances, and may only use them under specific circumstances. This deposit serves as a safety net for landlords, but it must also be handled responsibly and fairly, as tenants have the right to get their money back when they move out if all lease conditions have been met.
Common Reasons for Security Deposit Disputes
Security deposit disputes can arise for several reasons, often stemming from misunderstandings about what the deposit can be used for:
- Property damage–Landlords have the right to use the security deposit to cover damages beyond normal wear and tear. However, the definition of “normal wear and tear” can be subjective, leading to disagreements.
- Unpaid rent–If a tenant fails to pay rent, the landlord may deduct the unpaid amount from the security deposit. This can lead to disputes if tenants believe the deductions are unfair or improperly calculated.
- Improper withholding–Tenants are entitled to a timely return of their security deposit after moving out, minus any legitimate deductions. A dispute is likely if landlords delay or withhold deposits without proper justification.
Landlords’ Responsibilities Regarding Security Deposits
New York law sets out clear rules landlords must follow when handling security deposits. Landlords are required to provide tenants with a written receipt for the deposit and must place it in a trust account in a New York bank. For buildings with six or more units, landlords must also pay interest on the deposit, with the tenant entitled to receive this interest (minus a 1% administrative fee). These rules protect tenants and ensure their deposits are handled properly.
When a tenancy ends, landlords have 14 days to return the security deposit along with an itemized statement of any deductions made. Failure to comply with these regulations can lead to legal penalties and give tenants grounds to pursue legal action. At Kohan Law Group, we help landlords comply with these requirements to avoid potential disputes and litigation.
Tenants’ Rights to Their Security Deposits
Tenants have specific rights regarding the return of their security deposits. If a landlord makes deductions for damages, those deductions must be reasonable and detailed in writing. Normal wear and tear, such as minor scuff marks or faded paint, cannot be charged to the tenant. If you are a tenant and believe that your landlord is improperly withholding your security deposit, you may have the right to take legal action to recover the funds.
Our team at Kohan Law Group is dedicated to ensuring tenants receive what they are entitled to. We help tenants understand their rights, negotiate disputes with landlords, and, if necessary, represent them in court to recover improperly withheld deposits. Your security deposit is your money, and we are committed to helping you fight for it.
A NYC Attorney for Resolving Security Deposit Disputes
At Kohan Law Group, we understand that disputes over security deposits can be stressful for both landlords and tenants. Our goal is to resolve these disputes efficiently and fairly. We start by evaluating the specific circumstances of the case, including lease terms, property conditions, and documentation provided by both parties. We often help clients reach a satisfactory resolution without litigation by fostering open communication and attempting negotiation.
However, our experienced attorneys are ready to advocate for your rights when litigation is necessary. Whether you are a landlord seeking to defend your position or a tenant fighting for your deposit, we provide clear guidance and strong representation throughout the legal process.
Contact Kohan Law Group for Assistance
Security deposit disputes can be challenging, but you don’t have to face them alone. At Kohan Law Group, we represent both landlords and tenants across New York in all types of landlord-tenant disputes, including those involving security deposits. If you are involved in a dispute or want to understand your rights and responsibilities better, contact us today to schedule a consultation.