How to get your security deposit back in NYC?
Renting a property in New York City is often a whirlwind experience filled with high expectations, tight spaces, and the occasional headache. One of the more pressing concerns for renters is ensuring they get their security deposit back after moving out. Security deposits, while meant to provide landlords with peace of mind, can become a contentious issue when it comes to refunds. In this guide, we'll walk you through the NYC security deposit return laws, how to get your security deposit back, what deductions landlords can legally make, tips to secure your refund, and what steps to take if things go awry.
Understanding NYC Security Deposit Return Law
New York City has clear laws surrounding security deposits to protect tenants and landlords.
Security Deposit Limit:
Security deposit in NYC is a fixed amount that a landlord can charge and is strictly regulated. Most residential leases have the rule of a security deposit that should not exceed the rent of one month. NYC Security Deposit Return Law has been made to prevent landlords from imposing excessive financial burdens on tenants at the start of their lease.
Handling and Storing deposits
Once the landlords have collected the security deposit, they should handle it with care. The law says that they must deposit the security deposit in the New York State Bank account to earn interest. The account in which you are depositing the security deposit must be separate from your personal funds account. Besides, landlords must convey the information to the tenants about the bank's name and address where the security deposit is held.
Return the Deposit Promptly
If you are a landlord, return the security deposit promptly after the lease is terminated. NYC Security Deposit Return law states that you must return the deposit minus any lawful deductions within 14 days after the tenant moves out. Failing to comply with it may lead to legal action against you and potential penalties as well.
Use of security deposits
The main purpose of the security deposit in NYC is to cover unpaid rent or damages that go beyond normal wear and tear. Landlords cannot use this amount for routine maintenance purposes. If the deductions are made, landlords must give an itemized statement, including the details of damages and associated costs, within 14 days after the tenant vacates the property.
Legal recourse for tenants
The NYC security deposit return law provides legal recourse for tenants, which states that they can take legal action if they believe their security deposit has been wrongfully withheld. New York courts have the right to impose additional penalties on landlords who are found to violate the security deposit laws.
What Can A Landlord Deduct From A Security Deposit In NYC?
Security deposit in NYC must be returned in full as per The Housing Stability and Tenant Protection Act of 2019, except under certain circumstances. The deposit includes non-payment of rent, damages that go beyond normal wear and tear, and failure to pay utility charges.
Normal wear and tear include faded countertops, faded paint, minor scuff marks on walls, etc. Keep in mind that as long as the home/place is free from excessive damage by the tenant, the landlord cannot use the security deposit. So, it is said to do a thorough walkthrough of the property to inspect for any damages before signing any lease.
To avoid disputes, always ensure there's clear documentation of the property's condition both before move-in and after move-out.
Tips on Getting Your Security Deposit Back
Securing the return of your security deposit requires careful planning and execution. Here are actionable tips on how to get your security deposit back -
Inspect your new property for any damage
Inspect your property for any kind of pre-existing damage after signing the lease. Test the HVAC system and water. Take pictures of any issue that you come across and send these to the landlord so that it's on record.
Give a Proper Notice 1 month before
In New York, it is required for the residents to give 1-month prior notice of their intended move-out date. Give the notice in writing and send it through certified mail. Additionally, keep a copy for your records. This step demonstrates responsibility and avoids misunderstandings.
Hire professional movers
Hire professional movers to avoid any kind of damage to your old and new property on a moving day. Professional smart movers have the expertise to handle your belongings with care and without any damage. They even provide you with a Certificate of Insurance (COI), which is a must-have document in New York to cover any kind of damage at no cost. You might be thinking about not hiring professional movers and not getting the COI. But think calmly - an average COI can protect you from saving a huge amount of money plus a huge headache in case of any damage to the property.
Keep a check on your stuff before handing over the keys
Make sure you have cleared everything from your home, and nothing is left behind. If you have some big items like furniture that you want to donate, let the Department of Sanitation help you with them. After cleaning your home thoroughly and ensuring nothing is left behind, you can hand over the keys to the landlord.
What to do If the Landlord Won't Return the Deposit?
If your landlord fails to pay the security deposit return in NYC within the 14-day window or withholds it without justification, follow these steps -
Sending a demand letter
If your landlord is adamant about the security deposit return, send him a demand letter requesting the same. The demand letter should list the main facts, the things you want, and legal rights.
Contact your landlord
If there is something in the landlord deductions that you are not satisfied with, or you feel that the landlord has broken the NYC security deposit return law, try negotiating with him first and see if you both can come to an agreement. If you come to an agreement, get everything in writing and signed by both of you to make it a legal contract.
Go to court if everything fails
If both parties are unable to come to an argument, it's time to file a lawsuit against your landlord in small claims court. This is usually a cost-friendly and tenant-friendly process that doesn't need a lawyer.
Conclusion
The process of how to get security deposit back in NYC doesn't have to be a stressful experience. By understanding the laws, documenting your tenancy thoroughly, and following best practices during move-out, you can significantly increase your chances of a full refund. And if your landlord isn't cooperative, NYC security deposit return laws have your back.
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