LANDLORD & TENANT LAW - SECURITY DEPOSIT RETURN

A recent consultation revealed that a several thousand dollar security deposit was never returned to the tenant, although the landlord advised the tenant that it would be returned as there was no damage to the premises when tenant timely vacated. Remedy? A small claims action and/or contact the Attorney General and file a complaint at 212-416-8000 or 212-416-8345. Usually, holding off on the last month's rent and have the landlord apply the security deposit has a potential disadvantage: you cannot safely use that landlord as a credit reference when trying to rent again. As to the limited remedies available to tenants, read this from tenant.net:

"The laws affecting security deposits in New York State are not protective enough. It is far too simple for landlords to abuse them without penalty. Many landlords, once they collect a security deposit, treat it as their own money, never to be returned to the tenant unless they are forced to do so. The "statutory trust" character of security deposits is thus flouted.

Reforms that would put some "teeth" into the law, such as triple damages for unwarranted withholding of deposits, are needed. Until reforms are enacted, the burden will continue to be on tenants to demand that there be strict compliance with the existing law."