NEW RULES - RETURN OF SECURITY DEPOSIT

The devil is in the detail.

Asquith v. REDEVELOP ALBANY, LLC, 2019 NY Slip Op 29295 - NY: City Court September 20 2019:

"With respect to the subject security deposit, the Court finds that defendant did not comply with the legal requirement that a landlord provide to a tenant who vacates an apartment a written statement itemizing the reasons for retaining all or a portion of the tenant's security deposit. General Obligations Law Section 7-108(1-e), which became effective on July 14, 2019, provides that:

"Within fourteen days after the tenant has vacated the premises, the landlord shall provide the tenant with an itemized statement indicating the basis for the amount of the deposit retained, if any, and shall return any remaining portion of the deposit to the tenant. If a landlord fails to provide the tenant with the statement and deposit within fourteen days, the landlord shall forfeit any right to retain any portion of the deposit."

It is undisputed that no such required itemized statement was given to plaintiff. The Court brought to the attention of Ms. Kelly during trial that the recently enacted law with respect to security deposits requires that written notification be given to a tenant within 14 days after the tenant has vacated the premises. When Empire did the move out inspection of the subject premises on August 5, 2019 (after the applicable statutory provision cited above took effect), an itemized statement was required to be provided to plaintiff by August 19, 2019, which was not done. Accordingly, pursuant to the General Obligations Law, defendant has forfeited the right to retain any portion of plaintiff's security deposit. Plaintiff's claim for the return of her $3525 security deposit is therefore granted."