If you’re trying to recover your security deposit from a landlord who’s keeping the cash, you’re not alone.
Since the start of 2023, New Yorkers have filed nearly 5,000 separate complaints with state Attorney General Letitia James accusing their landlords of illegally keeping their security deposits, an office spokesperson told Gothamist.
About two-thirds of the 4,898 complaints have come from renters within the five boroughs, they add. But tenant advocates say the problem is likely far more widespread than the state data shows.
“People are paying 13 months rent for 12 months of living somewhere and this just happens over and over and over again,” said Sateesh Nori, a law professor who previously led the organization JustFix, which builds data tools to help tenants understand their rights.
While many landlords return the security deposit to tenants without any problems, an untold number of others keep the cash.
If you want your money back, you have clear legal rights to reclaim it, but you also face a tedious, time-consuming legal process.
Here’s what New Yorkers need to know about getting their security deposit back.
What are the rules around security deposits?
A 2019 state law caps security deposit amounts at the equivalent of one month’s rent. It’s an upfront cost that, combined with broker’s fees and first month’s rent, can add up to nearly $13,000 for the average renter in New York City, according to an analysis by the listings site StreetEasy.
The landlord holds the money to cover needed repairs, and to give you more incentive to take care of the apartment. Under state law, the owner must keep the check in an interest-bearing account. Tenants have a right to the interest, minus 1% for landlord administrative fees.
Not everyone is entitled to get the money back, however. Landlords are allowed to hold on to security deposits to cover damage beyond normal “wear and tear” — like large holes in the walls, broken windows or damage to the flooring. But the deposit isn’t meant to cover superficial issues, like chipped paint or small nail holes.
The crucial two weeks
After you move out, the landlord has 14 days to return your deposit or submit an itemized list of expenses that justify keeping all, or a portion, of the money. If they miss the two-week deadline, you’re entitled to the full amount.
“Wait ’til day 15, and tell the landlord, ‘Here’s the information for sending my security deposit,” advised Justin La Mort, a managing attorney at the organization Mobilization for Justice.
Take photos
You should take photos of the empty apartment as soon as you move in to compare with the conditions on the day you move out, La Mort said. If you find a problem, you should notify the landlord and get an acknowledgment — in writing — so you don’t get charged for it later on, he said.
“The best thing is to try to get pictures and videos of the whole place when you move in and when you’re getting ready to leave,” La Mort said. “And try to arrange an exit visit with a representative of the landlord so they can sign off.”
Case closed? Not always.
Maya Wagoner, 32, said she and her fiancé moved out of their Crown Heights apartment earlier this year when they asked the landlord to check out the unit and flag any problems.
Wagoner said the landlord pointed out a few things to fix or clean, which they did. But then the landlord didn’t return the deposit.
Wagoner said she contacted him 12 days after moving out to ask about the money. She said he responded with a quote from a contractor amounting to $1,400 to fill nail holes, remove a bracket from a wall and cover the backyard with fresh mulch.
“I messaged back and said, ‘Why didn’t you say this during the walk-through?’” Wagoner said. “Nails are regular wear and tear.”
After some back and forth, the landlord agreed to reduce the fee by about $1,000, but still hasn’t returned the rest of the money a month later, she said.
“Maybe he knows we moved out of state,” she said. “He must know it’s ridiculous to charge that much.”
Renters in Wagoner’s position have a few choices.
Contact the attorney general
If you think you’re entitled to get your security deposit back, you can file a complaint with the state attorney general. The form is available here.
Officials from the AG’s office will then contact the landlord and let them know they may be violating the law. They offer mediation services to help you reclaim the money without taking further legal action.
The attorney general’s office has helped tenants reclaim just under $2.1 million since the start of 2023, a spokesperson said.
Sue for the money
You also have the right to sue landlords in small claims court for amounts up to $10,000 in the borough you were living in.
Notably, the attorney general’s office won’t help you if you pursue the money in court.
The courts impose a $20 filing fee, but you’re allowed to sue for the initial deposit plus damages of up to two times that amount — a total of $7,500 for a $2,500 deposit, for example.
If the landlord didn’t return the money or an itemized list of expenses within the 14-day window, you will likely win in court, La Mort said
But, he added, it can be a yearslong process that may warrant a cost-benefit analysis. For some tenants, the missing money could be a major sum they need to recover to pay for their housing. For others, it’s a substantial amount but not quite enough to merit a months or even yearslong court process to get it back.
“It’s one of those things where you have to do the math and think, is this worth me taking off work to go to small claims court?” La Mort said. “It’s going to be months until the first court date and it’s a pain. I know people who are professionals who just don’t want to deal with it.”
Nori said that arrangement shows how landlords have the upper hand when it comes to recovering security deposits.
“It’s just a really tricky situation for someone to navigate when the other side’s holding all the money,” he said.
Both attorneys encourage tenants to document everything, and to come to court armed with proof of payment and apartment conditions, and any correspondence with the landlord.
If you do win your small claims case, the landlord is obligated to return the money, plus interest or damages requested.
If the landlord ignores the court order, you can hire a city marshal to seize the money — for an additional fee.
What about landlords’ rights?
Landlords are often justified in keeping the security deposit if a tenant trashed the apartment — they just have to inform the tenant in writing within 14 days.
Bronx landlord Jack Ndreu said tenants in his three buildings often skip out on the last month’s rent before they move out. He said he could sue for the missing rent money but thinks it’s an uphill battle.
“For me to chase people, it isn’t financially feasible,” Ndreu said.
Ndreu, an operations manager at a window-washing company, said one tenant recently opened a boarded-up garbage chute and began tossing in trash that rotted in the basement. He estimated that cleaning out the old chute and repairing the hole with new drywall cost about $800, in addition to fixing other problems totaling thousands of dollars.
“The damage she did, one month’s security doesn’t even cover it,” he said.