How to Get Your Apartment Deposit Back in Full When You Move Out: A Guide for New York City Renters

The end of your lease is approaching and you start packing boxes, taking down paintings and other decor from the walls. TheCity explains all the nuances associated with the return of the deposit.

What guarantee do you have that you'll get your deposit back? How much of this money can your landlord keep? What if for some reason you can't get it back?

What to do with the deposit

Whether you live in a rent-stabilized or market-rate apartment, your deposit cannot exceed one month's rent thanks to Housing Stability and Tenant Protection Act from 2019. If you paid more than this amount for an apartment with a stabilized rental payment, then you can file a complaint with the state using this form.

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The landlord must return the full amount of the deposit if the tenant has complied with the terms of the lease and left the apartment in the same condition it was in when they moved in, except for wear and tear.

The landlord has 14 days after you move out to make a detailed list of what they are deducting from the deposit to cover the cost of repairing the damage. If the landlord fails to do so within the two-week period, they must return the full amount of the deposit.

"If the 14 days are up, the deposit is returned to the tenants," said Adam Litman Bailey, an attorney who primarily represents large landlords. "If the landlord hasn't written a letter within 14 days complaining about problems in the apartment, that deposit is returned."

What is normal wear and tear and how does it relate to damage?

Bailey said a landlord cannot charge for repainting or cleaning "unless it's beyond a reasonable amount of dirt."

“Wear and tear is something that happens naturally over time,” said Archana Dittakavi, deputy director of the Tenant Rights Coalition of Legal Services NYC. For example, it could be faded or scuffed paint or a floor that needs refinishing.

Small nail holes in the walls (such as from picture hooks) are where problems can arise.

For tenants It is recommended to try to seal the holes as best as possible.

"A gaping hole or anything that would prevent a landlord from renting it to a subsequent tenant would be outside the scope of wear and tear," said Leah Goodridge, a tenants' rights attorney. "However, the property cannot be spotlessly clean and spotless."

As a tenant, you have the right to request an inspection of the apartment before you move out, and to be present during the inspection. This way, the landlord can point out anything that he is not happy with, after which you will have the opportunity to correct the problems, and therefore get your full deposit back.

"If the landlord decides what a reasonable repair fee is, tenants may be worse off than if they had done the repairs themselves," Dittakavi said.

Requesting an inspection soon after moving in is also helpful. It will help identify any damage that was there before you moved in so you are not held responsible for it.

What you need to do to have the best chance of getting your full deposit back

As lawyers advise - document, document, document. Collecting evidence will reduce the number of disputes in the future. If you do end up in court, a document can help prove your claims.

When you move in, take photos and videos of the space. This will show that everything from the windows to the sinks is in good working order. Don’t forget to include proof of the date. You can show a daily newspaper or a digital display of the date on the video.

Goodridge advises putting everything in writing: requests for repairs during the tenancy, the date you actually vacated the premises, even the fact that you moved out and returned the keys.

And drive out carefully.

"Make sure you remove all your stuff or you'll be charged a removal fee," Bailey said. "Removing stuff from an apartment is a huge expense. It'll eat into your deposit."

Is it possible to not pay the last month's rent since the deposit is enough to cover it?

That's not really what a deposit is for. It's risky to treat it like a last rent check. But in reality, experts say, that's how money is used between tenants and landlords who don't trust each other.

“The concept of the deposit is to compensate the landlord for any damage to the apartment or unpaid fees,” Dittakavi explained. “If the tenant moves out without paying rent, the landlord can use it to recoup any unpaid rent.”

Ronald Languedoc, a partner at Himmelstein McConnell Gribben & Joseph LLP, represents tenants. He said he has seen situations where people don’t trust their landlord to return their deposit, or know their landlord has a reputation for not returning it. So they decide not to pay their last month’s rent.

"If you don't pay your last month's rent and there's no damage to the apartment beyond normal wear and tear, the landlord will actually just apply the deposit to your last month's rent. It's a level playing field," Languedoc agreed. "It's unlikely that you'll be sued. But it's at your own risk."

What happens if the landlord does not return the deposit on time or the tenant does not agree to take into account the damages

If a landlord charges more than one month's rent for a deposit or fails to return it, tenants can file a complaint with the state Attorney General's Office.

Lawyers can act as intermediaries between the landlord and tenant in this case to get the money back. They can file a lawsuit if the landlord consistently fails to comply with the deposit rules for several tenants.

Another option is to go to small claims court and file a lawsuit against your landlord. You can sue for up to $10. Note that there is a filing fee of $000 or $15, depending on the amount of the claim.

While a large landlord may be represented in court by a small claims attorney, tenants do not need one.

"Of course, it's scary to go to court on your own, but small claims court is originally designed for people who don't have lawyers," Dittakavi emphasized.

"But be careful: If you go the small claims route, there's no telling how long it will take to resolve your case. And be sure to prepare.

"Gather all the paperwork - your receipts, documentation of the condition of the apartment, records of any communications during the lease, photographs, etc.," Languedoc advised.

Lawyers say it's an obscure rule and rarely enforced, but landlords of buildings with at least six apartments must keep a deposit in an interest-bearing bank account. Tenants are entitled to the interest earned on the deposit minus 1% of its value, which the landlord can use for administrative purposes.

In theory, you are entitled to receive this interest each year. But usually the interest rates are so low that it is unlikely that the tenant will receive anything significant. However, you can ask your landlord where he keeps the deposit and what the interest rate on the account is.