return of security deposit - breach of contract by landlord?

[abracadabra]

Hello, I am new to the forum. Sorry to add another post regarding security deposits, I am sure there are already a litany of questions on the topic.

I leased an apartment in NYC. Before the end of the lease, my roommates and I notified the landlord that we would not be renewing. Although 3 of the 4 roommates moved out prior to the lease termination, one remained for a week with verbal consent from the management company, as he was going to rent another apartment a few buildings down the street from the same company and they weren't able to have the other apartment ready on time. The apartment was left clean and there was no damage beyond normal wear and tear.

June 30th was the 60th day since the end of the lease, and the lease document specifies that the security deposit will be returned within 60 days of the termination of the lease. At the end of the lease, we provided our management company with a notarized and signed document requesting the return of our deposits to each of our new addresses as provided therein.

My roommates and I have called our landlord's office several times requesting the return of the deposit leading up to the end of the 60 days demanding the return of our deposits. On the 30th, I sent a letter to my landlord via certified mail making demand of return of my security deposit within 7 days of the receipt of the letter. I said that if I didn't receive it within 7 days I would sue for return of the deposit and treble damages. I am hopeful that they will return it before this period expires, but I want to be prepared if they do not comply.

A few questions I have are:

• I am aware that NYS law states that security deposits must be returned within a 'reasonable' time. Am I correct in assuming that my lease provision for return of the deposit within 60 days overrides the provision for return of deposit within a 'reasonable' time?

• If the landlord does not return my security deposit within this time period, am I entitled to damages?

• If the answer to above is yes, if the landlord returns my security deposit outside of the 7 day window, am I entitled to damages?

Thank you for your feedback!

 

[mightymoose]

I would say that 60 days was more than reasonable and your deposit should have been returned.
In many jurisdictions you can seek double or even triple the amount of your deposit if you sue the landlord for failure to return the deposit on time (or to provide an itemized list explaining where the money went).
If the 60 days expired on June 30 then you are well beyond the point where you can sue and ask to recover damages... a judge will decide what you are entitled to, if anything.

 

[Gail_in_Georgia]

1. No, you are incorrect in assuming this. A states statutes overrides what a contract might say. For example, in a state where the status of the security deposit must be sent to the former tenant within, say, 30 days of vacating the rental, a lease might say management has 60 days. That doesn't make it legal. It's still 30 days.

2. What damages are you claiming?

Gail

 

[Gail_in_Georgia]

1. No, you are incorrect in assuming this. A states statutes overrides what a contract might say. For example, in a state where the status of the security deposit must be sent to the former tenant within, say, 30 days of vacating the rental, a lease might say management has 60 days. That doesn't make it legal. It's still 30 days.

2. What damages are you claiming?

Gail

 

[abracadabra]

I called the attorney general's office and they said I should have my security deposit back within 30 days. As far as my damages Gail, I think they have violated the terms of our agreement. The time that has passed is beyond reasonable, and they have made no attempt to contact me despite having my address on file. When I violate the terms of the agreement, they have rights, so why should I as the tenant not have rights when the landlord fails to uphold his side of the agreement? If I have not received the letter within 7 days, do you dispute that the deposit was held in bad faith? If so, why? If you do not dispute this, I don't understand why they shouldn't be held liable in some way for breach of contract. It's hard to prove actual damages to my person, other than that they have kept my money for far too long!

 

[Gail_in_Georgia]

In New York city the Attorney Generals office doesn't get to decide whether the deposit should be returned within 30 days.

The courts are the ones who decide. It's confusing to be in a state where the security deposit is to be returned within a "reasonable amount of time". Some judges have determined that 90 days is a "reasonable" amount of time to return the deposit.

And yes, if you do not hear from the landlord you should continue with legal action against the landlord who has failed to return your security deposit. You need to study the landlord/tenant statutes in New York city (and there are many) to make certain you can justify asking for triple the amount of your security deposit.

Gail

 

[Ctryder]

I believe the reason why you haven't heard from them and correct me if I am wrong. You did not state if you broke the lease with a written letter or was it verbal? Will make a difference. If it was verbal, the LL has no obligation to return deposit because you fail to give written notice. Check your lease and your state laws of security deposit.

 

[abracadabra]

Ctryder, this is not the case. They were informed via email well in advance of 30 days that we would not be renewing. Besides, there is no clause in our contract stating that we must give 30 days notice if we don't wish to renew.

Thanks for your advice Gail. The landlord/tenant laws seem to be nebulous in NY State. I really feel like if they can't live up to their contractual agreement of returning my security deposit within 60 days, or within a reasonable time (I think 60 days is beyond reasonable). The company I did business with is one biggest developers in Manhattan and they can't cut me a check within 2 months of my move out date? If I don't pay rent on time as I am obligated to in the contract, I have to pay a late fee. I guess the only difference is that the penalty for tenant in this case is specified in the contract

 

[MorgansDaddy]

Just to be on the safe side, next time it would be better to send such a notice via certified mail with return receipt. That way they can not say they didn't receive it, not saying they will, but they could. Other than that, you are well within your rights to take them to court for at least the amount they didn't return if you should so chose(and as far as double or triple, it depends on your state's laws). If you can afford to do so, I would hire a lawyer to fight for it for me. One, because you bet they will have one if they are a large company as you said. Two, because it is harder to collect on a judgment than win one, and the lawyer would handle collecting the judgment. Plus you can add the lawyer fees to the amount you are suing for, and if you win, you will recoup the money spent for the lawyer.

 

[Ctryder]

Ctryder, this is not the case. They were informed via email well in advance of 30 days that we would not be renewing. Besides, there is no clause in our contract stating that we must give 30 days notice if we don't wish to renew.

Thanks for your advice Gail. The landlord/tenant laws seem to be nebulous in NY State. I really feel like if they can't live up to their contractual agreement of returning my security deposit within 60 days, or within a reasonable time (I think 60 days is beyond reasonable). The company I did business with is one biggest developers in Manhattan and they can't cut me a check within 2 months of my move out date? If I don't pay rent on time as I am obligated to in the contract, I have to pay a late fee. I guess the only difference is that the penalty for tenant in this case is specified in the contract

You didn't read the post from Gail above, even thou the lease has no clause stating the 30 days notice, it is the Law. Reread her post. I don't know how well a email will hold up, they could always say you didn't send it, it went to trash, or spam and they just delete those things. Next time do it by cert reg mail. I have heard of a state has 90 days to return sec deposit and some just state within reason

 

[abracadabra]

if YOU reread her post, you will see that the 30 days she refers to is not in reference to 30 days notice, rather she refers to the deposit being returned within 30 days.