In New York there are some guidelines that both the landlords and tenants have to follow. These guidelines are not written in the lease, but they are valid and could land either a landlord
or tenant in some hot water.
When a tenant rents an apartment in the Queens, NY area normal procedure is the tenant gives the landlord one month rent and one month of security (and if there was a Realtor used in the transaction - the brokers fee goes to the Realtor).
At the end of the term, if the landlord and tenant have both agreed to not renew the lease, the only two reasons why a landlord can dispute returning the security funds is - 1. As payment for last months rent or 2. repairs that are beyond normal wear and tear.
Landlords are not allowed to have the security money co-mingle with their own funds. If it is a building with six or more units then the landlords MUST put the funds in a NYC bank interest earning account at the prevailing rate. The tenants can request to know what bank the funds have been placed. The tenants are also allowed to collect the interest earned, minus 1% for administrative fees.
Related articles:
RentLaw.com "New York Security Deposits"
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