Q: I live in a rent stabilized apartment in Bay Ridge, Brooklyn. Every time I renew my lease, I am asked to pay a little more to expand my original deposit. Therefore, it corresponds to the new monthly rent. Is that a normal practice? I have lived here for more than 10 years, but it seems that the account that keeps my deposit has recently opened. I don't think my deposit deserves interest. How can I address that?
A: Safety deposits are intended to cover damage to an apartment caused by the tenant. They are heavily regulated in New York and their landlord must follow the law.
A landmark New York's Housing Act adopted in 2019 limited the amount that a landlord can obtain for a deposit on a monthly rent, which meant that tenants no longer had to pay for several months, just to secure an apartment.
It may seem strange that it is asked for more money every time your lease is extended, but it is legal that the deposit increases with increasing rent. If your rent increases, the landlord can ask the difference between the new and old rents to supplement the existing deposit.
Even if you are freed from programs for justified seniors or people with disabilities of rent increases, you must pay the increase per rental extension once per rental extension so that it can be added to your deposit.
Regarding your suspicion that your deposit is not kept in an interest ranking account: tenants -stabilized tenants must be in a New York State Bank. Your landlord is entitled to an annual administrative fee of 1 percent of this amount stored. You have the choice that the landlord pays you the interest annually, applying for your rent or keeping you trust until it is repaid.
Unfortunately, said Rosalind Black, the urban home director at Legal Services NYC, “paid bank accounts so low interest rates that it is usually not due to interest on the deposit.”
If your deposit should clarify your interest, you can submit a complaint to the State of General of the New York State, but only after trying to work out with your landlord first. You can also submit a case to a court for small claims.