SECURITY DEPOSITS

I recently purchased a ten-family building in Woodside.  The tenants are asking for the interest on their Security Deposits.  I told them they will have to get in contact with the previous landlord since I didn't receive any security monies.  Was I right in telling them this?

                                                       R.G. Woodside

No.  According to the New York State Attorney General, a landlord is liable for any security and accumulated interest whether or not it was transferred by the previous owner.

You should first send letters to all the tenants in the building requesting they send proof that, in fact, they had given security deposits.  Proper proof would be a signed lease by both tenant and previous owner and cancelled checks or receipts showing the amount of the security submitted.  The tenant should answer the letter in a timely manner, about 30 days.  If the tenants fail to submit proof of security, they waive their right to request interest.

Once you receive the information from the tenants, I advise you to get in contact with the previous owner and request information on the tenants security deposits.  If the previous owner refuses to give you that information, you may want to contact an attorney.

I will be moving out in June from my rent stabilized apartment. A neighbor told me that I can use my security deposit for the last month's rent. Is this true?

                                                             E.S., Astoria

No. According to DHCR, security deposit should not be used as a final month's rent. Security deposit is to be used for the cost of repairs, beyond normal wear and tear, damages to the apartment; or for any unpaid rent. It's up to your landlord whether or not you can use the security deposit for the last month's rent.