Forum
« Giving financial info to broker Help Finding a Good Bklyn Broker »
May 15, 2009
Do I break my lease if....
I have a question regarding a lease and security deposit. When I moved into my current apt. I paid first, last and security (equal to 1 months rent). I read my contract very carefully and noticed it said the security would be placed in a bank account in which my landlord would have to give me the information to what branch etc etc. Well my landlord doesn't believe in banks and ONLY accepts rent in the form of cash (used to accept money order but WaMu went under.) So I inquired what will be done with the security since he doesn't believe in banks. He told me I could use the security as a months rent. Now I have 2 months left on the lease, one which was paid for before I moved in and when I asked to put the security up for the other in case we find a place and want to move within the next to months he said I would be breaking the lease. Basically he said I have to wait till the last day of my lease to move out and must move out then to get my security back, otherwise I could stay another month and use my security for that month? I know it all sounds really shady but if I move out early is that a breach of contract although I have paid the last 2 months??
Comments
If you move out before the lease is up you will be breaking the lease, yes.
Does the lease say anything about using the security as a month's rent? Verbal agreements are usually irrelevant.
Posted by: mopar at May 15, 2009 2:39 PM
The purpose of putting your security deposit in a bank account is so that it earn interest which is transferred to you when you leave. If your lease said that the deposit would be put into an interest accuring bank acount then you have a right to expect a little something extra when you vacate(minus and cost for damages.) Also, your landlord cannot control your comings and goings. If you move out of the apartment two months before the end of the lease, but you still paid the rent for those two months then he/she has no cause for complaint. You are still liable for the final two months - not being physically there is irrelevant. I think that it would be an ideal scenario for any landlord. They get their rent, and have two fully paid months in which to enter the apartment to do repairs. Sounds like your landlord is being unreasonable. On the flip side, I would never let my tenants use their security deposit as rent. Its meant to be held against any damages to the apt. But if your landlord said that you can use it for rent then that is within his/her right to do so. I only mention this because the scenario would be different if he/she told you that you CAN'T use the security for rent.
Posted by: Turtlejam19 at May 15, 2009 2:59 PM
One practical matter to consider: If you give your 30-day notice one month before your lease is up, and you move when the lease is up, your landlord is supposed to return the security deposit to you minus any charges for damages. But sometimes they don't return the money. Then you would have to take them to small claims court and also collect. If you stay in the apartment for an extra month and use the security as last month's rent, as your landlord suggests, it will give you two months to save another security deposit.
Of course, your landlord may very well intend to give the security deposit back, so this may not matter.
Posted by: mopar at May 16, 2009 11:57 AM
First off, you said you paid the last 2 months? I thought you said you paid only the last month and the landlord said you can use the sec as the last (extra's) month's rent, I'm always wary of landords agreeing to to use the security as last month unless you get it in writing. To my knowledge, landlords are only required to put sec in an interest bearing account in units of 6 or more. Long story short get it in writing or pay your all your months and get your sec back when you move.
Posted by: Crownlfc at May 16, 2009 2:31 PM
OK, none of this is legal advice but most of the advice on here is what you should technically do in order to honor the terms of the contract. However, it exposes you to problems.
The guy doesnt dislike banks. He dislikes taxes, judgment enforcement, alimony, and/or child support.
While you are in possession, you have a lot of power. Any tenant can leave a couch and some clothes to retain possession of an apt and force eviction proceedings even if they've moved out. (There are some very good reasons not to do it, but it gives landlords nightmares). Last and security actually underestimates the damage a moderately destructive tenant can do.
Once the tenant moves out, the landlord has no incentive to return it. The worst case is a lawsuit. If he wants to settle in court he can. Otherwise, all a tenant can get is a piece of paper so you can chase down his money. Plenty of people have better things to do. Even though you can do it without an atty, it takes a substantial time investment. Many former tenants dont bother.
So long as the apt is vacated in a timely fashion and left in good condition, the landlord isnt really hurt.
Posted by: slick at May 17, 2009 2:45 AM
I agree with Crownlfc. If your LL is willing to let you use security as last month's rent, tell him you want a walk-through on the first day of that last month and have a letter written for him to sign saying that you won't owe him anything when the lease expires and that the apartment was in good condition (assuming it is). And take your own pictures on the day you leave.
Posted by: Iris at May 18, 2009 9:18 AM
There is another purpose of a security deposit that is not mentioned here: to ensure that the tenant vacates the apartment at the end of the lease. If you stay in the apartment after the end of the lease, and don't have the landlord's written consent to do so, you could expose yourself to a holdover action, and under NY state law be liable for up to three times the last rent in force for any period you holdover.
As others here already said, if it isn't in writing that you may use all or part of your security deposit for the last month's rent, it doesn't exist. Allowing a tenant to use part of their deposit for the last month's rent is something I do, but is wholly dependent on the performance of the tenant; it is not something that would ever be in a lease of mine at the outset.
It is true that if your building has 6 or more units the security has to be in an interest bearing account, held on your behalf, and not commingled. The landlord is then allowed to deduct (last time I looked, so may be out of date) 1% for managing it. given that banks are paying less than 1% interest on accounts now, there would be no net interest for the tenant.
good luck.
Posted by: raphael9 at May 18, 2009 5:09 PM
Post a comment
Please be patient while your comment is published. It may take a moment.