Ask Altagracia: How do I protect my security deposit and avoid owing extra rent when my lease ends?
- Ensure you hand the apartment back and get written confirmation that keys were received
- Proof that the apartment has been re-rented can be a defense against demands for rent
The most important step is to memorialize the fact that you handed back the keys—at the very least by text.
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What do I need to do when my lease is up to protect my security deposit and avoid owing extra rent?
When a lease ends for a New York City rental, it's not enough to just move out, you need to take a couple of steps to officially turn over the apartment to the landlord. “In practical terms this means giving back the keys and having written acknowledgement from the landlord,” said Altagracia Pierre-Outerbridge, attorney and founder of Outerbridge Law representing residential tenants, condo owners and landlords.
Without this acknowledgement, a landlord might claim the tenant never formally moved out, leaving you vulnerable to a rent demand. You may also be liable for damage if, for example, a pipe bursts.
The most important step is to memorialize the fact that you handed back the keys—at the very least by text. “It’s also totally legitimate to ask for a receipt for the keys,” Pierre-Outerbridge said.
You need to make it clear you have moved out
If you were a month-to-month tenant and failed to return keys or left personal items in the apartment, a landlord may claim you did not surrender the apartment. “It would be illegal for the landlord to lock you out of the apartment,” Pierre-Outerbridge said. “So by filing a holdover case in housing court the landlord is able to take steps to legally take back possession of the apartment.”
If the apartment is rent-stabilized, you are entitled to automatic renewals so it’s very important to give notice if you want to terminate your lease. “If you do not return a renewal notice for a rent-stabilized apartment, your tenancy automatically continues, making you liable for rent,” Pierre-Outerbridge said.
However, if the landlord knows you have vacated the apartment, they have what’s called a duty to mitigate damages. “This means they must make reasonable efforts to re-rent the property as quickly as possible.” And once the apartment has a new tenant, you are not liable for rent. So proof that the apartment is re-rented will be your defense against any future rent demands.
Why you should ask for an inspection
Ideally, you should be doing a walkthrough on the day you move out. “All parties are then working with the same facts about the state of the apartment—and you have an opportunity to hand back the keys in person and get a receipt,” Pierre-Outerbridge said.
You are also entitled to an inspection of the apartment from 14 to 7 days before you leave. “This allows a discussion about repairs and gives you a window in which to do them before you move out,” Pierre-Outerbridge said.
If the landlord doesn’t give you an itemized statement of the repairs plus the remainder of the security deposit within 14 days of the end of the lease, they forfeit the right to any of the security deposit.
“And if the landlord wrongfully withholds the security deposit, they are liable for three times your deposit,” Pierre-Outerbridge said.
Altagracia Pierre-Outerbridge, Esq. is the owner of Outerbridge Law P.C, focusing primarily on tenant representation. The firm represents all sides in landlord-tenant litigation and transactional matters such as month-to-month holdovers, nuisance cases, licensee cases, harassment claims, repair cases, tenant buyouts, succession claims, DHCR overcharges and rent reductions and more. Pierre-Outerbridge has 15 years of experience litigating in Supreme, DHCR, and Housing Court. To submit a question for this column, click here. To contact Outerbridge Law P.C. directly, call 212-364-5612 or 877-OUTERBRIDGE, or schedule a meeting today.
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