Any LANDLORDS out there ? need advice?

Question

I am a new landlord in New York and need some advice from experienced landlords. I am renting out a co op apartment unit to two roommates in their 20s. I recently spent tens of thousands of dollars completely renovating the apartment, so I want to protect my investment the best I can. I took 1 months security deposit from the tenants. Since I spent tens of thousands dollars renovating the apartment, I would like to make sure I can hold back the most amount of money I possibly can in order to cover for any and all damages once they move out. How can I successfully hold back the security deposit should they do any type of damage to the apartment? Has anyone had any experience with this?

thank you

Answer 1

You may be confusing a security deposit with rent. You mention you took "one months security deposit". I take that to mean the security deposit is equal to one months rent. In most states rent and a security deposit are totally different legally and treated differently. There are states that the landlord cannot apply the security deposit to rental monies owed and there are specific laws as to the circumstances on how to handle returning or keeping a security deposit or any portion of it.

Usually after the tenant moves out and you find damage you notify them of same with certified mail. The tenant has a chance to address, dispute or correct the complaint of the landlord. After the tenant has had the opportunity to answer and there is true damage/s or repairs (not 'normal wear & tear') you can deduct monies from the security deposit - or keep it. Be sure to keep receipts of repairs and used licensed workman, should it come to litigation. The amounts should be what is normal costs *for the market*

You need to make sure you have pictures of the property at move-in time, have an inventory list and go over that in a walk through when tenant is leaving. If there is damage - take pictures. I would recommend have a couple of people with you for possible witnesses if it comes to litigation.

Having documentation of the renovations along with photos help protect you. You may want to have a higher deposit if you are feeling really uncomfortable. Of course, you cannot if you have already rented. A strict detailed lease also helps a landlord be proactive in avoiding misunderstandings. Put everything in writing - always! Get yourself a notebook and document any thing and everything that happens.

Hope this helps a little.(this is not specific to the state of New York)

Answer 2

Wow, you sound like a real greedy little bugger. You cannot, by law, hold back anything that is "normal wear and tear". If something is truly damaged, you can only take out what it costs to repair it, reasonably.

If you spent "tens of thousands" why on earth did you rent to two 20-somethings? If the place was really stellar, why didn't someone older with lots of bucks want it?