Advice needed regarding apartment security deposit

I currently rent an apartment from the owner of a townhouse in New York City. I have no lease. Due to her selling the house and other financial woes on her behalf, all tenants were informed on May 13 that they needed to try to find another apartment by June 1.

I was glad to leave, and have found another apartment. The lease will be signed this weekend. However, my landlord cannot afford to pay me my security deposit back. She's a nice, fair, well-meaning lady that isn't looking to screw anyone out of their money. My problem is, not only do I need that security deposit (which I have a receipt for) to pay for my new place, but I'm afraid that after I move out, I'll never hear from her again.

You can't get blood from a stone, but how do I ensure that I will receive my money at all? I have already accepted the fact that I'm not going to get any money anytime soon, but how do I ensure that I get it at all? We can exchange phone numbers and future addresses, but I'm just worried that once I leave the premises, I will never get my money and that I will no longer have any leverage.

Tomorrow morning I plan on calling the Consumer Frauds and Protection Bureau as well as the State Division of Housing and Community. I'm so stressed out right now that I'm looking for your suggestions or advice.

I have researched this online, and I have considered calling a lawyer. I guess I'm hoping someone here knows all the rules or has been through this themselves.

Any advice (non-sarcastic) would be MUCH appreciated.

Thank you all in advance for listening to my whining.

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That is true, but I must also point out that my landlord hasn't yet secured another home. Her phone number will change. All I know about her, after May 31, is her name and previous address. I'm just worried that after we all move out, there will be no way of finding her.

I'm hoping that it doesn't get to the point of going to court. She's a nice woman and I truly feel for her. I guess I've just got to worry about myself at this point, huh?

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I wouldn't leave that apartment until you get the security deposit back. There is no way she has no money if she is selling her townhouse for, what I assume, millions of dollars. She also gave you and the other tenants a very short notice.

You could have squated another month.

I manage my building (in LA, so the laws are different, but...) if you don't have a lease, you are kind of screwed.

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I am only familiar with California law, but I believe under NY law, without a lease you are considered a month-to-month tenant, and you are entitled to your security deposit if there is no damage to the unit (reasonable wear and tear is permitted).

Here is some info and a resource for NY Law.

http://www.housingnyc.com/html/resources/attygenguide.html

There is also a pamphlet there about recovering security deposits and a complaint for with the AG.

If she had been a decent person, she would have told you before you paid the rent, and you could have withheld it for the deposit.

I would personally try and get her DL number, and anything else you can find to track her down if you have to go after her. I don't know how big the deposit is, but small claims court may be an option.

http://www.oag.state.ny.us/complaints/complaints.html

It's the same here BUT those terms are spelled out in the lease. I'm not sure if those terms apply if there was no signed agreement on your part when you gave her the deposit at the time you moved in. Verbal contracts can be legal but like others, I don't know the details of New York law. Is brdlwyr or one of our other board lawyers listening?

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Updated On: 5/23/08 at 08:06 AM

Thank you all! Hopefully this will work out.

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How long have you been in the apartment? If there is no lease is there any documentation explaining what the security deposit can be used for?

If normal wear and tear can be taken out of the security deposit then she might be able to argue that you weren't getting anything back due to the deposit being used to make repairs prior to the sell of the property.