Gaining Landlord access to security deposit money

Gaining Landlord access to security deposit money by Edward (NY) on May 23, 2016 @20:21

As landlord, I rent apt. in White Plains NY and as required by NY law the security deposit ($2,100) is held in bank account for benefit of tenant. The bank has indicated that (legally) they are only able to write a check payable to the name on the account (which is the Tenant)and can only mail it to the address on the account which Tenant at apt. address.

The Tenant will be moving out at the end of June 2016, and I know that I will have legitimate documentation indicating that the full security deposit should NOT be returned. Yet it seems that according to what the bank is willing to do that my only option is:
Send letter to Tenant and indicate that as soon as they mail me a check for $635 that I will NOT instruct the bank to release the full security deposit to Tenant.

I actually live on west coast where security deposit actually has some teeth in it as Landlord has direct control over it. I'd appreciate any suggestions of how to get paid for damages and other Tenant cost responsibilities.

Thanks

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Re: Gaining Landlord access to security deposit money by Katiekate (New York) on May 24, 2016 @06:17	[ Reply ]

I cannot figure out why you did it that way For each new tenant, I open another CD. It has their name on the memo line. I send to the tenant all the documents on the CD...but of course they cannot cash it out. When they move out, I cash the CD..keep all the documents. And then send a check myself along with the bank records concerning the CD and the interest paid on it. I have never been required to open an account for the tenant...and I wonder if I could since the tenant would have to sign lots of documents for the IRS (proof the money didn't come from a money laundering operation ). I had this issue come up before judges (In a different county) and no judge has found fault with it

Re: Gaining Landlord access to security deposit money

Re: Gaining Landlord access to security deposit money by Anonymous on May 24, 2016 @06:20	[ Reply ]

your first mistake was setting up account in tenants name not yours. ny law calls for sd to be SEGREGATED and LL to advise T what bank the money is on deposit in. if LL has multiple properties the LL can hold all SD's in one single account. The intent of the law here is to prevent LL from co-mingling SD's with operating account funds. Just like attornies are supposed to do. I believe you now have no control over the SD money.

Re: Gaining Landlord access to security deposit money by Anonymous on May 24, 2016 @06:21	[ Reply ]

I think you have to sue them. You file in New York. How you will ever collect is a separate problem

Re: Gaining Landlord access to security deposit money by P-Bone (NY and OH) on May 24, 2016 @11:32	[ Reply ]

I've never had a specific escrow account for my property in Western New York. I opened an Ally Online Savings account and transfer all security deposits into that account and keep it only for that reason. Since it is online only, sometimes I have to transfer money in from other places I make the actual deposit. When a tenant leaves, I transfer the money to an Ally Money Market Account and I write a check from that account relating to the security deposit refund, whatever it may be.

Gaining Landlord access to security deposit money - Landlord Forum thread 345140