-Landlords require security deposits to protect themselves financially against any unpaid rent or damages done to their apartments beyond the normal wear and tear.
-The money cannot be used for basic cleaning and repainting.
-It must be deposited in an escrow account separate from the landlord's personal funds (mixing security deposit and personal money is illegal in New York state)
-Each tenant must be notified in writing of the bank's name and address and amount of the security deposit
-Landlords of apartment buildings with 6 or more units must put all security deposits in interest-bearing New York bank accounts; 1% of the interest money can be used toward annual administrative expenses and the rest belongs to tenants that can be applied to their rents or paid them annually or at the end of their lease terms. Landlords of 6 or less unit buildings also have to follow the same rules if they deposit the money in interest-bearing accounts
-If the building is sold, all security deposits must be transferred to the new landlord, or returned to the tenants (who should be notified of the sale).
-At the end of the year, landlords may ask for tenants' W-9 forms to document for tax purposes the interest earned on security deposits for that year.
-The money cannot be used for basic cleaning and repainting.
-It must be deposited in an escrow account separate from the landlord's personal funds (mixing security deposit and personal money is illegal in New York state)
-Each tenant must be notified in writing of the bank's name and address and amount of the security deposit
-Landlords of apartment buildings with 6 or more units must put all security deposits in interest-bearing New York bank accounts; 1% of the interest money can be used toward annual administrative expenses and the rest belongs to tenants that can be applied to their rents or paid them annually or at the end of their lease terms. Landlords of 6 or less unit buildings also have to follow the same rules if they deposit the money in interest-bearing accounts
-If the building is sold, all security deposits must be transferred to the new landlord, or returned to the tenants (who should be notified of the sale).
-At the end of the year, landlords may ask for tenants' W-9 forms to document for tax purposes the interest earned on security deposits for that year.
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