First + last + one month deposit VS. first + two months

[persiflage]

My husband and I are trying to rent a rent-stabilised apartment in lower Manhattan.

The landlord asked for the first month and two months rent as a security deposit (so a total of three months rent).

We explained it is not legal to ask for two months rent as security deposit, only one.

The landlord is now asking for first, last and one month's security deposit (so a total of three months rent).

Is it legal for the landlord to demand a "last" month of rent on a rent stabilized apartment? (Especially as the rent will go up if we renew our lease at the end of the original lease....)

If the landlord demands a "last month", are we legally obligated to increase this original deposit in line with the amount our monthly rent increases each time we renew our lease?

(Any links to NYC rent stabilisation code very appreciated.)

[TenantNet]

No, it's not legal, but how much do you want the unit? OTOH, if the LL is doing this, chances are he will be a sleaze on other issues. Buyer Beware, but it's a seller market. What you can do is do what he asks, then after you get occupancy, use the extra illegal deposit in lieu of rent. Make sure the unit is stabilized - check with DHCR. The RSC is on TenantNet.

[Phil Cohen]

Also the second month rent might be viewed as an overcharge, entitling you to treble damages.

[persiflage]

Thanks to all who replied. This practice IS illegal.

Presented with the phone number to the Attorney General's office, the landlord thought about it two days and caved, offering us the flat for only one month's security deposit. (Although by this time we decided not to take it, as we had no desire to deal with the landlord longterm.)

Here are some helpful phone numbers for anyone in the same situation:

State Attorney General's office in NYC: 212-416-8342
These people explained that it is only legal to ask for one month security deposit for a rent stabilized apartment.

Manhattan DHCR: 212-480-6700
These people confirmed the apartment we looked at was rent stabilized, and gave me its rent history.

<small>[ May 16, 2002, 04:45 PM: Message edited by: persiflage ]</small>