Stringer wants one-month cap on renters’ security deposits

Comptroller says landlords collect too much money with little benefit for renters

Jul.July 16, 2018 10:00 AM

Scott Stringer and a security deposit (Credit: iStock)

City Comptroller Scott Stringer wants new restrictions on renters’ security deposits.

A new report by the comptroller’s office found that New Yorkers spent approximately $507 million on security deposits in 2016, Pix 11 reported.

“Right now, the landlords are collecting all this money and it’s doing nothing for the tenants,” Stringer said.

Stringer has proposed that the state introduce legislation that would put a one-month cap on the deposits landlords can require of tenants, similar to the limitations for rent-regulated apartments.

Jeremiah Schlotman, chair of the Housing Committee for East Harlem’s Community Board 11, said the thorniest part of security-deposit reform is getting the deposit back. He said tenants often have to sue their landlords to get their money back.

“Right now, the onus is on the tenant to sue his landlord to get the security deposit back,” Schlotman said. “These proposals would make the playing field less unlevel.”

A small handful of startups are looking to create alternatives to the traditional security deposit model. Two New York-based startups, Jetty and Rhino, charge renters a fee, and then agree to reimburse the landlord for any damages to the property. [Pix 11]Rich Bockmann

Related Articles

With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Wesley Edens’s Fortress Investment Group picked up a mortgage bond portfolio for a steal (Credit: Drew Angerer/Getty Images, iStock)

Sharks circle as mortgage lenders shed portfolios at steep discounts

Commercial loans expected to suffer because of the pandemic (Credit: iStock)

March saw fewer CMBS delinquencies. That is likely to change: Fitch

(Credit: iStock)

Thousands of CRE borrowers call on banks for debt relief

Banks, funds, mortgage REITs, and agencies like Fannie Mae and Freddie Mac have all begun adjusting their lending approach in face of the economic downturn (Credit: iStock)

These are the sectors where real estate lending is still happening: report

Angel Oak Cos. CEO Michael Fierman and Flagstar Bancorp Inc. CEO Alessandro DiNello (Credit: Angel Oak, Flagstar, iStock)

Mortgage market dries up for unconventional home loans

A WeWork office (Credit: Alex Tai/SOPA Images/LightRocket via Getty Images)

WeWork offers rent discounts as incentive to secure long-term leases