Landlord Can't Collect 'Key Deposit'

July 31, 1997

LVT Number: 11684

Tenant complained of a rent overcharge based on landlord's collection of a $50 ``key deposit.'' The DRA ruled for tenant, and landlord appealed, claiming that it charged tenants the key deposit to ensure the return of keys when tenants moved out. At that time, landlord would return the deposit to tenant. The DHCR ruled against landlord. Landlord couldn't collect a key deposit under the Rent Stabilization Law or Code.

Tenant complained of a rent overcharge based on landlord's collection of a $50 ``key deposit.'' The DRA ruled for tenant, and landlord appealed, claiming that it charged tenants the key deposit to ensure the return of keys when tenants moved out. At that time, landlord would return the deposit to tenant. The DHCR ruled against landlord. Landlord couldn't collect a key deposit under the Rent Stabilization Law or Code.

Slope Realty Co.: DHCR Adm. Rev. Dckt. No. CH210157RO (3/13/97) [2-page document]

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