In considering a tenant's action for the return of the security deposit paid to the landlord, one first must consider the applicable statute. Article 7 of the General Obligations Law addresses obligations of parties who hold property received as security, and title 1 of that article specifically addresses security deposits for the rental of real property. In particular, section 7-103 (1) of the General Obligations Law states as follows:
"Whenever money shall be deposited or advanced on a contract or license agreement for the use or rental of real property as security for performance of the contract or agreement or to be applied to payments upon such contract or agreement when due, such money, with interest accruing thereon, if any, until repaid or so applied, shall continue to be the money of the person making such deposit or advance and shall be held in trust by the person with whom such deposit or advance shall be made and shall not be mingled with the personal moneys or become an asset of the person receiving the same" (emphasis supplied).
{**60 Misc 3d at 842}The meaning of section 7-103 (1) couldn't be more clear: the security deposit is the tenant's, not the landlord's, money. The landlord is merely holding the deposit "in trust" for the tenant during the tenant's occupancy of the landlord's property and must be returned at the end of the tenancy. (Wicklund v Mukhtyar, 55 Misc 3d 152[A], 2017 NY Slip Op 50789[U], *1 [App Term, 2d Dept, 9th & 10th Jud Dists 2017]; Kamara v Pavia, 11 Misc 3d 1051[A], 2006 NY Slip Op 50172[U], *3 [2006].)