A new civic tech application, known as Depositron, is making waves in New York City by assisting tenants in reclaiming their security deposits that landlords often withhold after move-out.
This move comes in light of a 2019 state law that mandates landlords to return security deposits within 14 days of a tenant vacating the premises. If a landlord intends to withhold a deposit for damages, they must inform the tenant of their decision.
Sateesh Nori, a former lawyer who previously managed the civic tech initiative JustFix, highlights the dilemma many tenants face: they are often unaware of their rights, allowing landlords to take advantage of them.
“The law is really strong, but no one knows about it, and no one’s able to take advantage of it,” Nori states.
In response to this issue, Nori and his partner Tom Martin developed the mobile-friendly webpage Depositron, aimed at guiding tenants through the process of securing their deposits. The application generates a demand letter that tenants can send directly to their landlords, thereby simplifying the often daunting experience of retrieving their funds.
Statistics show a significant problem: since the beginning of 2023, nearly 5,000 New Yorkers have filed complaints with the State Attorney General’s office regarding missing security deposits. The office has managed to reclaim $2.1 million for tenants during this timeframe, but Nori believes the real issue might be far greater, potentially costing renters tens of millions of dollars each year in unclaimed deposits.
The app launched on July 4 and quickly gained traction, with over 300 users in its first nine days. Currently, it is free to use, but the developers are exploring both grant funding and potential paid features to ensure sustainability for their application.
When a landlord refuses to return a security deposit, tenants have several options available to them. They can file a complaint with the State Attorney General’s office or pursue a case in small claims court. However, this legal route can often stretch for more than a year, posing a challenge for many renters who must weigh the benefit of pursuing their rightful funds against the investment of time and energy required.
Adrian Nesta, a Brooklyn resident who engaged in a prolonged 16-month battle with his landlord, experienced firsthand the complexity of retrieving security deposits. After moving out of his Bedford-Stuyvesant apartment in 2022, Nesta’s landlord withheld his deposit, citing damages.
Determined to reclaim his funds, Nesta filed a complaint with the attorney general’s office and took his landlord to small claims court.
“They’re relying on the fact that they have the money at the end of the day, you don’t,” Nesta explained.
With limited support from lawyers willing to take such small cases, he represented himself in court, diligently researching the law and its relevant sections. After significant effort, Nesta successfully retrieved his deposit, aided by a letter he crafted that bore similarities to what Depositron generates.
The functionality of Depositron lies in its AI-driven interface, which prompts users to answer a series of questions. It then customizes a demand letter that includes pertinent legal statutes, tenant-specific information, and the option to attach images as evidence.
Nori expresses optimism that this tool will empower tenants to assert their rights and compel landlords to comply with the law, ideally leading to quicker resolutions and reducing the need for small claims court.
However, Nori cautions that the chatbot and resulting letter should not be seen as a substitute for legal advice. Each case has its unique nuances, and there are no assurances of financial recovery.
Landlords are permitted to retain security deposits for valid reasons, such as covering damages, but they are obligated to notify tenants within the 14-day timeframe and provide an itemized list of costs.
Ellen Davidson, a staff attorney at the Legal Aid Society, noted that while she cannot guarantee that a demand letter will compel landlords to act, tools like Depositron can indeed make it easier for tenants to advocate for themselves.
“Anything that makes it easier for a tenant to assert their rights is a good thing,” Davidson remarked.
As Depositron continues to gain traction among New York City renters, its creators hope to create a more informed tenant base that can confidently pursue their rights and financial restitution.
image source from：citylimits
