NYC Sublet Security Deposit

[sjs]

My question involves landlord-tenant law in the State of: New York City, New York

Hello. I am a tenant in a rental apartment in NYC. I currently do not reside in the unit, but I have a legal and authorized subtenant. We have a formal sublease agreement, making me the sublandlord and him the subtenant. The building has more than 6 units. I, however, only lease, and sublease one of them. Pursuant to the sublease agreement, the subtenant has paid me a deposit to be used for damages and cleaning. There is no language in the sublease agreement regarding how the security is to be held. Am I required to keep the security deposit in an interest bearing account? I know that the Master Landlord is required to to do so under NYC law , but as a sub-landlord, am I required to keep my subtenant's security in an interest bearing account? Thanks in advance.

[Mr. Knowitall]

You are a landlord, and thus are required to follow New York law relating to the holding of security deposits. You are, however, not a "landlord of a building with six or more apartments" - just of your own unit - so absent a city ordinance that imposes a similar requirement on you, you're not subject to the state statute imposing additional requirements on such landlords.

[sjs]

You are a landlord, and thus are required to follow New York law relating to the holding of security deposits. You are, however, not a "landlord of a building with six or more apartments" - just of your own unit - so absent a city ordinance that imposes a similar requirement on you, you're not subject to the state statute imposing additional requirements on such landlords.

Thank you. So to clarify, I am required to hold the security in trust for my tenant, but not required by law or statute to hold it in an interest bearing account if I do not choose to. If I do, however, choose to hold it in an interest bearing account, according to New York State General Obligations law, I am entitled to a 1% per annum administrative fee, but all interest over and above 1% is to be paid to my tenant, either by check or by applying it to the rent, annually.