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landlord's response to allegations of unjustly holding tenants' security deposits has shed light on a contentious issue in New York City's rental market. Ches Parnes, owner of 13 buildings with 133 apartments, claimed he had returned two security deposits and was unable to rent out a third unit until the following month due to a tenant's late departure. He estimated that he keeps about 5% of deposits from tenants who leave holes in walls, move out early or late, or don't grant access to brokers.
Parnes acknowledged that landlords have little incentive to return deposits because tenants must go to court and win a judgment, which can be difficult to collect. One reader suggested holding security deposits in escrow accounts to alleviate the problem, but this solution is not without its drawbacks, including administrative costs and potential disputes over money.
The current system has failed both landlords and tenants, with Parnes himself experiencing a four-year court battle over back rent exceeding $100,000. A proposal to hold security deposits in escrow could help balance the power between landlords and tenants.
In other news, the city's property records database, ACRIS, reported a $300 million loan in Brooklyn that was later found to be a $300,000 loan due to a typographical error. Real estate agent Veronique Perrin discovered that Winston Nguyen, a teacher fired for soliciting graphic images from students, had stolen over $300,000 from an elderly couple.
The expansion of Citi Bike has raised concerns about gentrification in communities of color, with some arguing that the service provides "equitable access" while others see it as a catalyst for displacement. South Bronx advocate Majora Carter notes that Black people also enjoy amenities like bike lanes and coffee shops.
New York City's rental market is characterized by a low mobility rate, with fewer than 1 in 10 residents moving in the past year. The city's vacancy rate was last measured at 1.4%, a 56-year low, due in part to rent stabilization. In contrast, cities like Miami and Orlando have higher mobility rates and more fluid housing markets.
