using sercurity deposit for last mos. rent

Happens frequently with renters. Legally tenants can't do that as per lease or rider. Practically, they do it more often than desired by owners. You can approach it "friendly" and inspect the property before tenant leaves (if no damage then you can let 'em get away with it). Or you can pursue it "legally" with a formal written letter (certified is always better) stating the terms of the lease does not allow it and try to get the last month's rent.

Either way, consult your lawyer for statutory requirements of notice.

Good luck.

unfortunately by the time you serve legal papers on the tenant and considering the appropriate waiting times before an eviction could occur the month will be over, so if your tenant has done damage you have to sue them after they have vacated, I suggest you try and make sure you have a forwarding address, often the US Postal Service has forwarding mail order and you can get it that way, good luck and welcome to NYC renters laws

cincin,

You're an out of state owner (still haven't had my coffee yet) so my apologies. Obviously you're not here to inspect the property. Do you have anyone who can? My friend (a NJ owner) went through something similar but was sued by his former tenants. In the end, he had to give them the security deposit back although the tenants wrecked the place. The judgment was solely based on improper service of notice. You really need someone who can deal with this here in NYC.

If you don't have anyone here, contact me and perhaps I can help. My email is vlee@ccrny.com

For full disclosure, I manage my family's R.E. portfolio (commercial and residential) and I am also a broker.

I've had it both ways, tenants have not paid last month on units I rent out; my office landlord wouldn't return my security deposit after I paid the last month's rent before leaving.
If the rental market is strong enough I usually collect 2 months security deposit up front so that even if they don't pay last month, I still have 1 month security. But there isn't anything you can do practically if you are already in the situation you are in. I am surprised there isn't a market based solution for this, a sort of paypal for security deposits...