Is it illegal for a landlord to withhold keys pending receipt of proof of a renters insurance policy after the lease started?
The prospective landlord of a market rate apartment requires all tenants to purchase renter’s insurance with $100,000 liability coverage and to maintain it throughout the lease term.
This landlord has a policy not to release the keys to the new tenant until they provide proof of this renter’s insurance policy and liability coverage.
The insurance rider to the lease states that a new tenant has to present proof of having purchased a renter’s insurance policy with $100,000 liability coverage on or before the start date of their lease.
If the tenant is a few days’ late in purchasing and providing proof of the renter’s insurance policy with requisite liability coverage, is it legal for the new landlord to withhold the keys to the tenant’s apartment until the tenant gives them the proof of insurance coverage which they require, even though the tenant’s lease already started?
Is the Landlord’s policy to withhold the Tenant’s keys pending receipt of the proof of the tenant’s renter’s insurance coverage legal?
Dear Tenant:
It is your wrongful act that thwarts taking possession, that is acceptance of delivery of the keys from the landlord, at the commencement date. NY State housing law has a statute that deals with the failure to deliver possession at the commencement of the lease, but the statute is a default in the event the lease does not cover the situation.
§ 223-a. Remedies of lessee when possession is not delivered. In the
absence of an express provision to the contrary, there shall be implied
in every lease of real property a condition that the lessor will deliver
possession at the beginning of the term. In the event of breach of such
implied condition the lessee shall have the right to rescind the lease
and to recover the consideration paid. Such right shall not be deemed
inconsistent with any right of action he may have to recover damages. [https://www.nysenate.gov/legislation/laws/RPP/223-A]
Your lease has that "express provision to the contrary", that is, no insurance, no keys.
I have forty five years experience in the specialty of Housing Law and Tenant's...
Many market rate apartments today have that provision. It is reasonable for a landlord to require such a provision to protect against damage to the apartment, even fire damage caused by the tenant’s negligence. Hence such a provision would be legal.
Whether withholding the keys until proof of the policy is given is legal or not depends on the specific language of each lease.
Asker
I did not know about this policy before I signed the lease. This policy is not stated in my lease. The insurance rider to the lease states that the landlord can charge a $35 administrative fee to enforce the requirement that the tenant purchase the renter’s insurance policy. It does not say anything about the landlord withholding keys until they receive proof of the policy and the required liability coverage.
Asker
I don’t understand. My lease does not state that anywhere. The insurance rider does not state no insurance, no keys. The rest of my lease doesn’t state this policy either. Where are you getting this from? The insurance rider only says that the landlord can charge an administrative fee to make sure that the tenant purchases the required policy and coverage. Please explain how I am at fault and why you think my lease says no insurance no keys when I don’t see that anywhere in my lease.
Steven Warren Smollens
Landlord / Tenant Lawyer in New York, NYYou wrote: "...The insurance rider to the lease states that a new tenant has to present proof of having purchased a renter’s insurance policy with $100,000 liability coverage on or before the start date of their lease..."
Asker
I didn’t know about the “no insurance, no keys” policy. It is not stated in my lease. I was only informed about it 2 days after my lease started. Is this policy legal? Doesn’t it have to be in writing? In my lease or elsewhere?
Steven Warren Smollens
Landlord / Tenant Lawyer in New York, NYWhere is the Insurance Rider? Is that part of the lease documents you signed?
Asker
Yes. The insurance rider is part of the lease. It provides an explicit remedy for the landlord if the tenant fails to purchase Renter’s insurance and provide proof of the policy’s $100?000 liability coverage.. The Landlord’s remedy is to purchase the policy for the tenant and charge the tenant the premium cost of the policy and an administrative fee of $35 monthly. The lease rider does not state that the landlord will withhold keys until the tenant provides proof of a renter’s insurance policy with $100,000 liability coverage. The lease doesn’t state their “no insurance, no keys” policy either.
Steven Warren Smollens
Landlord / Tenant Lawyer in New York, NYOK. I will not tell you what to do. I do not have your lease and you are not a client. The statute provides the tenant denied possession at the start of the lease is entitled to rescind the lease and have all money already paid returned. "...In the event of breach of such implied condition the lessee shall have the right to rescind the lease and to recover the consideration paid..."
Asker
Thank you very much for your comments.
Steven Warren Smollens
Landlord / Tenant Lawyer in New York, NYYou're welcome. Good Luck.
Asker
One last thing- should it be obvious to a tenant that no insurance means no keys? Should this policy be explicitly stated in the lease? Does the insurance requirement automatically imply that the tenant can’t get the keys unless and until the renter provides proof of insurance coverage?
Steven Warren Smollens
Landlord / Tenant Lawyer in New York, NYHello. An answering attorney should suggest that without the entire lease and riders no opinion is possible. But you are real life evidence that you and the landlord did not have a meeting of minds and did not share mutual understanding of the terms and conditions of the lease agreement. That's due to ambiguity created by the author of the contract [the landlord] or if not ambiguous in the judgment of a court, you lacked ordinary capacity to comprehend. Either way, that ends without an enforceable contract. Except for a court determination you're going to wait a couple of years and spend several thousand dollars to fight in court. Sure your landlord was heavy handed and perhaps a bully. Maybe you did not understand the lease terms as would the so-called "reasonable person" would in the same circumstances. What are you going to do about it? Walk away from the lease and demand return to you of the money paid in advance or secure the required insurance, get the keys and move in?
Asker
Thank you for your help. I appreciate it.