From the Times:
On Nov. 19, my landlord told me that he was raising the rent $100 and that the increase would take effect with the new lease. Our lease was up on Nov. 30, giving us only 11 days to respond. We decided we didn’t want to pay the higher rent, so within 24 hours of being notified of the increase, we let our landlord know that we would not be renewing.
We just received our security deposit with a letter stating that the landlord had withheld 37 percent of our deposit for “failure to provide 60 days’ notice of moving out, as stated in the lease.” Can the landlord do this?
The answer, according to the Times’ attorney? The landlord has the law on his side, but, if the tenants sue, a judge would probably rule their way.
As she / he should!
Source: In Dispute With a Landlord Over a Deposit – By Jay Romano, The New York Times