I live in Brooklyn, NY. I moved into a person's home to rent a room on a month to month basis. There was no paper contract - only a verbal agreement that when I planned to move out, I would give 30 days notice before leaving. I moved in on Sep 10 and paid the first month plus one month's deposit.

In December, I was asked to begin paying on the first, which I did starting Jan 1, 2013. Today (2/15) I was approved for an apartment and advised the guy I'm renting from that I am putting in my notice. He asked would I be leaving before Mar 1. I said yes if it's okay. He said because I did not give a full 30 days notice, I would owe him my deposit plus and additional half a month's rent for the two weeks into March that I would not be occupying the space. When I asked hours later if I could stay until Mar 15 to fulfill the 30 days, he replied that he had rented the room to his cousin as of Mar 2 (the day after I vacate). Despite this, he still claims to keeping my deposit and requiring the half month.

Is that legal? And can I still recoup any part of my deposit?

Legally no. He is required to return your deposit or an accounting of how it was used within a statutory time frame. While he could require that you owed until 3/15. If he was able to rent the room before that date he has to mitigate what you owed.

The problem is, if he doesn't give you the deposit back you will have to sue him to get it.

Thanks Scott. This was very helpful.
Is there a law I can reference when I begin to challenge my landlord's ridiculous claim?

Also, is it true that as a month to month tenant in NYC that as long as I have paid through to the time that I reserve occupancy that I am not required to give a 30 day notice at all? I found the New York Real Property - Article 7 - § 232-A, but I think that only refers to the landlord being obligated to give you notice before he asks the tenant to leave.

The only laws I found refer to landlord as well. Also, the law doesn't specify a time frame for return of the deposit, only a reasonable period. Small claims courts have placed that as around 21-45 days.

I think a court would apply the same rules to the tenant as the landlord.