lease-provisions

New Jersey Security Deposit Law

Author: Kasee Godwin
Date: 12.01.2023

A Comprehensive Guide to New Jersey Security Deposit Law

Understanding the New Jersey Security Deposit Law is crucial for landlords and tenants to ensure compliance and protect their rights. This law, governed by the Security Deposit Act, N.J.S.A. 46:8-19 et seq., sets the framework for how security deposits are handled in the state.

Key Aspects of the New Jersey Security Deposit Law

Maximum Security Deposit

Landlords can charge up to one and a half months’ rent as a security deposit. This cap aims to protect tenants from excessive financial burdens.

Deposit Return Timeline

Landlords must return the security deposit within 30 days of lease termination. The deposit must be returned within five days in some instances like floods, fires, evacuations, or condemnations causing the tenant’s departure.

Permissible Deductions

Landlords can deduct from the security deposit for unpaid rent, late fees, utilities, and costs of damages, excluding normal wear and tear.

Itemized Deductions and Notices

Landlords must provide tenants with an itemized list of any deductions made from the security deposit, along with written notice specifying the name and address of the institution where the deposit is held.

Additional Tenant Protections

New Jersey law includes specific protections for tenants, such as the right to receive annual interest on security deposits for properties with more than six residential units and the right to request a pre-move-out inspection.

Landlord Obligations

Landlords must properly handle and store security deposits in a separate account and provide tenants with a written receipt and a detailed statement documenting the rental unit’s condition before collecting the security deposit.

Handling Disputes

In a security deposit dispute, tenants should try to resolve the issue through communication with the landlord. They can file a complaint with the New Jersey Department of Community Affairsif unresolved.

The Importance of Understanding New Jersey Security Deposit Law

For a harmonious landlord-tenant relationship, both parties need to stay informed about these laws and amendments. This understanding helps avoid disputes, ensures legal compliance, and protects the rights of both landlords and tenants in New Jersey.

Disclaimer

Qira aims to keep this information as up-to-date as possible. The content provided here is informational and should be different from legal counsel. Please refer to the relevant government sources to check for any changes or updates to the law.

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Kasee Godwin

Position: Director of Marketing
Social Networks

Kasee is the Director of Marketing for Qira. She has nearly 15 years of experience in the real estate marketing industry, including 10 years on the client side. In her spare time, she enjoys reading science fiction, exploring new wineries, and fostering Golden Retrievers.

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