New Jersey security deposit rules
New Jersey limits security deposits to 1.5 months' rent (1 1/2 times one month's rent); annual additional security collections capped at 10% of the current deposit. The deposit must be returned 30 days after termination of the lease, by personal delivery or registered/certified mail, with itemized statement of interest and deductions; 5 business days if tenant displaced by fire/flood/condemnation/evacuation; 15 business days for domestic-violence lease terminations; double damages for wrongful withholding. New Jersey is one of the states that requires interest on the deposit.
What the law requires
1.5 months' rent (1 1/2 times one month's rent); annual additional security collections capped at 10% of the current deposit. Returned 30 days after termination of the lease, by personal delivery or registered/certified mail, with itemized statement of interest and deductions; 5 business days if tenant displaced by fire/flood/condemnation/evacuation; 15 business days for domestic-violence lease terminations; double damages for wrongful withholding. Rent Security Deposit Act. Deposit must be held in an interest-bearing account or money-market fund (46:8-19); interest belongs to tenant and is paid/credited annually; landlord must give written notice of depository within 30 days and at each annual payment. Act does not apply to owner-occupied premises with no more than 2 rental units unless tenant requests in writing (46:8-26 - UNVERIFIED against statute text; taken from NJ DCA Truth in Renting guide). Statute text read via Wayback snapshots of Justia 2025/2023 code (njleg.gov and Justia blocked direct access). No 2024-2026 amendments to these sections found.
- Deductions: unpaid rent and damage beyond normal wear and tear, itemised in writing. Cleaning and repainting after ordinary use are normal wear in most states.
- Deadline: the 30-day clock usually starts when the tenant moves out and, in many states, when a forwarding address is provided. Missing it typically forfeits the landlord’s right to keep any of the deposit and can add statutory damages.
- Pets: No separate pet-deposit statute; NJ DCA Truth in Renting guide states any pet deposit counts toward the 1.5-month cap (secondary).
- Interest: New Jersey requires interest on the deposit. The deposit interest calculator applies the rate and thresholds.
Move-out checklist
- Give written notice of the move-out date and a forwarding address; many deadlines only start when the landlord has the address.
- Photograph every room after cleaning, with a timestamp. Request a joint inspection where the state allows one.
- If the deadline passes, send a written demand citing N.J.S.A. 46:8-21.2; 46:8-21.1; 46:8-19. Small-claims court handles deposit disputes in every state and most cap the claim well above a typical deposit.
Related New Jersey rules
- Late fees: No statutory cap on late fees; fee must be in the lease and reasonable (courts). A 5-business-day grace period applies ONLY to tenants who are senior citizens receiving Social Security/railroad/government pensions, or recipients of SSDI, SSI, or Work First NJ benefits, when rent is due on the 1st (N.J.S.A. 2A:42-6.1, -6.3). No grace period for other tenants. Late fee calculator.
- Notice to end a tenancy: 1 month's written notice to quit ends a month-to-month tenancy (2A:18-56(b)); 3 months for year-to-year. BUT under the Anti-Eviction Act a landlord of covered residential housing cannot end a month-to-month tenancy without one of the statutory good causes; the 1-month landlord notice effectively applies only to exempt tenancies (owner-occupied with 2 or fewer rental units, etc.) and to tenants giving notice. Notice calculator.
- All rules on one page: New Jersey landlord and tenant law.
Frequently asked questions
How much can a landlord charge for a security deposit in New Jersey?
1.5 months' rent (1 1/2 times one month's rent); annual additional security collections capped at 10% of the current deposit. Rent Security Deposit Act. Deposit must be held in an interest-bearing account or money-market fund (46:8-19); interest belongs to tenant and is paid/credited annually; landlord must give written notice of depository within 30 days and at each annual payment. Act does not apply to owner-occupied premises with no more than 2 rental units unless tenant requests in writing (46:8-26 - UNVERIFIED against statute text; taken from NJ DCA Truth in Renting guide). Statute text read via Wayback snapshots of Justia 2025/2023 code (njleg.gov and Justia blocked direct access). No 2024-2026 amendments to these sections found.
How long does a landlord have to return a security deposit in New Jersey?
30 days after termination of the lease, by personal delivery or registered/certified mail, with itemized statement of interest and deductions; 5 business days if tenant displaced by fire/flood/condemnation/evacuation; 15 business days for domestic-violence lease terminations; double damages for wrongful withholding. The statute is N.J.S.A. 46:8-21.2; 46:8-21.1; 46:8-19.
Does a New Jersey landlord have to pay interest on the security deposit?
Yes, in the circumstances set out in N.J.S.A. 46:8-21.2; 46:8-21.1; 46:8-19. See the New Jersey deposit interest calculator for the rate and the rules.
Are pet deposits limited in New Jersey?
No separate pet-deposit statute; NJ DCA Truth in Renting guide states any pet deposit counts toward the 1.5-month cap (secondary).