How Do Security Deposits Work in New Jersey?

In New Jersey, landlords can charge one and a half months’ rent for a security deposit and may require you to pay a pet deposit if you live with an animal.
Written by Andrew Biro
Reviewed by Melanie Reiff
background
New Jersey
state law allows landlords to charge tenants a refundable security deposit that is equal to one and a half months rent, as well as an additional pet deposit if you live with an animal companion. Once your lease is up and you’ve surrendered your keys, the landlord has 30 days to return your money.
Since exact laws vary from state to state, security deposits can be one of the most frustrating parts of renting. To make matters worse, landlords are famous for withholding large amounts of a security deposit for seemingly petty reasons—and some security deposits are really expensive.
It's best to educate yourself on your state’s laws before actually making a deposit. That’s why licensed home and
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What is New Jersey law on security deposits?

From a legal standpoint, tenants in New Jersey are required to pay a refundable security deposit to establish their intent on moving into a rental property. As long as you did not violate the terms set by your landlord, you’re entitled to the full amount back upon moving out.

What’s the maximum security deposit a landlord can charge in New Jersey?

According to New Jersey state law, landlords are only able to charge the equivalent of one and half months’ rent for a security deposit. If your rent increases at any point during the year, your landlord is allowed to raise the security deposit as well, but never by more than 10% in a given year.
Your landlord may also require you to pay a pet deposit if you have an animal living in the rental property with you. This does not, however, apply to disabled renters who require a service animal, as that would be a breach of full and equal housing access regulations.
MORE: New Jersey electric vehicle incentives

How long does a landlord have to return a security deposit in New Jersey?

Once your lease is up and you’ve surrendered the keys and vacated the property, your landlord has 30 days to return your security deposit. This gives the landlord ample time to examine the rental property and ensure that you have met your requirements as the tenant.
In the event you have had to vacate the premises due to some sort of emergency—flooding, fire, condemnation, etc.—your landlord must return your security deposit within 5 days.

What can a landlord withhold a security deposit for in New Jersey?

In accordance with New Jersey law, security deposits cannot be totally nonrefundable, but landlords are legally allowed to withhold some or all of your security deposit in order to cover:
  • Unpaid utility charges
  • Unpaid rent
  • Damage that exceeds normal wear and tear
  • Cleaning fees
  • Changes made to the property that were unauthorized by the landlord
When it comes to what is considered exceeding normal wear and tear, there is—unfortunately—a bit of ambiguity. In most cases, excessive wear and tear is considered to be any damage that could be avoidable while living in a rental property or apartment. 
In the event your landlord decides to withhold some of your security deposit, they are legally required to provide you with an itemized list of deductions. This, in theory, prevents them from keeping your money without giving you a valid reason for doing so.
Key Takeaway New Jersey requires security deposits to be refundable, but landlords can withhold all or a portion of the deposit if you’ve failed to pay your rent or have caused avoidable damage to the property.

How to get your security deposit back in New Jersey

Let’s say that you moved out of your old apartment 40 days ago and your landlord still hasn’t returned your security deposit. What do you do? 
You should always contact your landlord first and ask for the security deposit in writing. It’s easy to jump to conclusions, but it’s possible there was a mix-up at the post office or that they simply forgot to send it to you. Opening with a clear request is always the best course of action.
In some cases, your landlord may be intentionally withholding the security deposit. If you think part or all of your deposit has been wrongly withheld, you can sue the landlord in small claims court. This can be a very lengthy and frustrating process, but it may be worth it if there’s a lot of money on the line.

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FAQs

Unless you’ve dirtied or damaged the carpet in your rental property or apartment beyond what is considered normal wear and tear, your landlord cannot withhold a portion of your security deposit to pay for carpet cleaning.
No—you won’t be able to use your security deposit as the last month’s rent and should make your rent payment as you normally would. Once your tenancy is up, you’ve moved out, and have surrendered the keys to your landlord, you’ll receive your security deposit separately.
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