8 New Jersey Transaction Guide § 142.50

Summary

• [1] Application of Rent Security Deposit Act.

  The New Jersey Rent Security Deposit Act [N.J.S. 46:8-19–46:8-27] applies to all rental premises or units used for dwelling purposes, except owner-occupied premises with no more than two rental units. However, a tenant whose residential unit is otherwise exempt may elect to extend the protection afforded under this statute by furnishing 30 days’ written notice to the landlord [N.J.S. 46:8-26]. This election should be made at the commencement of the tenancy and, upon receipt of such notice, the landlord is obliged to comply with the requirements of the statute. For a form for the tenant to invoke the protection of the Act, see § 152.241.

• [2] Amount of Security Deposit.

  A landlord may not demand a security deposit in excess of one and one-half times the monthly rent. Any amount collected annually as additional security may not exceed 10 percent of the current security deposit [N.J.S. 46:8-21.2].

• [3] Landlord’s Obligation to Deposit or Invest ...