| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent, late fees, and utilities
Costs of damage |
| Return Deadline | 30 days |
| Itemized Deductions | Required |
| Penalty for Late Return | 2x amount wrongfully withheld + court costs + attorneys’ fees |
For laws on security deposit collections and holdings in New Jersey, click here.
Some cities and counties may have regulations which are different from those presented here. Always check local laws.
Security Deposit Deductions in New Jersey
New Jersey allows these deductions from a security deposit:
- Unpaid rent, late fees, and utilities
- Costs of damage excluding normal wear and tear
Most states, including New Jersey, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable and reflect actual landlord expenses.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What Is Considered Normal Wear and Tear in New Jersey?
“Normal wear and tear” is damage and deterioration to a property that happens over time using an ordinary and reasonable level of care. Normal wear and tear includes things like:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
“Excessive damage” means any careless, reckless, or intentional damage that occurs because of someone on the property with the tenant’s permission. Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in New Jersey?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in New Jersey?
New Jersey landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in New Jersey?
Landlords in New Jersey cannot make deductions from the security deposit for cleaning unless the tenant causes damage that requires cleaning (e.g. wine stains on the carpet).
Can the Landlord Charge for Painting in New Jersey?
New Jersey landlords can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
Security Deposit Returns in New Jersey
Landlords must return a security deposit (with interest or earnings due) by hand-delivery, certified or registered mail to the tenant’s last known address with an itemized list of damages no later than 30 days after the termination of the lease.
How Long Do Landlords Have to Return Security Deposits in New Jersey?
New Jersey landlords have 30 days after the termination of the lease to return the security deposit.
However, there are a few exceptions:
- 15 days in a lease termination due to domestic violence
- 5 days if a tenant is displaced by fire, flood, condemnation, or evacuation
- 5 days if occupancy is prohibited by a public official
- 5 days if a building inspector certifies that displacement will last longer than seven days
Do Landlords Owe Interest on Security Deposits in New Jersey?
Landlords in New Jersey do owe interest (or earnings from an investment fund) on security deposits. Interest must be paid or credited to the tenant annually. When the security deposit (if any) is returned to the tenant, any accumulated interest or earnings should be included.
How Do Landlords Give Notice in New Jersey?
When returning a security deposit in New Jersey, an itemized statement of deductions must be sent by hand-delivery, certified, or registered mail to the tenant’s last known address. The written notice should include a detailed accounting of the deductions made plus the amount of interest or earnings due.
Can a Security Deposit Be Used for Last Month’s Rent in New Jersey?
New Jersey law does not forbid the security deposit from being used for any outstanding rent. If a tenant demands the use of the security deposit instead of paying rent, the landlord can begin the eviction process during the last month of the tenancy.
However, if the landlord fails to uphold their responsibilities regarding a security deposit, the tenant can make a written demand that the security deposit be applied toward rent.
Security Deposit Disputes in New Jersey
If landlords do not return the security deposit within the required time period, tenants can file a claim in court for up to twice the amount of the deposit wrongfully withheld plus court costs and reasonable attorneys’ fees.
Tenants can also take legal action against a landlord for:
- Failure to provide an itemized list of deductions
- Failure to provide interest or earnings due
- Unreasonable deductions
How Can Tenants File a Dispute for a Security Deposit in New Jersey?
If a landlord fails to perform their obligations regarding a security deposit, the tenant can file a dispute in Small Claims Court if the amount of damages is less than $5,000. If the amount is greater, the tenant must file a civil case in Special Civil Part. An attorney is not required but permitted.
A small claims case regarding the return of a security deposit must be filed within 6 years. Cases are filed in the county where the rental property is located or where the defendant lives or does business. Filing fees are$35for one defendant ($5 for each additional defendant) plus $7 for service on the defendant.
Sources
- 1 N.J. Stat. § 46:8-21.1
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Within 30 days after the termination of the tenant’s lease or licensee’s agreement, the owner or lessee shall return by personal delivery, registered or certified mail the sum so deposited plus the tenant’s portion of the interest or earnings accumulated thereon, less any charges expended in accordance with the terms of a contract, lease, or agreement, to the tenant or licensee, or, in the case of a lease terminated pursuant to P.L. 1971, c.318 (C.46:8-9.1), the executor or administrator of the estate of the tenant or licensee or the surviving spouse of the tenant or licensee so terminating the lease. The interest or earnings and any such deductions shall be itemized and the tenant, licensee, executor, administrator or surviving spouse notified thereof by personal delivery, registered or certified mail. Notwithstanding the provisions of this or any other section of law to the contrary, no deductions shall be made from a security deposit of a tenant who remains in possession of the rental premises.
Source Link - 2 N.J. Stat. § 46:8-19(c)(5)
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The person investing the security deposit pursuant to subsection a. or b. of this section shall notify in writing each of the persons making such security deposit or advance, giving the name and address of the investment company, State or federally chartered bank, savings bank or savings and loan association in which the deposit or investment of security money is made, the type of account in which the security deposit is deposited or invested, the current rate of interest for that account, and the amount of such deposit or investment, in accordance with the following:
…
(5) within 30 days after the transfer or conveyance of ownership or control of the property pursuant to section 2 of P.L. 1967, c.265 (C.46:8-20). All of the money so deposited or advanced may be deposited or invested by the person receiving the same in one interest-bearing or dividend yielding account as long as he complies with all the other requirements of this act. The interest or earnings paid thereon by the investment company, State or federally chartered bank, savings bank or savings and loan association, shall belong to the person making the deposit or advance and shall be paid to the tenant in cash, or be credited toward the payment of rent due on the renewal or anniversary of said tenant’s lease or on January 31, if the tenant has been given written notice after the effective date of P.L. 2003, c. 188 and before the next anniversary of the tenant’s lease, that subsequent interest payments will be made on January 31 of each year. If the person receiving a security deposit fails to invest or deposit the security money in the manner required under this section or to provide the notice or pay the interest to the tenant as required under this subsection, the tenant may give written notice to that person that such security money plus an amount representing interest at the rate of seven percent per annum be applied on account of rent payment or payments due or to become due from the tenant, and thereafter the tenant shall be without obligation to make any further security deposit and the person receiving the money so deposited shall not be entitled to make further demand for a security deposit. However, in the case of a failure by the person receiving the security deposit to pay the annual interest or to provide the annual notice at the time of the annual interest payment, if the annual notice is not also serving as a notice of change of account or institution, before the tenant may apply the security deposit plus interest on account of the rent payment or payments due or to become due on the part of the tenant, the tenant shall first give that person a written notice of his failure and shall allow that person 30 days from the mailing date or hand delivery of this notice to comply with the annual interest payment or annual notice, or both.
Source Link - 3 N.J. Stat. § 46:8-21.1
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Within 15 business days after a lease terminates as described in section 3 of P.L. 2008, c. 111(C.46:8-9.6), the owner or lessee shall have available and return to the tenant or the tenant’s designated agent upon his demand any money or advance of rent deposited as security plus the tenant’s portion of the interest or earnings accumulated thereon, including the portion of any money or advance of rent due to a victim of domestic violence terminating a lease pursuant to section 3 of P.L. 2008, c. 111(C.46:8-9.6), less any charges expended in accordance with the terms of the contract, lease or agreement and less any rent due and owing at the time of the lease termination. Such net sum shall continue to be available to be returned upon demand during normal business hours for a period of 30 days at a location in the same municipality in which the subject leased property is located and shall be accompanied by an itemized statement of the interest or earnings and any deductions. The owner or lessee may, by mutual agreement with the municipal clerk, have the municipal clerk of the municipality in which the subject leased property is located return said net sum in the same manner. Within three business days after receiving notification of the displacement, the owner or lessee shall provide written notice to a displaced tenant by personal delivery or mail to the tenant’s last known address.
Source Link - 4 N.J. Stat. § 46:8-21.1
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Within five business days after:
a. the tenant is caused to be displaced by fire, flood, condemnation, or evacuation, and
b. an authorized public official posts the premises with a notice prohibiting occupancy; or
c. any building inspector, in consultation with a relocation officer, where applicable, has certified within 48 hours that displacement is expected to continue longer than seven days and has so notified the owner or lessee in writing, the owner or lessee shall have available and return to the tenant or the tenant’s designated agent upon his demand the sum so deposited plus the tenant’s portion of the interest or earnings accumulated thereon, less any charges expended in accordance with the terms of the contract, lease or agreement and less any rent due and owing at the time of displacement.
Source Link - 5 N.J. Stat. § 46:8-21.1
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In any action by a tenant, licensee, executor, administrator or surviving spouse, or other person acting on behalf of a tenant, licensee, executor, administrator or surviving spouse, for the return of moneys due under this section, the court upon finding for the tenant, licensee, executor, administrator or surviving spouse shall award recovery of double the amount of said moneys, together with full costs of any action and, in the court’s discretion, reasonable attorney’s fees.
Source Link - 6 N.J. Stat. § 46:8-21.4
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Notwithstanding any law or rule to the contrary, the Division of Small Claims of the Superior Court, Law Division, Special Civil Part shall have jurisdiction of actions between an owner or lessee and tenant for the return of all or a part of a security deposit in which the amount in dispute, including any applicable penalties, does not exceed the sum of $5,000, exclusive of costs.
Source Link - 7 N.J. Stat. § 2A:14-1(a)
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Every action at law for trespass to real property, for any tortious injury to real or personal property, for taking, detaining, or converting personal property, for replevin of goods or chattels, for any tortious injury to the rights of another not stated in N.J.S. 2A:14-2 and N.J.S. 2A:14-3, or for recovery upon a contractual claim or liability, express or implied, not under seal, or upon an account other than one which concerns the trade or merchandise between merchant and merchant, their factors, agents and servants, shall be commenced within six years next after the cause of any such action shall have accrued.
Source Link
