A New Jersey lease agreement is the backbone of your rental agreement. Whether you’re leasing a high-rise in Newark or a beach cottage on the Jersey shore, having the right lease agreement in place protects your property and helps keep you compliant.
Disclosures (5)
New Jersey requires landlords to provide specific disclosures to tenants before they move in. These aren’t just legal boxes for you to check as a landlord; they provide the necessary information your tenant needs and keep your lease enforceable.
- Lead-based paint: Federal law requires landlords to disclose any known information about lead-based paint in the unit, as well as its hazards.
- Flood risk: New Jersey landlords must disclose to tenants if the unit is in a flood zone and should specify the availability of flood insurance (NJ Stat. § 46:8-50).
- Truth in Renting Guide: Landlords must give their landlords a copy of the Truth in Renting Guide, which details tenants’ rights. Landlords must also update their copy within 30 days of a new version coming out (NJ Stat. § 46:8-46).
- Window guards: Landlords must disclose in their New Jersey lease agreement that they are responsible for providing tenants with window guards upon written request (NJ Admin. Code § 5:10-27.1).
- Information on crime insurance: Landlords of multifamily buildings must provide tenants with information on crime insurance through the Federal Crime Insurance Program (NJSA Sect. 46:8-39).
Optional Disclosures and Addenda
Although optional disclosures may not be required or mandated, including them with your New Jersey lease agreement is a good idea. These optional disclosures help with tenant relationships and landlord liability.
Asbestos: Informs tenants of any issues related to asbestos on the property, as well as strategies to minimize risk.
Bed bugs: Informs tenants of any known or suspected bed bug infestations in the unit or in adjacent units.
Landlord’s name and address: Provides tenants with the landlord’s contact information for ease of communication. Landlords often include additional contact information, such as phone numbers or an email address.
Late/returned check fees: Specifies late or returned check fees related to rent payments. In New Jersey, landlords are not limited on how much they can charge as a late fee. For returned checks, landlords can recover three times the amount of the check once the check is 35 days past due (N.J. Stat. § 2A:32A-1(a)).
Medical marijuana use: Outlines the unit’s policy on the use of medical marijuana, including any limitations or restrictions.
Mold disclosure: Informs tenants of any mold issues in the unit, along with remediation strategies.
Move-in checklist: Outlines the condition of the unit at move-in, including any damages. Landlords can use this checklist at move-out to compare conditions and calculate deductions.
Non-refundable fees: If there are any non-refundable fees in the lease, you must disclose these to your tenant, and they must agree to them.
Shared utilities: If any units share a utility meter, landlords must outline how they will split charges among tenants.
Smoking: Outlines the smoking policy for the unit, including any designated smoking areas on the property.
Consequences of Not Including Mandatory Disclosures
If you leave out a required disclosure with your New Jersey lease agreement, you risk tenant disputes, financial penalties, or even legal challenges. A complete lease with all the necessary disclosures helps keep you in good standing.
Security Deposit Regulations in New Jersey
New Jersey has some of the most stringent security deposit regulations in the US. Landlords must follow specific rules around the maximum amount collected, returning the security funds, and more.
Maximum amount: Landlords may charge up to 1.5 times the monthly rent as a security deposit (NJ Stat. § 46:8-21.2).
Deposit receipt: Landlords must give tenants details of where their security deposit is within 30 days of collecting it (NJ Stat. § 46:8-19).
Interest payments: New Jersey landlords must hold the tenant’s security deposit in an interest-bearing account (NJ Stat. § 46:8-19).
Security deposit return: Landlords must return a tenant’s security deposit, minus any deductions, within 30 days of lease termination (NJ Stat. § 46:8-21.1).
Deductions: Landlords should maintain detailed records of any deductions withheld, along with supporting documentation, to prevent potential disputes with tenants.
Rent Payment Regulations
From Trenton rowhouses to Hoboken apartments, collecting rent in New Jersey comes with specific rules. Knowing the rules helps make sure that you are always in compliance with state laws.
Rent control/stabilization: Rent control does not exist state-wide in New Jersey; however, some cities have rent control regulations that limit a landlord’s ability to increase the rent between lease terms. Always follow local laws when setting your rent.
Late rent fees: New Jersey does not impose a limit on late rent fees.
Grace period: Landlords must offer tenants a 5-day grace period to pay their rent after the due date, and they are not allowed to charge late fees during this time (NJ Stat. § 2A:42-6.1).
Tenant’s right to withhold rent: If a landlord fails to maintain the property, tenants may withhold rent in New Jersey (NJ Stat. § 2A:42-85).
Violations
When tenants violate their lease, New Jersey has clear, step-by-step guidelines for landlords to take to get back on track. Adhering to the process allows you to enforce rules legally and effectively.
Lease violation: If a tenant violates any part of their lease, the landlord may issue a notice to quit to start the legal eviction process (NJ Stat. § 2A:18-61.1).
Missed rent payment: If a tenant misses a rent payment, landlords can pursue a legal eviction by issuing a notice to quit (NJ Stat. § 2A:18-61.1).
Lease abandonment: If a tenant abandons their New Jersey lease agreement before the end of its term, they are still financially responsible for the remainder of the lease. The landlord is accountable for helping to mitigate these expenses, however, and should always attempt to re-rent the unit (Sommer v. Kridel).
Self-help evictions: Self-help evictions are illegal in New Jersey. Landlords should never attempt to remove tenants on their own.
Terminating a Lease
Terminating a New Jersey lease agreement requires proper notice and procedures. When done correctly, the process is straightforward and avoids disputes and confusion.
Standard lease: Tenants can terminate their New Jersey lease agreement early if they meet certain conditions, such as active duty military service, domestic violence, and landlord harassment (NJ Stat. Ann. § 46:8 & § 2A:42-88).
Month-to-month: Either a landlord or a tenant can terminate a month-to-month rental agreement with at least 30 days’ notice to the other party (NJ Department of Community Affairs Division of Codes and Standards).
Property abandonment: If a tenant leaves property behind, the landlord must send a written notice to the tenant and give them at least 30 days to reclaim their possessions. If the tenant does not respond within this time, the landlord may sell or dispose of the items (NJ Stat. 2A:18-72).
Renewing a Lease
Renewals give tenants a chance to keep good tenants and update the lease terms as needed. But there are still rules that landlords must follow.
Notice requirements: Landlords must give tenants a minimum notice period if they do not intend to renew their New Jersey lease agreement (NJ Stat. 2A:18-56).
Renewals: New Jersey landlords are required to renew a tenant’s lease unless there is a justifiable cause for eviction, such as non-payment of rent or other violations (NJ Stat. § 2A:18-61.1).
Landlord’s Access to Property
Even in the most densely populated areas, tenants deserve the right to privacy and quiet enjoyment of their home. New Jersey law outlines when and how landlords may enter the property, ensuring that you strike a balance between tenant trust and property management.
Immediate access: In an emergency or when the safety of others is in danger, landlords are granted immediate access to the property and are not required to give notice to the tenants (N.J. Ad. Code 5:10-1.1 et seq.).
Notice requirements: Generally, landlords may not enter a rental unit without first obtaining the tenant’s consent or a court order (N.J. Stat. § 2A:39-1).
Harassment: Landlords who fail to follow these rules may be held liable for landlord harassment. In these cases, tenants can terminate their lease early, without penalty.
