New Jersey Security Deposit Laws

New Jersey caps security deposits at 1.5 months' rent, requires them to be held in a separate interest-bearing account with annual interest payments to the tenant, and mandates return within 30 days with itemized deductions.

Key Rules

Limit
1.5 months' rent maximum
Return Deadline
30 days after end of tenancy (5 days if displaced by disaster)
Itemization Required
Yes — written itemized statement of deductions required
Interest Required
Yes — landlord must place deposit in an interest-bearing account and credit interest annually
Bad Faith Penalty
Tenant may recover double the deposit amount if landlord fails to comply

Some citations below have not been confirmed against their official source. Confirm current requirements with local legal aid or an attorney.

Applicable Statutes

N.J. Stat. Ann. § 46:8-19

Security deposit limit: 1.5 months' rent for initial deposit. Landlord may not charge more than one-half month's rent for annual increases. Total deposit may not exceed one and one-half months' rent.

Not confirmed against its source · checked

N.J. Stat. Ann. § 46:8-21.1

Return of security deposit: landlord must return deposit within 30 days of the end of tenancy (5 days if tenant was displaced by fire, flood, or condemnation). Itemized statement of deductions required.

Not confirmed against its source · checked

Legal Aid Resources

Read the Full Security Deposit Laws Guide

Our comprehensive guide covers federal law, common defenses, real-world examples, and what to do if your rights are being violated.

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