Templates / Security deposit laws / New Jersey
New Jersey security deposit and move-in inspection rules
What New Jersey law says about the deposit — limit, return deadline, deductions, inspections and penalties — taken only from the text of the Rent Security Deposit Act, N.J.S.A. 46:8-19 to 46:8-26, with a link to the statute text for every rule (the legislature's own site where it can be opened; otherwise a public copy of the same text).
Checked word for word against the statute text on November 2, 2026. This is a plain-English summary, not legal advice; city or county rules and your lease can add to it.
At a glance
| Deposit limit | 1½ months' rent; any later increase capped at 10% of the deposit a year N.J.S.A. 46:8-21.2 |
|---|---|
| Return deadline | 30 days after the lease ends, by personal delivery or registered/certified mail N.J.S.A. 46:8-21.1 |
| Itemized list | Interest earned and every deduction, itemized N.J.S.A. 46:8-21.1 |
| Interest | Required: the tenant gets the account's interest every year (cash or rent credit) N.J.S.A. 46:8-19(c) |
| Where the deposit is held | In trust, in a NJ bank or money market account; written notice of the bank within 30 days N.J.S.A. 46:8-19(a)-(c) |
| Move-in documentation | No state requirement details |
| Penalty | Double the amount withheld, plus court costs (attorney's fees at the court's discretion) N.J.S.A. 46:8-21.1 |
How much can the deposit be?
The deposit for a home or apartment cannot be more than 1½ times one month's rent. If the landlord later asks for more security (for example after a rent increase), the extra collected in any year cannot be more than 10% of the current deposit.
“An owner or lessee may not require more than a sum equal to 1 1/2 times 1 month's rental according to the terms of contract, lease, or agreement as a security for the use or rental of real property used for dwelling purposes.”
“Whenever an owner or lessee collects from a tenant an additional amount of security deposit, the amount collected annually as additional security shall not be greater than 10 percent of the current security deposit.”
Where the deposit must be kept
The deposit stays the tenant's money, held in trust, and cannot be mixed with the landlord's own funds. A landlord with 10 or more rental units must put it in an insured New Jersey money market fund or a variable-rate money-market-type account at a New Jersey bank; a smaller landlord must use an interest-bearing account at a New Jersey bank or savings institution. Within 30 days of receiving the deposit (and on moving it, on each annual interest payment and after a sale) the landlord must tell the tenant in writing the bank's name and address, the type of account, its current interest rate and the amount deposited.
“shall continue to be the property of the person making such deposit or advance and shall be held in trust by the person with whom such deposit or advance shall be made for the use in accordance with the terms of the contract, lease or agreement and shall not be mingled with the personal property or become an asset of the person receiving the same.”
“This subsection shall not apply to persons receiving money for less than 10 rental units except where required by the Commissioner of Banking and Insurance by rule or regulation.”
“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”
“within 30 days of the receipt of the security deposit from the tenant;”
Move-in inspection and photos
No state statute. The Rent Security Deposit Act (N.J.S.A. 46:8-19 to 46:8-26) contains no move-in or move-out inspection, checklist or condition-report requirement.
When the deposit must be returned
Within 30 days after the lease ends, the landlord must return the deposit plus the tenant's share of the interest, minus any lawful charges, by personal delivery or by registered or certified mail. Shorter deadlines apply when the tenant is displaced by fire, flood, condemnation or evacuation (5 business days, on demand) and when a domestic-violence victim ends the lease under N.J.S.A. 46:8-9.6 (15 business days, on demand).
“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”
What the itemized statement must include
The interest earned and every deduction must be itemized, and the tenant notified of them by personal delivery or by registered or certified mail. The statute sets no other format for the list.
“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.”
What can and cannot be deducted
The Act lets the landlord keep only 'charges expended in accordance with the terms of' the lease; it does not list allowed deductions or mention normal wear and tear. Nothing may be deducted while the tenant still lives in the unit.
“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.”
Interest on the deposit
Yes. The interest the account earns belongs to the tenant and must be paid every year, in cash or as a credit toward rent, on the lease renewal or anniversary date, or on January 31 if the landlord has given written notice of that date. If the landlord does not invest the deposit as required, give the notice or pay the interest, the tenant may tell the landlord in writing to apply the deposit plus 7% a year interest to rent, and the landlord loses the right to demand a new deposit. For a missed annual payment or annual notice, the tenant must first give written notice and allow 30 days.
“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”
“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”
Penalties for keeping a deposit wrongly
If a court finds for the tenant in a suit to get the deposit back, it must award double the amount owed, plus full court costs, and may add reasonable attorney's fees. Suits over $5,000 or less (including penalties) can go to the Small Claims Division of the Superior Court. A landlord who willfully withholds a deposit paid for a tenant on state or federal assistance faces a civil penalty of $500 to $2,000 per offense, and knowingly diverting deposit money is a disorderly persons offense (N.J.S.A. 46:8-25).
“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.”
“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.”
Small landlords
The Act covers every rental used as a home except an owner-occupied building with no more than two rental units, and even there it applies once the tenant gives the landlord 30 days' written notice invoking it. Separately, the money-market investment rule in § 46:8-19(a) applies only to landlords with 10 or more units; smaller landlords still need an interest-bearing bank account (§ 46:8-19(b)).
“The provisions of this act shall apply to all rental premises or units used for dwelling purposes except owner-occupied premises with not more than two rental units where the tenant has failed to provide 30 days written notice to the landlord invoking the provisions of this act.”
If the property is sold
When the property is sold or the lease assigned (or sold at foreclosure), the old owner must turn the deposit and the tenant's interest over to the new owner within five days and notify the tenant by registered or certified mail with the new owner's name and address. The new owner is responsible for the deposit, the notices, the interest and the return, whether or not the money was actually transferred.
“Whether or not the deposit plus accumulated interest are so transferred, the grantee, assignee or purchaser of the leased premises is nevertheless responsible for the proper investment of the security deposit, giving all notices and paying interest”
“deal with the security deposit by turning over to his or its grantee or assignee, or to the purchaser at the foreclosure sale the sum so deposited, plus the tenant's portion of the interest or earnings accumulated thereon, and notify the tenant or licensee by registered or certified mail of such turning over and the name and address of such grantee, assignee or purchaser.”
Record the condition on move-in day
Most deposit disputes come down to one question: what did the place look like when the tenant moved in? A dated, room-by-room record signed by both sides answers it.
- Walk every room together before the keys change hands — walls, floors, doors, windows, fixtures, appliances.
- Photograph each defect close up and each room wide, so the photos show where the defect is.
- Note meter readings and the number of keys, fobs and remotes.
- Both sign and date the checklist; each keeps a copy.
- At move-out, repeat the same walk in the same order and compare.
Rental Inspection: Move In/Out is an iPhone app that does the same walk with photos placed in the report.
- Room-by-room checklist with photos
- Both sides sign on the phone
- One dated PDF for the deposit
Questions
How much can a landlord charge for a security deposit in New Jersey?
The deposit for a home or apartment cannot be more than 1½ times one month's rent. If the landlord later asks for more security (for example after a rent increase), the extra collected in any year cannot be more than 10% of the current deposit.
How long does a landlord have to return a security deposit in New Jersey?
Within 30 days after the lease ends, the landlord must return the deposit plus the tenant's share of the interest, minus any lawful charges, by personal delivery or by registered or certified mail. Shorter deadlines apply when the tenant is displaced by fire, flood, condemnation or evacuation (5 business days, on demand) and when a domestic-violence victim ends the lease under N.J.S.A. 46:8-9.6 (15 business days, on demand).
What can a landlord deduct from a security deposit in New Jersey?
The Act lets the landlord keep only 'charges expended in accordance with the terms of' the lease; it does not list allowed deductions or mention normal wear and tear. Nothing may be deducted while the tenant still lives in the unit.
Does a New Jersey landlord have to pay interest on a security deposit?
Yes. The interest the account earns belongs to the tenant and must be paid every year, in cash or as a credit toward rent, on the lease renewal or anniversary date, or on January 31 if the landlord has given written notice of that date. If the landlord does not invest the deposit as required, give the notice or pay the interest, the tenant may tell the landlord in writing to apply the deposit plus 7% a year interest to rent, and the landlord loses the right to demand a new deposit. For a missed annual payment or annual notice, the tenant must first give written notice and allow 30 days.
Is a move-in inspection required in New Jersey?
No state statute. The Rent Security Deposit Act (N.J.S.A. 46:8-19 to 46:8-26) contains no move-in or move-out inspection, checklist or condition-report requirement.
What happens if a New Jersey landlord keeps a deposit wrongly?
If a court finds for the tenant in a suit to get the deposit back, it must award double the amount owed, plus full court costs, and may add reasonable attorney's fees. Suits over $5,000 or less (including penalties) can go to the Small Claims Division of the Superior Court. A landlord who willfully withholds a deposit paid for a tenant on state or federal assistance faces a civil penalty of $500 to $2,000 per offense, and knowingly diverting deposit money is a disorderly persons offense (N.J.S.A. 46:8-25).
Sources
- N.J.S.A. 46:8-19 to 46:8-26 (Rent Security Deposit Act), official text — The NJ Legislature's official statutes text file (STATUTES.TXT, dated Aug. 29, 2026, 'updated through P.L.2025, c.405'). Read from the Wayback Machine capture of Aug. 30, 2026: the Legislature's sites did not answer from our machine.
- N.J.S.A. 46:8-19 — FindLaw's copy, linked per section for reading; every quote on this page was checked against the official text file.
- N.J.S.A. 46:8-20
- N.J.S.A. 46:8-21
- N.J.S.A. 46:8-21.1
- N.J.S.A. 46:8-21.2
- N.J.S.A. 46:8-21.4
- N.J.S.A. 46:8-26
Other states
14 business days after move-out and the tenant's demand, with an itemized list of deductionsCalifornia
21 days after the tenant moves out, with an itemized statementFlorida
15 days if there is no claim; a claim notice must go by certified mail within 30 daysGeorgia
30 days after the landlord gets the unit back, with a written statement of reasons for anything keptIllinois
Itemized damage statement within 30 days of move-out; with no statement, the full deposit within 45 daysMassachusetts
30 days after the tenancy ends, with a sworn itemized list for any damage deductionNew York
14 days after the tenant moves out, with an itemized statement — or the landlord loses the right to keep any of itPennsylvania
30 days after the lease ends or the unit is surrendered, with a written list of damagesTexas
30 days after the tenant moves out — once the tenant gives a written forwarding addressWashington
30 days after the lease ends and the tenant moves out, with a full and specific statement