Getting The Deposit Back
N.J.S.A. 46:8-21.1 — back within 30 days by delivery or certified mail, and double if it is not
No more than 1 1/2 times a month's rent. In New Jersey, a landlord may not require more than 1 1/2 times one month's rent as a security deposit, and any additional deposit collected each year cannot exceed 10 percent of the current deposit.
The deposit stays the tenant's property, held in trust and never mingled with the landlord's own. The landlord puts it in an interest bearing account with a New Jersey bank or savings institution, or an insured money market fund, and within 30 days tells the tenant in writing the institution's name and address, the type of account, the current interest rate and the amount. The interest belongs to the tenant, paid in cash or credited toward rent each year.
If the landlord does not, the deposit becomes rent. If the landlord fails to deposit it properly, give the notice or pay the interest, the tenant may give written notice that the deposit, plus interest at seven percent a year, be applied to rent, and the landlord cannot demand another deposit. For a missed annual payment or annual notice, the tenant first gives written notice and allows 30 days to comply.
Within 30 days after the lease ends, the landlord returns the deposit with the tenant's interest, less charges the lease allows, by personal delivery, registered or certified mail, with the interest and any deductions itemized. Nothing may be deducted while the tenant is still in possession.
Double the amount, and costs. When a court finds for the tenant in an action for the return of the deposit, it awards double the amount owed, with full costs and, in the court's discretion, reasonable attorney's fees.
The small claims division of the Special Civil Part hears deposit cases where the amount in dispute, penalties included, is no more than $5,000. The law applies to all rental units except owner occupied premises with no more than two rental units, where the tenant has not given 30 days' written notice invoking it.
Sources for this section (5)
- N.J.S.A. 46:8-21.1 — Return of deposit
- N.J.S.A. 46:8-21.2 — Limitation on amount of deposit
- N.J.S.A. 46:8-19 — Security deposits; investment, deposit, disposition
- N.J.S.A. 46:8-21.4 — Small claims jurisdiction of actions on security deposits
- N.J.S.A. 46:8-26 — Application of the security deposit act
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed New Jersey attorney.