Mark & Galusha, Landlord Tenant Attorneys - Basking Ridge, Somerset County, New Jersey

Information is the key to any good landlord/tenant relationship. Being fully informed of your rights as a tenant and what exactly a landlord’s duties and obligations are will help to make sure you are treatly properly and fairly as a tenant.

In most, if not all, rental agreements, a tenant will be required to leave a security deposit with the landlord prior to moving in. A security deposit is made to protect the landlord and ensure that a tenant pays rent on time and keeps the rental unit in good condition. If the tenant breaches the terms of the lease agreement, for example by damages the property or not paying rent, the landlord can use the security deposit to cover what the tenant owes. The New Jersey Rent Security Deposit Act (N.J.S.A 46:8-16) specifies how a landlord must collect, maintain, and return a security deposit.

As a tenant you should be aware that the most a landlord can collect as a security deposit, without exception, is one and one-half times the monthly rent.

The New Jersey Rent Security Deposit Act requires the landlord to place the security deposit in a separate interest bearing bank account. Additionally, within 30 days after the tenant gives the deposit to the landlord, the landlord is required to give the tenant written notice of the name and address of the bank where the deposit is being kept, the amount of the deposit, the type of account, and the current interest rate for that account.

If the landlord does not either put the deposit in a separate interest bearing bank account or does not provide the tenant with proper written notice to the tenant, the tenant then has the option to tell the landlord to apply the whole deposit as well as any interest earned (or interest that should have been earned) towards future rent or any back rent owed. The tenant must make this request in writing and give the landlord 30-day notice to pay the interest or give the statutory notice. Also, once a tenant legally notifies the landlord of their desire to have deposit applied towards the rent, the landlord is barred from requesting another security deposit from the tenant as long as the tenant lives in the leased premises.

The Rent Security Deposit Act also requires landlords to take the interest earned on the deposit each year and either pay it to the tenant in cash or subtract it from the amount of rent owed.

It is important to note the Rent Security Deposit Act applies to all rental units, except for rental units falling under the "owner occupied exception". This exception covers any building that has no more than two units other than the owner-landlord’s unit. In these cases, the Rent Security Deposit Act will apply only if the tenant sends a 30-day written notice to the landlord stating that he or she wants the landlord to comply with the law’s provisions.

Mark & Galusha, Lawyers handling landlord tenant matters in Bridgewater, Somerset County, New Jersey

If you are a tenant seeking to redress mistreatment by your landlord, please contact Mark & Galusha, your landlord tenant attorneys in Bridgewater and Basking Ridge, New Jersey. For your free consultation with a lawyer from our Firm, contact us at 908-626-1001 or 973-440-2311, or tell us your story by clicking the "contact us" page.