New Jersey sets no statewide rent cap, but a landlord cannot raise a month-to-month tenant's rent until the existing term is ended by a notice to quit and a notice of increase giving one full rental period's notice. Under N.J.S.A. 2A:18-61.1(f) the increase may not be unconscionable, and many municipalities impose local rent control.
New Jersey has no statewide percentage limit on rent, yet a periodic tenancy must be terminated before new rent applies. Under N.J.S.A. 2A:18-61.2 the landlord must serve a written notice to quit and notice of increase at least one month before the change, ending the old tenancy and offering a new one. N.J.S.A. 2A:18-61.1(f) permits eviction for non-payment of an increase only where it "is not unconscionable and complies with any and all other laws or municipal ordinances governing rent increases." Courts weigh the size of the hike, the landlord's costs, comparable rents, and whether it shocks the conscience. Over 100 municipalities, including Newark and Jersey City, enforce rent-control ordinances capping the percentage.
An increase imposed without a valid notice to quit, or one that is unconscionable or exceeds a local rent-control cap, is unenforceable; the tenant need not pay it and it cannot be a ground for eviction under N.J.S.A. 2A:18-61.1(f).
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