NJ Statute 46:8-19 caps residential security deposits at 1.5 months rent, requires interest-bearing accounts at NJ banks, and mandates return within 30 days of move-out with itemized deductions.
Landlords in Jersey City must place deposits in NJ-chartered, interest-bearing accounts within 30 days of receipt and notify tenants in writing of the bank name, account number, and applicable interest rate. Annual interest accrues to the tenant. Upon move-out, landlords return deposits within 30 days with itemized deductions for damages beyond ordinary wear and tear. Late returns or wrongful withholding entitle tenants to double damages plus attorneys fees in Hudson County Superior Court. Increases mid-tenancy require updated written disclosures. Sale of the building obligates the seller to transfer deposits to the buyer.
Failure to return deposits within 30 days, or wrongful withholding, exposes landlords to double damages, court costs, and tenant attorneys fees under NJ §46:8-21.1.
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