New Jersey's Rent Security Deposit Act caps deposits at 1.5 months' rent, requires interest-bearing accounts, mandates annual notices, and limits annual increases — applying fully to Newark rentals alongside local enforcement.
Under the New Jersey Rent Security Deposit Act (NJ §46:8-19 et seq.), Newark landlords cannot collect more than 1.5 months' rent as a security deposit. Funds must be held in a separate, federally insured, interest-bearing account at a New Jersey bank, with the tenant notified in writing within 30 days of the bank name, account number, type of account, and interest rate. Annual statements of interest are required, and any deposit increase is also capped. Upon move-out, landlords must return the deposit plus interest within 30 days, less itemized lawful deductions. Newark tenants can sue in Special Civil Part for double the wrongfully withheld amount.
Failing to deposit funds properly, missing required notices, or wrongfully withholding the deposit at move-out exposes Newark landlords to double damages plus attorney fees under NJ §46:8-21.1.
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