New Jersey Statewide Rule

New Jersey Rent Security Deposit Act (N.J.S.A. 46:8-19 to -26)

Some RestrictionsApplies statewide across New Jersey (2026)

Key Facts

Deposit cap: 1.5 times one month's rent; additional deposit limited to 10% increase per year
Return deadline: 30 days after tenancy ends (5 business days if tenant displaced by fire/flood/condemnation/evacuation)
Itemized statement: Required - interest and all deductions must be itemized in writing
Statute: N.J.S.A. 46:8-19 to 46:8-26 (Rent Security Deposit Act); cap at 46:8-21.2; return at 46:8-21.1
Penalty: Double the amount wrongfully withheld, plus full costs and (court's discretion) reasonable attorney's fees

Last verified: September 5, 2026

Summary

New Jersey caps a residential security deposit at 1.5 times one month's rent, and any later additional deposit may rise by no more than 10% per year. After a tenancy ends, the landlord must return the deposit plus the tenant's interest, minus itemized deductions, within 30 days. Wrongful withholding exposes the landlord to double damages.

An owner or lessee may not require more than a sum equal to 1 1/2 times 1 month's rental according to the terms of contract, lease, or agreement as a security for the use or rental of real property used for dwelling purposes. Whenever an owner or lessee collects from a tenant an additional amount of security deposit, the amount collected annually as additional security shall not be greater than 10 percent of the current security deposit.

View official code

Full Breakdown

Under N.J.S.A. 46:8-21.2, an owner "may not require more than a sum equal to 1 1/2 times 1 month's rental" as a deposit, and additional security collected later "shall not be greater than 10 percent of the current security deposit" annually. The deposit must be held in an interest-bearing account, with the interest belonging to the tenant (46:8-19). Under 46:8-21.1, within 30 days after the lease terminates the landlord must return the deposit plus the tenant's share of interest, "less any charges expended," by personal delivery or certified mail, and "the interest or earnings and any such deductions shall be itemized." Deposits drop to five business days where a tenant is displaced by fire, flood, condemnation, or evacuation.

Violations & Penalties

Under N.J.S.A. 46:8-21.1, in a tenant's successful action for return of the deposit the court "shall award recovery of double the amount of said moneys, together with full costs of any action and, in the court's discretion, reasonable attorney's fees." A landlord who fails to invest the deposit or send required notices lets the tenant apply the deposit plus 7% interest to rent (46:8-19).

Frequently Asked Questions

How much can a landlord charge for a security deposit in New Jersey?

No more than 1.5 times one month's rent under N.J.S.A. 46:8-21.2. If the landlord later collects additional security, the amount added in any year cannot exceed 10% of the current deposit. The deposit must be kept in an interest-bearing account, and the interest belongs to the tenant.

How long does a landlord have to return a security deposit in New Jersey?

Within 30 days after the lease ends, the landlord must return the deposit plus the tenant's interest, minus itemized deductions, by personal delivery or certified mail (N.J.S.A. 46:8-21.1). The deadline shrinks to five business days when the tenant is displaced by fire, flood, condemnation, or evacuation.

What can a landlord deduct from a security deposit in New Jersey?

Only charges actually "expended in accordance with the terms" of the lease - typically unpaid rent and the cost of repairing damage beyond ordinary wear and tear. Every deduction and the interest must be itemized in writing. No deductions may be taken from the deposit of a tenant who remains in possession.

Sources

N.J.S.A. 46:8-19 to 26 - Security Deposit Law (NJ Dept. of Community Affairs)

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