New Jersey security deposits: your rights as a tenant

Security deposits in New Jersey are protected by state law. Knowing the rules helps you negotiate when you rent and get your money back when you move out.

How much can a landlord charge?

A landlord can ask for no more than 1.5 months' rent. If the rent is $2,000, the deposit can't be more than $3,000. When a lease renews, the deposit can go up, but by no more than 10% a year.

Where must the deposit be kept?

The landlord can't mix your deposit with their own money. It has to sit in a separate, interest-bearing account at a bank in New Jersey. Within 30 days of receiving it, the landlord must tell you in writing:

• the bank's name and address
• the type of account
• the current interest rate

The interest belongs to you. It's paid to you each year or credited toward your rent.

When do you get it back?

After you move out, the landlord must return the deposit plus interest within 30 days. If they keep any of it, for damage beyond normal wear and tear or unpaid rent, they must give you an itemized written list of every deduction.

Normal wear and tear, like faded paint or light carpet wear, can't be taken out of your deposit. Only damage you caused can.

What if the landlord doesn't follow the rules?

You can take the landlord to court (Small Claims, in the Special Civil Part). The law lets tenants recover twice the amount wrongfully withheld, plus court costs.

5 ways to protect your deposit

1. Record every room with dated photos and video when you move in.
2. Report existing damage to the landlord in writing and keep a copy.
3. Don't pay the deposit in cash. Use a check or another traceable method and get a receipt.
4. If you didn't get the bank notice within 30 days, ask for it in writing.
5. Leave the place clean and give your new address in writing.

Scam warning

Asking for a deposit before you've seen the place or signed a lease is the most common rental scam. If a "landlord" says they're abroad and will mail the keys once you pay, walk away.

Note: This article is general information, not legal or financial advice. Rules change, so check the official source before you decide. Last checked: October 2026.