New Jersey security deposit law: the 30-day rule, interest, and a double-damages remedy that needs no bad faith
Last reviewed: · get-book.com
New Jersey gives a landlord 30 days after the lease terminates to return the deposit plus your share of any interest, itemizing any deductions. The remedy is unusually tenant-friendly: a court must award double the amount wrongfully withheld, and no proof of bad faith is required.
The rule
Within 30 days after the lease ends the landlord must return the deposit plus your share of any interest, less lawful charges, and itemize any deductions. N.J.S.A. 46:8-21.1.
The refund must be available for collection for 30 days at a location in the same municipality — and no deductions may be taken from the deposit of a tenant who is still in possession.
The penalty
A court must award double the amount wrongfully withheld, together with full costs and, at its discretion, reasonable attorney’s fees. No proof of bad faith is required. N.J.S.A. 46:8-21.1.
Separately, if the deposit was never put into an interest-bearing account or the required notices were never sent, you may direct that the deposit plus 7% per year be credited to your rent. N.J.S.A. 46:8-19.
The cap and where a claim goes
The deposit is capped at 1.5 months’ rent (N.J.S.A. 46:8-21.2). Deposit claims go to the Special Civil Part, Small Claims Section (limit $5,000); filing fees run roughly $15 to $50 depending on the amount claimed.
Common questions
- How long does a New Jersey landlord have to return a deposit?
- 30 days after the lease terminates, under N.J.S.A. 46:8-21.1 — the deposit plus your share of any interest, with any deductions itemized. The refund must remain available for collection for 30 days at a location in the same municipality.
- What if my landlord wrongfully keeps part of the deposit in New Jersey?
- A court must award double the amount wrongfully withheld, plus full costs and, at its discretion, reasonable attorney’s fees — no proof of bad faith is required. N.J.S.A. 46:8-21.1.
- Does a New Jersey deposit earn interest?
- Yes — the return includes your share of any interest. If the deposit was never put into an interest-bearing account or the required notices were never sent, you can instead direct that the deposit plus 7% per year be credited to your rent (N.J.S.A. 46:8-19).
- Is this legal advice?
- No. This page is general information about New Jersey law, with sources. It is not tailored to your situation and we are not a law firm.
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This page is general information for a general audience and is not legal advice. It is not tailored to your situation and we are not a law firm. Laws change and vary by county — for your own situation, consult a licensed attorney.