New Jersey regulates security deposits, and the Law Offices of Kevin Crawford Orr can help Landlords comply with the regulations, and to prevent Tenants from declaring a forfeiture of the security deposit and charging the Landlord seven (7%) interest on the entire deposit.
The New Jersey Security Deposit law, known as The Rent Security Deposit Act, specifies how a landlord must collect and maintain (N.J.S.A. 46:8-19), and return a security deposit (N.J.S.A. 46:8-21.1). The security deposit does not belong to the landlord. It is to be held in a bank, in a separate account known as a Landlord-Tenant account or some other name. A security deposit is made to protect the landlord against the tenant's failure to follow his or her responsibilities as stated in the lease. This includes nonpayment of rent, or damage done to the apartment by the tenant, other than ordinary wear and tear.
Landlords of all sizes need to understand how to comply with New Jersey's Rent Security Deposit Act.If you are a Landlord in an owner-occupied building with not more than two rental units (i.e., a 2 or 3-family building) the Rent Security Deposit Act is not automatically applicable. However, it can be made applicable if you use a lease that makes it applicable or if a tenant gives you written notice requesting that it be made applicable.
We protect the rights of both landlords and tenants in how security deposits are held. Contact us today for answers to all of your landlord-tenant law questions.