New Jersey security deposit rules.
The New Jersey rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: N.J. Stat. Ann. § 46:8-19 · Not legal advice
How much can be charged
Capped at 1.5 months’ rent. Annual increases to the deposit are limited to 10% of the existing deposit.
When it has to come back
30 days from termination, with itemised deductions and any required interest payment.
Interest
Interest must be paid at the rate of the institution holding the deposit (or money-market rate, if applicable). Paid annually as a credit to rent or refund.
Where the money has to sit
Deposits must be held in a separate New Jersey-licensed money-market or insured savings account; the location must be disclosed within 30 days.
What catches operators out
- Annual notice with bank info, account number, rate, and amount on deposit must be sent.
- Failure to comply: tenant may apply the deposit (and 7% interest) to next month’s rent.
What this looks like with Standby in New Jersey.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and New Jersey law, so your team is not tracking interest and return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in New Jersey. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.