New Jersey law prohibits a landlord from requiring more than 11/2 times the monthly rent as security. A landlord for residential property in New Jersey is required to deposit a security deposit into an interest bearing account within 30 days of the receipt.
The above information must be provided to the tenant annually. If the information is not provided to the tenant, the tenant may elect to apply the security deposit to toward rent. The Tenant must notify the Landlord by certified mail if they are doing so.
Under New Jersey law, the landlord must also notify the tenant in writing of:
- The name and address of the bank in which the security deposit has been deposited;
- The amount deposited;
- The type of account and current rate of interest for that account.