New Jersey security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
{{ state }} security deposit account
The landlord must place the tenant's security deposit in New Jersey in an interest-bearing trust account in a State or federally chartered bank, savings bank, or savings and loan association located in New Jersey, or in shares of an insured money market fund established by an investment company based in New Jersey.
{{ state }} security deposit
limits
The maximum security deposit in New Jersey is 1.5 months’ rent, which is nearly on par with the national average security deposit.
{{ state }} security deposit interest
State law security deposit rules for interest rate based on the number of units you own. For >10 units, interest on security deposit in New Jersey must be similar to the average rate of interest on active interest-bearing accounts. For <10 units, the rate must be the institution's current rate for on-time payments or savings deposits.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
1.5 months' rent
Yes, if you own fewer than 10 rental units
Interest-bearing trust account in a state or federally chartered bank, savings bank, or savings and loan association in New Jersey
Unpaid rent or utilities, lease violations, damage beyond normal wear and tear, and cleaning costs
30 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in New Jersey?
The New Jersey security deposit limit is 1.5 times the monthly rent. The law doesn’t allow charging first and last month's rent plus a security deposit that exceeds this limit.
Is interest required on tenant security deposits in New Jersey?
Yes, New Jersey security deposit interest is generally required. The deposit must be held in a landlord-tenant security deposit bank account in New Jersey, which should be an interest-bearing account, and the interest belongs to the tenant.
How should I issue a security deposit receipt to tenants in New Jersey?
Within 30 days of receiving the tenant security deposit in New Jersey, notify the tenant in writing and include the name and address of the investment company, State or federally chartered bank, savings bank, or savings and loan association where the deposit is kept, type of account, the current interest rate, and the deposit amount received.
How many days to return a security deposit in New Jersey?
You must return the tenant's security deposit in New Jersey, plus any accrued interest, within 30 days after the tenant moves out or the lease terminates. If you make deductions, give tenants an itemized list with the cost and the remainder of the deposit within the same timeline.
What can a landlord deduct from a security deposit in New Jersey?
A landlord can withhold money from a security deposit for unpaid rent. damages to the house rental, apartment, or condo that exceed normal wear and tear, unpaid utility charges, costs of fixing illegal property alterations, and professional cleaning services if the tenant left the unit in an overly unclean state.
Can a security deposit be used for unpaid rent in New Jersey?
Yes, the security deposit escrow account New Jersey funds can be used for unpaid rent when the tenant moves out or breaks the lease early.
Can landlords keep a security deposit for breaking a lease in New Jersey?
Yes, a landlord's security deposit in New Jersey can be used to cover financial losses, such as the costs for re-renting the unit or lost rent, resulting from the tenant breaking the lease.
