Security Deposit Account for Landlords in New Jersey

Never chase down checks or late rent payments again. Accept
rent by ACH or card. Automated payments, fees & reminders.

security deposit Baselane app

Benefits of security deposit accounts in New Jersey

Landlords

Security deposits before buying property

Tenants

Baselane account information of renters
Security deposit rules in New Jersey
  • Limit: 1.5 months’ rent; may be increased with rent to a maximum of 10% per year
  • Return Deadline: The security deposit must be returned within 30 business days after the lease term ends
  • Acceptable Deductions: Unpaid rent, and damage beyond normal wear and tear
  • Where to Deposit: Landlords with 10 or more units must invest the deposit in insured money market funds or in another account paying quarterly interest at a rate comparable to the money market fund (NJSA 46:8-19(a)(1)). Landlords with fewer than 10 units shall deposit such money in a State or federally chartered bank, savings bank, or savings and loan association in this State insured by an agency of the federal government in an account bearing interest at the rate currently paid by such institutions and associations on time or savings deposits.(NJSA 46:8-19(a)(1)). All landlords must pay the tenant interest earned annually or credit it toward rent due.
security deposit rules in New Jersey

Why New Jersey landlords choose Baselane

Why choose rental security deposit account
  • All-in-One Platform with Banking, Rent Collection, and Accounting and more
  • Eligible to hold Security Deposits**
  • Free Rent Collection that’s landlord and renter friendly
  • Earn 4.19% APY and up to 5% Cash Back
  • Comprehensive cash flow analytics and reporting
  • Modern user interface and experience
  • Excellent Customer Support

**NOT LEGAL ADVICE. Please consult with an attorney and/or local city and state laws and requirements.

Baselane rental escrow account
Baselane Maintenance card
Take Control of Your Spend

Open a security deposit bank account and use physical & virtual debit cards with custom spend controls and automated transaction tagging with Schedule E categories.

Easily Collect and Return Security Deposits

Collect funds into an account for security deposit via Bank Transfers (ACH payments), Deposit checks, or Wire.

Multiple modes of Payment

Easy to get started

1

Open a security deposit bank
account for free

Customer total balance in virtual card
2

Create a Virtual account
(aka - rental security deposit account)

Virtual account image
3

Collect security deposits

into a virtual account

Security Deposits amount image

Explore more Baselane features

Banking
Rent Collection
Accounting
Insurance
Get Your Free Rental Security Deposit Account Today
Make it easy to manage rental security deposit accounts with Baselane's Banking accounts.
A man exploring Baselane app

Frequently asked questions

How much is a security deposit in New Jersey?

Landlords are allowed to charge a maximum of 1.5 months’ rent as a security deposit for unfurnished apartments and a maximum of 2 months’ rent for furnished apartments (N.J.S.A. 46:8-21.1).

In what other states can you use Baselane?

These are the other states where you can use Baselane: Arizona, California, Illinois, New Jersey, Texas, Virginia & all major states in the USA.

How is the security deposit amount determined when using the Baselane service?

Tenants can cause a lot of damage to your rental property, so you should aim to collect the largest security deposit the market will bear. One month’s rent is typical in most parts of the country, but you may be able to demand more if your rental property is in a particularly hot market.

Your state may set a cap on how much you can collect. Many states, including New York, Massachusetts, and Ohio, set the maximum security deposit you can collect at one month’s rent. Others, including California, Pennsylvania, and Maryland, limit security deposits to 2 months’ rent. There’s no limit on security deposits for rentals in Indiana and Florida.

How is my personal information and funds protected when using the Baselane security deposits accounts?

You should collect the security deposit and the first month’s rent when your new tenant signs the lease. Be sure to give your tenant a detailed receipt for their deposit that includes all information required by local law. Consider using Baselane for automated rent collection to get paid faster, simplify your bookkeeping and ensure you’re handling your deposits appropriately.

Do I need a new security deposit agreement if my tenant switches to month-to-month rent?

If local law states a lower maximum security deposit for month-to-month leases, you may be required to refund the excess amount. Otherwise, the initial terms of the lease usually continue to apply when switching to month-to-month, and no change to the security deposit is required.

When can I collect the security deposit?

You should collect the security deposit and the first month’s rent when your new tenant signs the lease. Be sure to give your tenant a detailed receipt for their deposit that includes all information required by local law. Consider using Baselane for automated rent collection to get paid faster, simplify your bookkeeping and ensure you’re handling your deposits appropriately.