New Jersey Security Deposit Law: A 2026 Landlord's Guide
How much can you charge in New Jersey?
1.5 months' rent. Annual deposit increases capped at 10% of the deposit.
Returning the deposit: the 30 days deadline
After the tenancy ends, New Jersey gives you 30 days to return the deposit. Doubled-damages exposure for violations. Blowing the deadline is the single most common way landlords lose deposit disputes — courts read these statutes strictly, and in many states a late or missing itemization forfeits your right to keep anything.
What you can deduct
- Unpaid rent and other amounts the lease authorizes
- Damage beyond normal wear and tear — holes in walls, broken fixtures, pet damage
- Never normal wear and tear — faded paint, carpet worn by ordinary use, minor scuffs
The dispute is almost never about the rule — it's about the evidence. Date-stamped move-in and move-out photos plus an itemized statement with receipts is what wins in small-claims court.
Interest and holding requirements
Interest or money-market earnings must be paid or credited annually. Confirm the mechanics in N.J.S.A. 46:8-19 to -26 — interest and account rules are where compliant landlords most often slip.
Track every deposit — and settle it correctly when the tenant leaves
LandlordPro tracks every deposit you hold, carries it across lease renewals, walks you through the return-vs-keep settlement with an itemized record, and reminds you of New Jersey's deadline. Free to start — up to 4 units.
Start tracking deposits free →Frequently asked questions
How much can a landlord charge for a security deposit in New Jersey?
1.5 months' rent is the statutory maximum. See N.J.S.A. 46:8-19 to -26.
How long does a New Jersey landlord have to return a security deposit?
30 days after the tenancy ends, generally with an itemized statement of any deductions. Missing the deadline can forfeit your right to deduct — and in many states triggers statutory damages.
What can a landlord deduct from a deposit in New Jersey?
Typically unpaid rent, damage beyond normal wear and tear, and other charges the lease authorizes. Normal wear and tear — faded paint, worn carpet from ordinary use — is never deductible. Documentation (move-in/move-out photos and an itemized list) is what wins disputes.
Do New Jersey landlords owe interest on security deposits?
Interest or money-market earnings must be paid or credited annually.
Handling New Jersey deposits with LandlordPro
LandlordPro keeps a ledger of every deposit you hold — who paid it, which lease it secures, and what happened to it. When a tenancy ends, the settlement workflow records what you returned and what you kept (with reasons), generates a tenant-facing settlement statement, and books any kept portion into your income reports correctly. Combined with the New Jersey eviction guide and move-in/move-out inspections with photos, you'll have the paper trail that deposit statutes reward.
LandlordPro is a software tool, not a law firm. This page summarizes statutes as of June 2026 for general information; amounts, deadlines, and requirements change. Verify N.J.S.A. 46:8-19 to -26 or consult a licensed attorney in New Jersey before acting.