Security Deposits are one of the easiest ways
to protect your investment.
Make sure to require the maximum Security Deposit amount allowed in NJ – one and one half of the monthly rent.
This can be used to cover tenant related damages to the property.
Also important: Conduct thorough move-in inspections with pictures and comments acknowledged by the tenant and yourself.
Quick Facts:
- Money must be deposited into an escrow bank account in the name of the Landlord and the Tenant
- Interest must be tracked and awarded to the tenant annually
- Tenant must be notified within 30 days of payment of the deposit where the money is being held
- Pet deposit is allowed but it can not exceed the one and one half month rule
- Alternatively you can increase the rent for a pet to cover pet damage
- Once tenant vacates a property, the security deposit must be returned or they must be notified of charges within 30 days
Have questions about security deposits in NJ?
We are happy to provide some free consultative advice!
