How do I dispute a security deposit return in New Jersey?

New Jersey's Rent Security Deposit Act (NJSA 46:8-19 to 46:8-26) is one of the most tenant-protective in the country.

1. 1.5-Month Deposit Cap

The total deposit cannot exceed 1.5 months' rent. Annual increases are limited to 10% of the existing deposit (NJSA 46:8-21.2).

2. Escrow and Interest

Deposits must be held in a separate interest-bearing money-market or insured bank account. Landlords with fewer than 10 units can use a regulated bank account; larger landlords must use a money-market fund. Tenants are entitled to interest annually, paid as a credit toward rent or in cash (NJSA 46:8-19).

3. 30-Day Return Rule

Within 30 days after termination, the landlord must return the deposit plus accrued interest, less an itemized list of charges, by personal delivery, registered, or certified mail (NJSA 46:8-21.1).

4. Allowed vs. Prohibited Deductions

Permitted: unpaid rent, damages beyond ordinary wear and tear, costs of unpaid utilities. Prohibited: ordinary wear and tear, repainting after a long tenancy, routine cleaning.

5. Double-Damage Penalty

A landlord who wrongfully withholds is liable for double the amount wrongfully withheld, plus court costs and reasonable attorney's fees (NJSA 46:8-21.1).

6. Small Claims & Limitations

File in NJ Special Civil Part Small Claims Section (up to $5,000) or DC-LT Special Civil Part (up to $20,000). The statute of limitations is 6 years for written contracts (NJSA 2A:14-1).

This is legal information, not legal advice.