State law · statute quotes
New Jersey security deposit laws for landlords and property managers
The words of New Jersey's security deposit statute on each topic, quoted verbatim with pinpoint citations and links to the official source. No summaries, no interpretation.
Reviewed by Mark Shvaya, licensed California real estate broker (DRE #02243502), who uses ProFlow360 in a rental portfolio Mark manages
Last reviewed
Quoted on this page
- Deposit limit
- Returning the deposit
- Itemized statement
- Inspections and condition reports
- Photographs
- Normal wear and tear
- Interest
- Wrongful withholding
N.J.S.A. 46:8-19 · N.J.S.A. 46:8-21.1 · N.J.S.A. 46:8-21.2 · N.J.S.A. 46:8-26
On this page
What this page covers
New Jersey's residential security deposit provisions quoted here come from N.J.S.A. 46:8-19, N.J.S.A. 46:8-21.1, N.J.S.A. 46:8-21.2, N.J.S.A. 46:8-26. Below are the statute's own words on 5 topics, each with a pinpoint citation and a link to the official text. This page does not summarize or interpret the law.
What does New Jersey law say about the amount of a security deposit?
An owner or lessee may not require more than a sum equal to 1 1/2 times 1 month's rental according to the terms of contract, lease, or agreement as a security for the use or rental of real property used for dwelling purposes. Whenever an owner or lessee collects from a tenant an additional amount of security deposit, the amount collected annually as additional security shall not be greater than 10 percent of the current security deposit.
What does New Jersey law say about returning the deposit?
Within 30 days after the termination of the tenant's lease or licensee's agreement, the owner or lessee shall return by personal delivery, registered or certified mail the sum so deposited plus the tenant's portion of the interest or earnings accumulated thereon, less any charges expended in accordance with the terms of a contract, lease, or agreement, to the tenant or licensee
What does New Jersey law say about an itemized statement of deductions?
The interest or earnings and any such deductions shall be itemized and the tenant, licensee, executor, administrator or surviving spouse notified thereof by personal delivery, registered or certified mail. Notwithstanding the provisions of this or any other section of law to the contrary, no deductions shall be made from a security deposit of a tenant who remains in possession of the rental premises.
What does New Jersey law say about interest on deposits?
The interest or earnings paid thereon by the investment company, State or federally chartered bank, savings bank or savings and loan association, shall belong to the person making the deposit or advance and shall be paid to the tenant in cash, or be credited toward the payment of rent due on the renewal or anniversary of said tenant's lease or on January 31
What does New Jersey law say about wrongful withholding?
In any action by a tenant, licensee, executor, administrator or surviving spouse, or other person acting on behalf of a tenant, licensee, executor, administrator or surviving spouse, for the return of moneys due under this section, the court upon finding for the tenant, licensee, executor, administrator or surviving spouse shall award recovery of double the amount of said moneys, together with full costs of any action and, in the court's discretion, reasonable attorney's fees.
Not quoted on this page
inspections and condition reports, photographs, normal wear and tear. That does not mean New Jersey law is silent on them; other sections or local rules may apply. Read the full statute.
Has New Jersey's security deposit law changed recently?
From our review of the official history notes: Official text (NJ Legislature bulk statutes file dated 2026-10-16) shows last amendments: 46:8-19 (2003, c.188), 46:8-21.1 (2010, c.34), 46:8-21.2 (2003, c.188). No 2024–2026 amendments to 46:8-19 through 46:8-26 appear in the official history lines.
How does ProFlow360 help you document a New Jersey tenancy?
ProFlow360 records and organizes inspection evidence; it does not tell you what the statute requires or allows. What it records, for any state:
- Move-in, routine, pre-move-out and move-out inspections with photos timestamped at capture.
- Each move-out photo beside its move-in match, filed under the tenancy.
- Itemized lines with your classification, the amount you entered, and the estimate or invoice attached.
- An issued record that is sealed, shared by a link that expires and can be revoked.
Do this in ProFlow360
Keep the photos, the call and the invoice on the same line
Every deduction line carries the move-in and move-out photos, your classification and its documents, so the record can be followed by someone who was not there.
Kitchen · counter burn, left of range
Line 2 of 5 · TEN-0418
MI-21 · Jul 12, 2024
MO-29 · Sep 30, 2026Security deposit statutes in nearby states
Sources
- 1.N.J.S.A. 46:8-19: Security deposits; investment, deposit, disposition
- 2.N.J.S.A. 46:8-21.1: Return of deposit; displaced tenant; termination of lease; civil penalties, certain.
- 3.N.J.S.A. 46:8-21.2: Limitation on amount of deposit
- 4.N.J.S.A. 46:8-26: Application of act
Sources checked October 16, 2026.
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