Security Deposit in New Jersey
State-specific overview · Property & Real Estate
Landlords must place deposits in escrow accounts and return them within 30 days with interest.
How New Jersey treats Security Deposit
New Jersey requires landlords to deposit security deposits in an escrow account at a New Jersey bank and return the full amount plus accrued interest within 30 days of lease termination. The landlord must provide written notice of the account location and bank details. Deductions for damages must be itemized, and the tenant may sue for triple damages if the landlord fails to comply with escrow requirements.
The general definition of Security Deposit
Money a tenant pays upfront to a landlord as a guarantee against damage or unpaid rent.
A security deposit is cash that a tenant gives to a landlord at the start of a lease, held as insurance against property damage or unpaid rent. The landlord must keep this money in a separate account and return it to the tenant when the lease ends, minus any deductions for legitimate damages or unpaid bills. Most states have strict rules about how quickly landlords must return deposits (often 30–45 days) and require them to itemize any deductions. If a landlord wrongfully keeps the deposit, the tenant can sue for the full amount plus penalties.
Read the full Security Deposit entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in New Jersey.