Quick Thought On Rental Properties: What is the Rent Security Deposit Act?

N.J.S.A. 46:8 19 is where you can find what is called the Rent Security Deposit Act in New Jersey.

The Rent Security Deposit Act requires the landlord to put your security deposit in a separate bank account that pays interest. The landlord must tell you in writing the name and address of the bank where the deposit is being kept, the amount of the deposit, the type of account, and the current interest rate for that account all within 30 days of getting it from the tenant, and annually thereafter.

If the landlord does not comply, the tenant can give the landlord written notice telling the landlord to use the deposit, plus seven percent interest per year, toward the rent. This is nice to know because it protects tenants from landlords who might run off with the tenants’ money.

But please be careful: when you use this act as a “sword” rather than as a “shield,” being aggressive (or worse, being a bully and using it as a “club!”) you take the grave risk of alienating your landlord. And unless you’re looking to move anyway, think twice before making an enemy out of your landlord.

Comments are closed.