NJ Landlord Security Deposit Restriction

Q: Gerald, I have been a landlord in NYC for years. I bought my first property in North Jersey and was wondering how much of an extra security deposit I can collect for a pet? Alan, Brooklyn, NY

A: According to NJ state law, a landlord may not require or accept more than 1 ½ times 1 month’s rent according to the terms of a lease as a security deposit. Every local real estate market has its own unique landlord-tenant laws and in NJ, the security deposit rule is clear—1 ½ months period—Even when you increase a tenant’s rent as a landlord, the additional amount of security deposit collected annually as additional security cannot be greater than 10 percent of the current security deposit. It’s important that you are fully aware of and familiar with local landlord tenant laws before you buy rental property. Thanks for your question, Alan.

For more real estate tips and information visit my blog at geraldlucas.com.