N.J. Stat. Ann. § 46:8-1 et seq. § 46:8-21.2
Limitation on amount of deposit
Operative Text
4. 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. L.1971,c.223,s.4; amended 2003, c.188, s.5.
Under N.J.S.A. 46:8-21.2, a landlord or sublessor renting residential property in New Jersey may not collect a security deposit exceeding one and one-half times one month's rent as established in the lease or rental agreement. If the landlord later collects additional security deposit amounts—for example, when rent increases—the annual increase to the security deposit is capped at 10 percent of the existing security deposit balance. This provision sets a ceiling on both the initial deposit and any incremental additions over time.
Plain English — not legal advice.
Operators subject to N.J.S.A. 46:8-21.2 generally set the initial security deposit at or below one and one-half times the monthly rent stated in the lease. When adjusting the security deposit in subsequent years—such as after a rent increase—compliant operators limit any single-year increase to no more than 10 percent of the deposit amount already held. Keeping clear written records of the deposit amount collected and any annual adjustments helps demonstrate compliance with this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
N.J.S.A. 46:8-21.2 gives residential tenants in New Jersey a right not to be charged a security deposit greater than one and one-half times one month's rent at the start of a tenancy, and limits any annual increase to the deposit to 10 percent of the current deposit balance. If a landlord collects more than these amounts, tenants may have grounds to seek a refund of the excess or raise the overcharge as a defense in a legal proceeding. Tenant-rights organizations in New Jersey and the state's court system are among the general resources available to those who believe this provision has been violated.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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