N.J.S.A. 46:8-21.1: New Jersey security deposit rules in plain English
What N.J.S.A. 46:8-21.1 says about New Jersey security deposits: the cap, the deadline to return the deposit, itemized deductions and interest. Every fact below comes from our statute-checked data. Last verified 2026-10-22.
Quick answer
- Return deadline
- 30 days
- The landlord must return the deposit plus interest, less itemized deductions, by personal delivery or registered or certified mail.
- Shorter deadlines apply after displacement by fire, flood, condemnation or evacuation (5 business days) and after a domestic-violence lease termination (15 business days).
- If you win in court because the landlord withheld the deposit wrongfully, you can recover twice the amount owed plus court costs.
- Maximum deposit
- 1.5 times one month's rent. If the landlord collects more security later, the extra collected in any year may not exceed 10% of the current deposit (46:8-21.2). The deposit stays the tenant's money, held in trust and not mixed with the landlord's own funds; it must sit in an interest-bearing account at a New Jersey bank or savings institution (landlords with 10+ units: an insured money-market fund or variable-rate account) (46:8-19(a), (b)).
- Itemized list
- Yes, an itemized list of deductions is required
- Interest
- Yes. The interest belongs to the tenant and is paid each year in cash or credited toward rent on the lease renewal or anniversary (or each January 31 after written notice). Within 30 days of receiving the deposit (and on moving it, on each annual interest payment and on sale of the property) the landlord must tell the tenant in writing the bank's name and address, account type, interest rate and amount. If the landlord fails to invest the deposit, give the notice or pay interest, the tenant may give written notice and apply the deposit plus 7% annual interest to rent, and the landlord can't demand a new deposit; for a missed annual payment or notice the landlord first gets 30 days to fix it (46:8-19(c)).
What N.J.S.A. 46:8-21.1 says, as we verified it
Deposit limit
1.5 times one month's rent. If the landlord collects more security later, the extra collected in any year may not exceed 10% of the current deposit (46:8-21.2). The deposit stays the tenant's money, held in trust and not mixed with the landlord's own funds; it must sit in an interest-bearing account at a New Jersey bank or savings institution (landlords with 10+ units: an insured money-market fund or variable-rate account) (46:8-19(a), (b)).
Interest
Yes. The interest belongs to the tenant and is paid each year in cash or credited toward rent on the lease renewal or anniversary (or each January 31 after written notice). Within 30 days of receiving the deposit (and on moving it, on each annual interest payment and on sale of the property) the landlord must tell the tenant in writing the bank's name and address, account type, interest rate and amount. If the landlord fails to invest the deposit, give the notice or pay interest, the tenant may give written notice and apply the deposit plus 7% annual interest to rent, and the landlord can't demand a new deposit; for a missed annual payment or notice the landlord first gets 30 days to fix it (46:8-19(c)).
Full citation: N.J.S.A. 46:8-19, 46:8-21.1, 46:8-21.2, 46:8-24, 46:8-26 Read the official text
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FAQ: N.J.S.A. 46:8-21.1
How long does a landlord have to return a deposit under N.J.S.A. 46:8-21.1?
Under N.J.S.A. 46:8-21.1, a New Jersey landlord has 30 days to return the security deposit or send an itemized list of deductions. The landlord must return the deposit plus interest, less itemized deductions, by personal delivery or registered or certified mail. Shorter deadlines apply after displacement by fire, flood, condemnation or evacuation (5 business days) and after a domestic-violence lease termination (15 business days). If you win in court because the landlord withheld the deposit wrongfully, you can recover twice the amount owed plus court costs.
Is there a limit on the security deposit in New Jersey?
1.5 times one month's rent. If the landlord collects more security later, the extra collected in any year may not exceed 10% of the current deposit (46:8-21.2). The deposit stays the tenant's money, held in trust and not mixed with the landlord's own funds; it must sit in an interest-bearing account at a New Jersey bank or savings institution (landlords with 10+ units: an insured money-market fund or variable-rate account) (46:8-19(a), (b)).
Does New Jersey require an itemized list of deductions?
Yes, an itemized list of deductions is required. Citation: N.J.S.A. 46:8-19, 46:8-21.1, 46:8-21.2, 46:8-24, 46:8-26.
Does the landlord have to pay interest on the deposit in New Jersey?
Yes. The interest belongs to the tenant and is paid each year in cash or credited toward rent on the lease renewal or anniversary (or each January 31 after written notice). Within 30 days of receiving the deposit (and on moving it, on each annual interest payment and on sale of the property) the landlord must tell the tenant in writing the bank's name and address, account type, interest rate and amount. If the landlord fails to invest the deposit, give the notice or pay interest, the tenant may give written notice and apply the deposit plus 7% annual interest to rent, and the landlord can't demand a new deposit; for a missed annual payment or notice the landlord first gets 30 days to fix it (46:8-19(c)).
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Scan my New Jersey leaseGeneral information only, not legal advice. Last verified 2026-10-22. Laws change; verify with the linked source or a licensed attorney.