New Jersey Department of Community Affairs
Division of Codes and Standards
Landlord-Tenant Information Service
SECURITY DEPOSIT BULLETIN
May 2010 (Revised July 2025)
This bulletin outlines the laws pertaining to security deposits for residential rental properties in
New Jersey, pursuant to the Security Deposit Law, as set forth in N.J.S.A. 46:8-19 through 26
and as may be interpreted by a court of law. Landlords are permitted to charge security deposits
as security for the full performance of all of the terms of a lease. The security deposit law was
created to protect tenants from landlords who require security deposits and then divert the
deposits for their own use. This bulletin is for informational purposes only and should not be
used for legal interpretations or legal advice. Please consult an attorney for legal services and
advice when necessary.
APPLICABILITY
The Security Deposit Law applies to all rental premises or units used for dwelling purposes
except owner-occupied premises with not more than two rental units. However, a tenant
residing in an owner-occupied premise with not more then two rental units can invoke the
protections of the Act by giving the landlord 30 days written notice of the tenants desire to
receive the Act’s protection. Such written notice may be given at any time during the tenancy.
AMOUNT OF SECURITY DEPOSIT
Landlords are not permitted to require more than one and one half times the monthly rental
payment as a security deposit. Any additional yearly security deposit increase may not exceed
10% of the current security deposit. There is no time limitation within the statute for making a
request of a deposit.
Note: Be sure to obtain signed, dated receipts marked “security deposits”. Keep receipts for
your records.