Administrative and Service Fees
Pursuant to P.L. 2003, c. 188 landlords are no longer allowed to take administrative
expenses from security deposit money. The earnings or interest belongs to the tenant. The
tenant’s interest or earnings shall be paid to the tenant in cash, or credited toward payment of
rent due on the renewal or anniversary of the lease or on January 31, if the tenant has been
given written notice that the interest payments will be paid on January 31, of each year.
The landlord must give a security deposit notice at the time of each annual interest payment to
the tenant.
Notice of Deposit of Security Funds
Landlords are required to give tenants a statement in writing including the name and address of
the investment company, bank or savings and loan association along with the type of account,
current rate of interest and amount deposited within 30 days of receipt of a security deposit.
This notice may appear in the lease. The landlord must notify tenants within 30 days of
transferring security deposit money to a new landlord or moving the security deposit to another
account or bank. If notification is not given or if the security is not deposited or invested in
accordance with this law, the tenant has the right to require that the security deposit, plus 7 %
per year be applied toward any rent due. This request must be made in writing. However, after
giving the landlord written notice the tenant must allow the landlord 30 days to comply with the
annual interest payment and notice requirements. The 30-day allowance is not required, if the
landlord failed to properly deposit the initial security deposit money. At no time thereafter,
while the tenant occupies the unit, can the current landlord ask for or collect another deposit.