N.J. DCA Landlord/Tenant Information Series — (English)

Citation
N.J. DCA Landlord/Tenant Information Series — (English)
Jurisdiction
New Jersey (state)
Source
Official source
Original Source
https://www.nj.gov/dca/codes/publications/pdf_lti/t_i_r.pdf ↗

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Full Text

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in an account bearing a variable rate of interest. This
section of the Security Deposit Law does not apply to security deposits for seasonal use or rental.
Seasonal use or rental means use or rental for a term of not more than 125 consecutive days for
residential purposes by a person having a permanent place of residence elsewhere. Seasonal use
or rental does not mean use or rental of living quarters for seasonal, temporary, or migrant farm
workers in connection with work or place where work is being performed. The landlord shall have
the burden of proving that the use or rental of the residential property is seasonal (N.J.S.A. 46:8-
19 (d)).
The interest or earnings paid on the security deposit belongs to the tenant and shall be paid
to the tenant in cash or credited toward rent due and owing on the renewal or anniversary of the
tenant’s 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 (N.J.S.A. 46:8-19 (c)).
Within 30 days of receipt of the security deposit and at the time of each annual interest
payment, the landlord must notify the tenant in writing of the name and address of the banking
institution or investment company in which the money is deposited, the amount of the deposit,
type of account, and current rate of interest for the account. In addition, the landlord must notify
the tenant within 30 days of transferring security deposit money to a new landlord or moving the
security deposit to another account or bank. If a tenant does not receive proper notice or is not paid
interest as required, the tenant may use the security deposit for payment of rent by giving the
landlord written notice that the security money plus interest at the rate of 7% per annum be applied
to rent