Reference: the security deposit rule in each state and covered city. To settle a deposit, use the free Deposit settlement tool.
Reference
Security deposit rules in New Jersey
New Jersey: return the deposit within 30 calendar days of the end of the tenancy. Return within 5 business days after displacement and posting (business-day counting); funds stay available on demand for 30 days. Return within 15 business days after a lease terminated under C.46:8-9.6 (business-day counting). Interest: yes. Penalty if the rule is not followed (no bad faith needed): 2x the amount withheld. (N.J.S.A. 46:8-19 to 46:8-26 (Security Deposit Act))
The rule in plain words
- Return by: 30 calendar days after the end of the tenancy.
- Deductions allowed: other lease obligations, unpaid rent, damage beyond wear. Normal wear and tear never. Depreciation: none.
- Interest: Yes.
- Penalty: 2x the amount withheld if the rule is not followed (no bad faith needed).
- Deposit cap: 1.5 month(s) of rent.
- Who it covers: Exempt: owner-occupied premises with not more than two rental units, unless the tenant gives 30 days' written notice invoking the act (46:8-26).
The rule text
Within 30 days after the termination of the tenant's lease or licensee's agreement, the owner or lessee shall return by personal delivery, registered or certified mail the sum so deposited plus the tenant's portion of the interest or earnings accumulated thereon, less any charges expended in accordance with the terms of a contract, lease, or agreement
N.J.S.A. 46:8-21.1. Source: N.J.S.A. 46:8-21.1 Return of deposit; itemization; double damages, read 2026-10-09.
Notes on this rule (1)
- The double-damages basis is the moneys due (the deposit or balance wrongfully withheld).
Research notes (1)
How we sourced this rule: where the text was read and what we could not check.
- The official NJ statute host blocks automated fetching; the text was read on FindLaw (current as of 2024-01-01). ezel.ai checked the statute 2026-08-09; the pending S1466/A1991 ($500 pet deposit cap) is not enacted.
Worked example
A $2,000.00 deposit; the tenant moved in on June 1, 2023 and out on September 30, 2026. Intended deductions: $300.00 unpaid rent, $150.00 cleaning and a $1,200.00 carpet that was 5 years old.
- Return by
- October 30, 2026
30 calendar days after the end of the tenancy.
- Allowed deductions
- $1,500.00
Of $1,650.00 claimed.
- Refund due
- $500.00
Interest $0.00.
The draft statement for this example
DRAFT ITEMIZED STATEMENT OF SECURITY DEPOSIT Rule: N.J.S.A. 46:8-19 to 46:8-26 (Security Deposit Act) (New Jersey) Move-out date: September 30, 2026 Security deposit held $2,000.00 Interest credited see note Deduction: Unpaid rent -$300.00 Deduction: Carpet -$1,200.00 Total deductions -$1,500.00 Refund due to tenant $500.00 Return by October 30, 2026 Notes: - Interest: The deposit must be held in an interest-bearing account: a money-market fund or bank account at a variable rate, which subsection a requires of landlords with 10 or more units. The tenant's interest is paid in cash or credited to rent annually (lease anniversary or January 31), and the balance is paid at return (46:8-19). If the landlord misses the notice or interest duty, the tenant may apply the deposit plus 7% interest to rent. - Itemized under N.J.S.A. 46:8-19 to 46:8-26 (Security Deposit Act).
Computes and cites the published rule; it is not legal advice. You sign the statement: check the statute, your lease and any local ordinance first. Read the disclaimer.