Security deposit return law in New Jersey

In New Jersey, a landlord must return the security deposit within 30 days (N.J.S.A. 46:8-19 to 46:8-26 (Security Deposit Act), including 46:8-21.1 and 46:8-21.2).

Return deadline: 30 days after the tenancy ends
Deposit cap: One and a half months' rent (conditions below)
Itemized list of deductions: Required
If you get it wrong: In a tenant's suit for money due under 46:8-21.1, the court must award double the amount owed, plus full costs, and may award reasonable attorney's fees (46:8-21.1).; N.J.S.A. 46:8-19 to 46:8-26 (Security Deposit Act), including 46:8-21.1 and 46:8-21.2. Verified 2026-09-25.

When the clock starts, and what goes with the money

Within 30 days after the lease ends, the landlord must return the deposit plus the tenant's share of interest, less charges allowed by the lease, by personal delivery, registered mail, or certified mail.
The interest and any deductions must be itemized and sent the same way.
No deductions may be taken while the tenant is still in possession (46:8-21.1).
Shorter deadlines apply in special cases: 5 business days after a displacement by fire, flood, condemnation, or evacuation, and 15 business days after a lease ends early under the domestic violence termination law (46:8-21.1).

How much you can collect

New Jersey caps the security deposit at one and a half months' rent (N.J.S.A. 46:8-19 to 46:8-26 (Security Deposit Act), including 46:8-21.1 and 46:8-21.2). The conditions attached to that cap matter as much as the number:

One and a half times one month's rent for a dwelling unit.
Any additional security collected later can be no more than 10% of the current deposit per year (N.J.S.A. 46:8-21.2).
The Security Deposit Act covers all residential rentals except owner-occupied buildings with no more than two rental units, unless the tenant gives the landlord 30 days' written notice invoking the act (46:8-26).

What it costs to get this wrong

In a tenant's suit for money due under 46:8-21.1, the court must award double the amount owed, plus full costs, and may award reasonable attorney's fees (46:8-21.1). For deposits paid by a State entity on behalf of an assisted tenant, a landlord who willfully withholds them faces a civil penalty of $500 to $2,000 per offense (46:8-21.1).

Holding the deposit

The deposit stays the tenant's property, is held in trust, and cannot be mixed with the landlord's own funds (46:8-19).
Landlords with 10 or more units must place it in an insured New Jersey money market fund or a variable-rate interest-bearing account at a New Jersey bank or savings institution; smaller landlords must use an interest-bearing account at a New Jersey institution (46:8-19(a)-(b)).
Within 30 days of receiving the deposit, and at each annual interest payment, the landlord must tell the tenant in writing the institution's name and address, the account type, the current interest rate, and the amount.
Interest belongs to the tenant and is paid in cash or credited to rent yearly.
If the landlord fails to deposit, give notice, or pay interest, the tenant may apply the deposit plus 7% annual interest to rent and owes no further deposit (46:8-19(c)).
The deposit rules on account placement do not apply to seasonal rentals of 125 days or less (46:8-19(d)).

Common questions

How long does a New Jersey landlord have to return a security deposit?

30 days, under N.J.S.A. 46:8-19 to 46:8-26 (Security Deposit Act), including 46:8-21.1 and 46:8-21.2. Within 30 days after the lease ends, the landlord must return the deposit plus the tenant's share of interest, less charges allowed by the lease, by personal delivery, registered mail, or certified mail. When the clock starts and what goes back with the money is covered above.

Does New Jersey cap the security deposit?

Yes, one and a half months' rent. One and a half times one month's rent for a dwelling unit. Any additional security collected later can be no more than 10% of the current deposit per year (N.J.S.A. 46:8-21.2). The Security Deposit Act covers all residential rentals except owner-occupied buildings with no more than two rental units, unless the tenant gives the landlord 30 days' written notice invoking the act (46:8-26).

What happens if a New Jersey landlord misses the deadline or withholds wrongly?

In a tenant's suit for money due under 46:8-21.1, the court must award double the amount owed, plus full costs, and may award reasonable attorney's fees (46:8-21.1). The full rule is under "What it costs to get this wrong" above.

Does a New Jersey security deposit have to be held a particular way?

The deposit stays the tenant's property, is held in trust, and cannot be mixed with the landlord's own funds (46:8-19). The rest is under "Holding the deposit" above.

The deposit paperwork is the part that gets lost. PropManager keeps the deposit on the lease, the move-out itemization with the tenant's file, and the refund in the ledger, so the record exists before a dispute does.

Sources

N.J.S.A. 46:8-19 to 46:8-26 (Security Deposit Act), including 46:8-21.1 and 46:8-21.2. Source: https://lis.njleg.state.nj.us/nxt/gateway.dll?xhitlist_vq=46%3A8-21.1+Return+of+deposit%3B+displaced+tenant%3B+termination+of+lease%3B+civil+penalties%2C+certain.&f=xhitlist&xhitlist_q=%5BRank+100%5D%5BDomain%3A+46%3A8-21.1+Return+of+deposit%3B+displaced+tenant%3B+termination+of+lease%3B+civil+penalties%2C+certain.%5D46%3A8-21.1+Return+of+deposit%3B+displaced+tenant%3B+termination+of+lease%3B+civil+penalties%2C+certain.&xhitlist_x=advanced&xhitlist_s=relevance-weight&xhitlist_mh=99999&xhitlist_d=&xhitlist_hc=%5BXML%5D%5BKwic%2C25%5D&xhitlist_xsl=xhitlist.xsl&xhitlist_vpc=first&xhitlist_vps=20&xhitlist_sel=title%3Bpath%3Brelevance-weight%3Bcontent-type%3Bhome-title%3Bitem-bookmark%3Btitle-path%3Bhit-context&vid=Publish%3A10.1048%2FEnu. Verified 2026-09-25.

General information, not legal advice. Check your own lease and any city or county ordinance before you rely on it.