njsa 46:8-19 is the New Jersey law that keeps your security deposit your money, held in trust for you. If a letter cites njsa 46:8-19, it is about how your deposit is banked and what interest you earn. The key number is 30 days: your landlord must tell you in writing where your deposit is within 30 days.
What NJSA 46:8-19 Actually Says
The core idea is simple. Money you pay as a security deposit stays your property. Your landlord holds it “in trust.” It cannot be mixed with their personal money. It cannot become their asset. You can read the full text in the official Security Deposit Law from the NJ Department of Community Affairs.
Next, njsa 46:8-19 says where the money must go. Landlords with 10 or more rental units must use an insured New Jersey money market fund. They may also use a New Jersey bank account with a variable interest rate. Landlords with fewer than 10 units must use an interest-bearing account at a New Jersey bank or savings association. In both cases, the interest belongs to you.
However, njsa 46:8-19 is only the first section of a larger law. That law runs from N.J.S.A. 46:8-19 through 46:8-26. For example, the 1.5-month cap sits in section 46:8-21.2. The 30-day return rule sits in section 46:8-21.1. Here are the exact numbers.
| Provision | Exact rule | Section |
|---|---|---|
| Deposit cap | No more than 1.5 times one month’s rent | N.J.S.A. 46:8-21.2 |
| Yearly deposit increase | No more than 10% of the current deposit per year | N.J.S.A. 46:8-21.2 |
| Written bank notice | Within 30 days of receiving the deposit | N.J.S.A. 46:8-19(c) |
| Tenant remedy if rules are broken | Deposit plus 7% per year applied to rent, after written notice | N.J.S.A. 46:8-19(c) |
| Return after lease ends | Within 30 days, with an itemized list | N.J.S.A. 46:8-21.1 |
| Penalty for wrongful withholding | Double the amount owed, plus full court costs | N.J.S.A. 46:8-21.1 |
| Small claims limit | Up to $5,000, not counting costs | N.J.S.A. 46:8-21.4 |
Who NJSA 46:8-19 Covers (and Who It Does Not)
In most cases, njsa 46:8-19 covers every rental home or unit used as a place to live. That includes apartments, houses, and rooms. Section 46:8-26 sets out the main exception. It excludes owner-occupied buildings with no more than two rental units.
However, you can still get protection in that kind of building. You just give your landlord 30 days’ written notice that you want the law to apply. The DCA Security Deposit Bulletin (revised July 2025) says you can send this notice at any time during your tenancy. As a result, even tenants in small owner-occupied homes can use njsa 46:8-19.
There is one more exception. Seasonal rentals do not need the bank or fund deposit. A seasonal rental means 125 consecutive days or less, rented by someone who lives somewhere else. Housing for seasonal farm workers does not count as seasonal. The landlord must prove a rental is seasonal. Some towns may have extra local rules, so check with your municipal office.
What Your Landlord Must Do Under This Law
Under njsa 46:8-19, your landlord must send you a written notice. It must list the bank or fund’s name and address. It must also list the account type, current interest rate, and deposit amount. The bulletin says this notice may appear in your lease. Typically, landlords must send it again at each annual interest payment.
Your interest must be paid to you each year. It can come as cash or as a credit toward rent. That happens on your lease renewal or anniversary. It can also happen on January 31, if you got written notice of that date. The bulletin also says landlords can no longer take administrative fees from your deposit money.
When your lease ends, section 46:8-21.1 gives the landlord 30 days to return your deposit plus interest. They must use personal delivery, registered mail, or certified mail. Any deductions must be itemized. No deductions can be made while you still live in the unit. If the building is sold, the new owner becomes responsible for your deposit under njsa 46:8-19. That is true even if the old owner never handed it over.
What You Can Do When NJSA 46:8-19 Is Broken
Maybe your landlord never sent the 30-day notice or never banked your deposit. If so, njsa 46:8-19 gives you a tool. You can send a written notice asking to apply your deposit, plus 7% yearly interest, to your rent. After that, the landlord cannot ask you for another deposit while you live there. The bulletin suggests sending your letter by certified or registered mail, return receipt requested.
However, there is a catch for a missed annual interest payment or annual notice. In that case, you must first warn your landlord in writing. Then you give them 30 days to fix it. The bulletin says this 30-day wait does not apply if the landlord never properly deposited the money.
What if your deposit is not returned after you move out? The law that begins at njsa 46:8-19 lets you sue. Section 46:8-21.1 says the court shall award double the amount owed, plus full court costs. The judge may also award reasonable attorney’s fees. For disputes up to $5,000, you can file in Small Claims. File in the county where the rental is or where the landlord lives. For larger amounts, confirm the right court with your county Superior Court.
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A landlord who knowingly diverts deposit money can be charged as a disorderly person. Section 46:8-25 sets a fine of at least $200, up to 30 days in jail, or both. Also, any lease clause that makes you waive this law is void under section 46:8-24. Facing an eviction or a big dispute? Contact a local legal-aid office or a tenant attorney right away.
Frequently Asked Questions
My landlord wants two months’ rent as a deposit. Is that legal?
In most cases, no. The law that starts at njsa 46:8-19 caps deposits at 1.5 times one month’s rent. That cap is in section 46:8-21.2, and any later increase cannot be more than 10% of the current deposit per year.
I never got a notice telling me where my deposit is. What now?
Under njsa 46:8-19, you may be able to apply your deposit plus 7% yearly interest to your rent. You must ask in writing first, keep a copy, and send it by certified mail. Check with a local legal-aid office before you hold back any rent.
Can my landlord keep money for normal wear and tear?
No. The DCA bulletin says landlords may only deduct for damage beyond ordinary wear and tear, plus money you owe under the lease. Every deduction must be itemized and sent to you within 30 days.
Protect your stuff while you sort this out
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Find Your State’s Exact Rules
Notice periods, deposit caps, and the eviction timeline all change from state to state. Pick your state to see the exact days, dollar limits, and steps that apply where you live.
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Sources & How to Verify
The rules on this page are drawn from official government and legal-aid sources. Tenant law changes, so always confirm the exact rule with your state’s statute or a local legal-aid office.
- HUD: hud.gov — federal renter protections and fair housing
- Legal Services Corporation: lsc.gov — find free legal aid in your state
- Cornell Legal Information Institute: law.cornell.edu/wex — plain-English legal definitions
- Your state statute & court self-help portal: search “[your state] landlord tenant act” and “[your state] court self-help eviction” for the exact law and forms
Content last reviewed September 2026. If you notice outdated information, please contact us.
New Jersey Renter Guides
- New Jersey Eviction Process
- New Jersey Tenant Rights
- New Jersey Security Deposit Law
- New Jersey Rent Increase Laws
- New Jersey Repairs and Habitability
- Breaking a Lease in New Jersey
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Informational only — not legal advice. Tenant Rights Info is an independent educational resource, not a law firm, and this page does not provide legal advice. Landlord-tenant law varies by state and city and changes over time, so always verify the exact rule with your state’s statute, your local court’s self-help portal, or a legal-aid office. For urgent situations like an active eviction, contact a local legal-aid office or a licensed tenant attorney in your state right away.