How much a landlord can charge, and which deductions are actually legal
This page covers how much a landlord may charge in New Jersey, and which deductions from a residential deposit are lawful. It assumes the tenancy has ended and the question is what may be withheld.
It does not cover:
One and one-half times one month's rent (N.J.S.A. 46:8-21.2). An owner may not require more than 1 1/2 times 1 month's rental as security. Any additional annual security deposit may not exceed 10% of the current deposit.
Caps frequently carry exceptions — smaller landlords, furnished units, or pets are treated differently in most states. Read the provision itself rather than relying on the headline figure.
| Claimed deduction | Permitted in New Jersey |
|---|---|
| Charges expended in accordance with the terms of the contract, lease, or agreement | Permitted, if substantiated |
| Unpaid rent (where the tenant has vacated) | Permitted, if substantiated |
| Damage beyond ordinary wear and tear | Permitted, if substantiated |
| Claimed deduction | Permitted in New Jersey |
|---|---|
| Any deduction from a security deposit of a tenant who remains in possession of the premises | Not permitted |
| Deductions not itemized and notified to the tenant | Not permitted |
| Ordinary wear and tear | Not permitted |
Whether a specific charge is lawful depends on the facts — how old the damage is, whether the lease addressed it, and whether the landlord can document the cost. A charge being in the "permitted" column does not make it automatically collectable.
The landlord must itemize interest and deductions and return the deposit within 30 days. On failure, the court awards double the amount due plus costs and, in its discretion, attorney's fees.
In New Jersey the burden sits with the landlord. This matters strategically: if the burden is theirs, your task is to request the documentation rather than to prove the deduction wrong. N.J.S.A. 46:8-21.1 ↗
A landlord who withholds in bad faith may be liable for 2x the full deposit.
In any action for the return of moneys due, the court, upon finding for the tenant, shall award recovery of double the amount of said moneys, together with full costs of the action and, in the court's discretion, reasonable attorney's fees. The basis is the sum due (deposit + interest, less lawful charges) — keyed to the full deposit, not a "wrongfully withheld" portion.
N.J.S.A. 46:8-21.1 ↗On a court finding for the tenant, New Jersey awards double the amount due (deposit + interest, less lawful charges), plus full costs and, at the court's discretion, attorney's fees. This is keyed to the full deposit.
N.J.S.A. 46:8-21.1 ↗The landlord must hold the deposit in an interest-bearing account (money market fund or bank savings account) and return the tenant's portion of the interest with the deposit. This applies to landlords of 10+ rental units (and others by regulation).
N.J.S.A. 46:8-19 ↗The deposit may not exceed 1 1/2 times one month's rent, and any additional annual security deposit may not exceed 10% of the current deposit.
N.J.S.A. 46:8-21.2 ↗New Jersey has a specific provision granting the Small Claims Division jurisdiction over security-deposit actions up to $5,000 (including penalties), making small claims the natural venue for most deposit disputes.
N.J.S.A. 46:8-21.4 ↗““I kept the deposit for damages.””
New Jersey requires return of the deposit plus my portion of interest within 30 days, with an itemization of interest and deductions. Provide the itemization, or return my deposit with interest.
N.J.S.A. 46:8-21.1
““The deposit did not earn interest.””
New Jersey law requires the deposit to be held in an interest-bearing account, and my portion of the interest must be returned with the deposit. Failure to invest properly is a violation of N.J.S.A. 46:8-19.
N.J.S.A. 46:8-19
““You stayed past the lease term, so I kept it.””
No deductions may be made from the deposit of a tenant who remains in possession. Deductions are permitted only for charges in accordance with the agreement after termination.
N.J.S.A. 46:8-21.1
Some widely circulated summaries of New Jersey deposit law state things the statute does not say. We list the disagreements rather than picking a side silently.
| Source | What it says |
|---|---|
| Some multi-state checklists | 2x the wrongfully withheld amount |
| N.J.S.A. 46:8-21.1 | double the amount of said moneys (deposit + interest, less lawful charges) |
What we follow: Double the amount due (full-deposit basis)
The statute says "double the amount of said moneys," referring to the deposit plus interest less lawful charges — a full-deposit basis, not a wrongfully-withheld portion.
Every figure on this page comes from the official text, not from a summary. The table below lists each provision used and the date it was last checked against the source.
| Statute | Last verified | Source |
|---|---|---|
| N.J.S.A. 46:8-21.1 | 2026-10-15 | official text ↗ |
| N.J.S.A. 46:8-19 | 2026-10-15 | official text ↗ |
| N.J.S.A. 46:8-21.2 | 2026-10-15 | official text ↗ |
| N.J.S.A. 46:8-21.4 | 2026-10-15 | official text ↗ |
Primary reference: N.J.S.A. 46:8-21.1. Where the official text and a secondary summary disagree, this page follows the official text and says so. Amendments are recorded on the site changelog.
A self-help letter is the right starting point for a single deposit you can document. Get legal help if:
Local legal aid organisations and tenant unions offer free help for qualifying cases. They are independent of this site — we list them because they are the right place to go, not because they link here.
New Jersey Security Deposit Return
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The statute does not permit deductions for: any deduction from a security deposit of a tenant who remains in possession of the premises; deductions not itemized and notified to the tenant; ordinary wear and tear.
The landlord. The landlord must itemize interest and deductions and return the deposit within 30 days. On failure, the court awards double the amount due plus costs and, in its discretion, attorney's fees.
One and one-half times one month's rent (N.J.S.A. 46:8-21.2). An owner may not require more than 1 1/2 times 1 month's rental as security. Any additional annual security deposit may not exceed 10% of the current deposit.
No. Ordinary wear and tear