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Security Deposit Return in New Jersey

September 27, 2026 · LawDiver Research Team

Start with N.J. Stat. Ann. §§ 46:8-19 to 46:8-26. In New Jersey, The cap is 1.5 months' rent. The return deadline is 30 days after termination of the tenancy / surrender of possession, with an itemized list of deductions. Interest: Yes — landlords must place deposits in interest-bearing accounts and pay or credit interest annually. That is the question this guide answers for getting a security deposit back. Wrongful withholding can support double damages of the deposit wrongfully withheld plus attorney fees.

Deposit limits in New Jersey

1.5 months' rent

When the deposit must be returned

30 days after termination of the tenancy / surrender of possession, with an itemized list of deductions

How the New Jersey rule applies

Apply the New Jersey authorities in order. The facts are simplified so the statute and the standard are visible.

A residential tenant moves out of a New Jersey rental and the landlord has not returned the deposit.

Check the cap that applied when the deposit was collected: 1.5 months' rent.
Calendar the return deadline: 30 days after termination of the tenancy / surrender of possession, with an itemized list of deductions
Interest, if any: Yes — landlords must place deposits in interest-bearing accounts and pay or credit interest annually.
If the landlord keeps money without the required accounting: Wrongful withholding can support double damages of the deposit wrongfully withheld plus attorney fees.

New Jersey caps most residential deposits at one and one-half months’ rent, requires interest-bearing escrow, and mandates return with itemization within 30 days. Special Civil Part handles many disputes.

Interest and accounting

Yes — landlords must place deposits in interest-bearing accounts and pay or credit interest annually.

Penalties for wrongful withholding

Wrongful withholding can support double damages of the deposit wrongfully withheld plus attorney fees.

Practical process for tenants and landlords

Document the unit with dated photos or video at move-in and move-out, keep the lease and any inspection checklist, and send a dated written demand if the deadline passes without a lawful accounting.

Case law: security deposits in New Jersey

Reilly v. Weiss

Reilly v. Weiss, 406 N.J. Super. 71 (2009)

…of $375.14. They contend that the judge 1) "misapplied" the Security Deposit Act, N.J.S.A. 46:8-19 to -26 (the SDA); and 2) erred in concluding their landlord, defendant Marc Weiss, had met "his burden of proof" regarding the costs of repairs required as a result of damage caused by plaintiffs to the leased premises. We have considered these arguments in light of the record and…

Reilly v. Weiss is worth reading on New Jersey security deposits because the court put the point in its own words: "They contend that the judge 1) 'misapplied' the Security Deposit Act, N.J.S.A." Use that passage as the starting point, then read the facts that precede it.

Jaremback v. Butler Ridge Apartments

Jaremback v. Butler Ridge Apartments, 166 N.J. Super. 84 (1979)

…landlords and tenants with respect to the disposition of a security deposit at the expiration of a tenancy. Plaintiff-tenant brought the action pursuant to the statute to recover double the amount of the security deposit plus costs and attorneys' fees. The landlord denied that any moneys were due to plaintiff and counterclaimed for unpaid rent and other charges due under the p…

On security deposits, Jaremback v. Butler Ridge Apartments speaks to the New Jersey dispute in this passage: "Plaintiff-tenant brought the action pursuant to the statute to recover double the amount of the security deposit plus costs and attorneys' fees." The surrounding opinion shows how the court applied that language to the record.

Penbara v. Straczynski

Penbara v. Straczynski, 347 N.J. Super. 155 (2002)

…g a declaration that he was entitled to retain the tenant's security deposit after the tenant vacated the leased premises, and damages allegedly caused to the premises in excess of the amount of the security deposit. The tenant filed a counterclaim seeking return of the security deposit. The judge granted a directed verdict in favor of the tenant at the close of the landlord's…

Practitioners open Penbara v. Straczynski when New Jersey security deposits turns on the distinction in this sentence: "The tenant filed a counterclaim seeking return of the security deposit." Do not lift it out of the facts the court was deciding.

Hale v. Farrakhan

Hale v. Farrakhan, 390 N.J. Super. 335 (2007)

…he beginning of the tenancy, the Division also paid an $818 security deposit on plaintiff's behalf. In February 2004, defendant filed a summary dispossession action against plaintiff, which was based on plaintiff's anticipated loss of eligibility for temporary rental assistance and the damage she had allegedly caused to the apartment. This action resulted in the entry of a judg…

On security deposits, Hale v. Farrakhan speaks to the New Jersey dispute in this passage: "Division also paid an $818 security deposit on plaintiff's behalf." The surrounding opinion shows how the court applied that language to the record.

Burstein v. Liberty Bell Village, Inc.

Burstein v. Liberty Bell Village, Inc., 120 N.J. Super. 54 (1972)

…ate penalty charge in your rent payment, we now charge your security deposit the $ ____ late rent penalty. We will charge your security deposit this amount each time your rent is paid late and the extra late charge is not included in your rent payment for that month. *56 As a reminder to you, your lease calls for rent to be paid in ADVANCE on the FIRST day of each and every cal…

Burstein v. Liberty Bell Village, Inc. is worth reading on New Jersey security deposits because the court put the point in its own words: "We will charge your security deposit this amount each time your rent is paid late and the extra late charge is not included in your rent payment for that month." Use that passage as the starting point, then read the facts that precede it.

Spialter v. Testa

Spialter v. Testa, 162 N.J. Super. 421 (1978)

…ned impact of Sommer v. Kridel, 74 N.J. 446 (1977), and the Security Deposit Act, N.J.S.A. 46:8-19 et seq. Plaintiff (landlord) sues for rent due, contractual damages and counsel fees under a written lease. Defendants (tenants) defend and seek statutory double damages and *424 counsel fees for wrongful withholding of their security deposit. N.J.S.A. 46:8-21.1. There being no ge…

Spialter v. Testa is worth reading on New Jersey security deposits because the court put the point in its own words: "Sommer v. Kridel, 74 N.J. 446 (1977), and the Security Deposit Act, N.J.S.A. 46:8-19 et seq. Plaintiff (landlord) sues for rent due, contractual damages and counsel fees under a written lease." Use that passage as the starting point, then read the facts that precede it.

Veliz v. Meehan

Veliz v. Meehan, 258 N.J. Super. 1 (1992)

…monthly rental of $530.00. The tenants paid the landlord a security deposit in the amount of $795.00 (one and one-half months rent). On June 14, 1990, the tenants gave the landlord 45 days written notice of their intent to vacate the apartment as of July 31, 1990. They, in fact, vacated on July 18, 1990. The July rent was paid in full. Despite their demands for the return of t…

Veliz v. Meehan is worth reading on New Jersey security deposits because the court put the point in its own words: "The tenants paid the landlord a security deposit in the amount of $795.00 (one and one-half months rent). On June 14, 1990, the tenants gave the landlord 45 days written notice of their intent to vacate the apartment as of July 31, 1990. They, in fact, vacated on July 18, 1990." Use that passage as the starting point, then read the facts that precede it.

Delmat Corporation v. Kahn

Delmat Corporation v. Kahn, 147 N.J. Super. 293 (1977)

…h tenancy and defendant-tenant paid to plaintiff-landlord a security deposit of $220. Plaintiff failed to comply with the 1973 amendment to N.J.S.A. 46:8-19.[1] Thereafter, in accordance *296 with the provisions of that statute, defendant notified plaintiff that the security money was to be applied on account of the January 1975 rent for the apartment.[2] Subsequently, plaintif…

Practitioners open Delmat Corporation v. Kahn when New Jersey security deposits turns on the distinction in this sentence: "Plaintiff failed to comply with the 1973 amendment to N.J.S.A. 46:8-19.[1] Thereafter, in accordance *296 with the provisions of that statute, defendant notified plaintiff that the security money was to be applied on account of the January 1975 rent for the apartment." Do not lift it out of the facts the court was deciding.

Key takeaways

Maximum deposit: 1.5 months' rent
Return deadline: 30 days after termination of the tenancy / surrender of possession, with an itemized list of deductions
Interest: Yes — landlords must place deposits in interest-bearing accounts and pay or credit interest annually.
Penalties: Wrongful withholding can support double damages of the deposit wrongfully withheld plus attorney fees.
Primary authority: N.J. Stat. Ann. §§ 46:8-19 to 46:8-26.

Frequently asked questions

How much can a landlord charge for a security deposit in New Jersey?