Legal Question in Landlord & Tenant Law in New Jersey

Re: Security Deposit

A landlord is barred from taking more than 1-1/2 month�s rent as security, or advanced rent. N.J.S.A. 46:8-21.2. All residential landlords are required to deposit security deposit monies received in an interest bearing account. Landlords are also required to give tenants notice, in writing, of the name and address of the bank (or other lending institution) where the security deposit is being held within 30 days of the receipt of the security deposit from the tenant. If the property is an owner-occupied property with not more than two rental units, a tenant must ask the landlord to provide notice of the location of the Security Deposit. If any landlord fails to provide such notice, the tenant may give written notice to the landlord directing them to apply the money deposited by the tenant towards rent payments which are due or which will become due in the future. The tenant is then without obligation to pay any future security deposit to the landlord, and the landlord is not entitled to make any further demand for a security deposit.