What Happens to the Residential Security Deposit?
The security deposit generally must be deposited in an interest-bearing account in a bank or saving and
loan association in New Jersey at the time the lease is signed. The tenant must be given written notice
of where the money has been deposited within 30 days of receipt by the landlord.
If the landlord does not return the security deposit within 30 days from the date the tenant moves out or
vacates the premises, the tenant may sue to recover double the amount due, plus court costs and
reasonable attorney’s fees, if any. If the amount sought is $5000 or less, the tenant may sue in the Small
Claims Section of the Special Civil Part Court. If the amount sought exceeds $5,000.00, the tenant may
sue in the Special Civil Part. If the amount sought exceeds $15,000, the tenant must sue in the civil part
section of the Law Division.
The landlord must notify the tenant, within those 30 days from the date that the tenant vacates the rental
premises, of the amount of the security deposit being retained to pay unpaid rent and/or to pay for the
cost of the repairs, if any. If the amount of any damage caused by a tenant plus any unpaid rent is more
than the security deposit, the landlord may sue for the additional money