Clarification on New Jersey regs:

3 Replies

Hello, as the title states I'm looking for some clarification on NJ landlord regulations. Specifically the security deposit and prepaid rent portion. The security deposit, including any prepaid rent cannot exceed 1.5 times the rental amount. So using $1000 per month as an example I've had one lawyer tell me the most I can collect upfront is $1500 which would be the first months rent + a $500 security deposit. This seems very low. Another attorney told me I can charge $1500 for the security deposit as well as first AND last months rent for a grand total of $3500. Using a $1000 a month rent guideline, could anyone possibly shed some light on this?

1.5 months for the security deposit plus your first month's rent prior to them moving in is all you can do as far as I am aware. ($ 1500 security deposit + $ 1000 first months rent)

Thanks for the reply Mark. That seems to be my impression as well. This question came from trying to figure out how to structure the lease since the tenant wants the ability to break before a year in the event his job moves. I was going to tack on another $150 per month since I know I can't collect the security deposit if he leaves within the year.

Kyle

I believe you can put in your lease the security deposit is forfeited if they break the lease early. 

HGG

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