Tenants using security deposit in N.J. to cover rent?

Question

So one of my tenants asked to use there security deposit to cover this months rent as they are running low on funds and Gov. Murphy’s executive order 128 allows for tenants to use their security deposit currently during the pandemic.

Do I have to let them use it or is it optional of the landlord to accept? The way it is worded is hard to understand

It will be great to prevent a missed payment, at the same time with no security deposit things can get ugly when they eventually move out

Andy Rousch · Answer

Yes, I would never allow it if it wasn't mandatory that we allow it. Luckily I have a pretty strict lease which ensures that ALL money is owed on the contract no matter the circumstances so even if they delay rent it is still owed eventually (even if I have to wait sixty days after the state of emergency is lifted in NJ). This is why I love out of state investing lol!!!

Jim Adrian · Answer

Ouch!  and you can't collect any more money to repay the security deposit it looks like.

Karl B. · Answer

Common sense would say never ever let a renter use a security deposit as a months rent. A security deposit is to cover damages! In the event your tenant moves out (or is evicted) and there's damage/rent owed a security deposit will at least be something you can use to cover some or all costs.

But here's a link explaining everything in the state of NJ... goodness they're sticking it to landlords: https://www.lexology.com/library/detail.aspx?g=83e704fb-c871-4c0e-a0e2-d52844dffb14

Steve Morris · Answer

No clue, however, if you do accept it:

1) Get something in writing and mutually accepted/understood.  In OR, you just can't convert the sec deposit like that

2) Since ostensibly the sec dep has one purpose (to cover damages beyond normal wear-n-tear), how do you cover damages on move-out?  Will you get some replacement funds later?