New Jersey Security Deposit Demand Letter

Introduction

Key Things to Know

1. 1

   A security deposit demand letter is a written demand a New Jersey tenant sends a former landlord to recover a deposit withheld past the state deadline, before filing a court case.

2. 2

   The owner must return the deposit plus the tenant's share of interest or earnings, less any charges expended under the lease, within 30 days after the termination of the tenant's lease (N.J.S.A. 46:8-21.1).

3. 3

   Any deductions and the interest must be itemized, and the tenant notified, by personal delivery, registered or certified mail (N.J.S.A. 46:8-21.1).

4. 4

   On finding for the tenant, the court shall award double the amount of the moneys wrongfully withheld; this award is mandatory once the tenant wins and does not require proof of bad faith (N.J.S.A. 46:8-21.1).

5. 5

   The court also awards full costs of the action and, in the court's discretion, reasonable attorney's fees (N.J.S.A. 46:8-21.1).

6. 6

   A New Jersey landlord may not require a deposit greater than 1.5 times one month's rent (N.J.S.A. 46:8-21.2).

7. 7

   If the demand is ignored, a New Jersey tenant can file in the Small Claims Section for $5,000 or less, or in the Special Civil Part for up to $20,000 (njcourts.gov).

New Jersey Requirements for Security Deposit Demand Letter

• 30-Day Return Deadline

  In New Jersey the owner must return the deposit plus the tenant's share of interest or earnings, less any charges expended under the lease, within 30 days after the termination of the tenant's lease (N.J.S.A. 46:8-21.1). Your demand letter should state that this deadline has passed.

• Itemized Notice by Certified Mail

  Any deductions and the interest must be itemized, and the tenant notified, by personal delivery, registered or certified mail (N.J.S.A. 46:8-21.1). A landlord who keeps part of the deposit without a proper itemized notice sent this way can be challenged.

• Double the Amount Wrongfully Withheld

  On finding for the tenant, a New Jersey court shall award double the amount of the moneys wrongfully withheld (N.J.S.A. 46:8-21.1). The award is mandatory once the tenant wins and does not require proof of bad faith, so it applies to the sum the landlord kept without a lawful, itemized basis.

• Full Costs and Possible Attorney's Fees

  In addition to double the amount wrongfully withheld, the court awards full costs of the action and, in the court's discretion, reasonable attorney's fees (N.J.S.A. 46:8-21.1). This can make a wrongful withholding cost the landlord well beyond the deposit.

• Deductions Must Be Charges Expended Under the Lease

  A New Jersey owner may deduct only charges expended in accordance with the terms of the contract, lease, or agreement (N.J.S.A. 46:8-21.1). The statute ties deductions to what the lease allows rather than listing fixed categories, so charges outside the lease can be disputed.

• Deposit Cap of 1.5 Times One Month's Rent

  A New Jersey landlord may not require a deposit greater than 1.5 times one month's rent for a dwelling (N.J.S.A. 46:8-21.2). If the deposit collected exceeded that cap, the excess was collected improperly and can be raised alongside your demand.

• Send With Proof of Delivery and a Forwarding Address

  Send the demand to the landlord's address using a trackable method such as certified mail with return receipt, and provide your forwarding address. Keep a copy of the letter and the delivery record for a later Small Claims or Special Civil Part filing.

• Small Claims and Special Civil Part Limits

  If the demand is ignored, a New Jersey tenant may file in the Small Claims Section for claims of $5,000 or less, or in the Special Civil Part for claims up to $20,000 (njcourts.gov). Because the doubled amount can raise the total, choose the court that fits your claim.