Renting Out Your Property in New Jersey: A Landlord's Guide

Renting out property in New Jersey requires compliance with specific state laws that govern security deposits, anti-discrimination, eviction procedures, and habitability standards. New Jersey landlords must understand their legal obligations regarding lead paint disclosure, security deposit limits (1.5 months' rent), and the state's strong tenant protections.

New Jersey has some of the strongest tenant protection laws in the country, making it essential for landlords to understand their legal obligations before renting out property. Failure to comply with NJ landlord-tenant laws can result in significant penalties, including treble damages for security deposit violations.

Key Considerations

Owners of Vacation or Short-Term Rentals

Scenarios

Decisions

Property Owners with Multiple Units

Scenarios

Decisions

First-time Landlords

Scenarios

Decisions

Relevant Documents

Residential Lease Agreement

A legally binding contract between a landlord and tenant that outlines the terms and conditions of the rental arrangement, including rent amount, security deposit, lease duration, and other important provisions.

Rental Application Form

A form used to collect information about potential tenants, including employment history, income, references, and authorization for background and credit checks.

Move-In/Move-Out Inspection Checklist

A document that records the condition of the rental property before the tenant moves in and after they move out, which helps determine if any damage occurred during the tenancy.

Lead-Based Paint Disclosure Form

A federally required disclosure for properties built before 1978 that informs tenants about the potential presence of lead-based paint and associated hazards.

Rental Property Business License

A license required by many local jurisdictions to legally operate a rental property business, which may involve registration, inspections, and fee payments.

Security Deposit Receipt

A document acknowledging the landlord's receipt of the security deposit, including the amount, date received, and where the deposit will be held.

Landlord's Rules and Regulations

A supplementary document to the lease that outlines specific rules for the property, such as quiet hours, guest policies, and maintenance responsibilities.

Notice of Entry Form

A document used by landlords to notify tenants of their intent to enter the rental property, typically required by state law with specific advance notice periods.

Relevant Laws

New Jersey Anti-Discrimination Law (N.J.S.A. 10:5-12)

This law prohibits landlords from discriminating against potential tenants based on race, color, national origin, ancestry, nationality, sex, gender identity, disability, marital status, familial status, or source of lawful income. As a landlord in New Jersey, you must ensure your tenant screening and selection process complies with these fair housing requirements.

New Jersey Security Deposit Law (N.J.S.A. 46:8-19)

This law limits security deposits to 1.5 times the monthly rent and requires landlords to place deposits in an interest-bearing account. Within 30 days of receiving a deposit, you must provide tenants with written notice of where the deposit is held. You must return the deposit within 30 days after the tenant moves out, less any lawful deductions.

New Jersey Truth in Renting Act (N.J.S.A. 46:8-43)

This law requires landlords to provide tenants with a statement of legal rights and responsibilities. If your property has more than two rental units, you must give each tenant a copy of this statement at the start of the tenancy. The statement must be clear and accurate regarding tenant rights under New Jersey law.

New Jersey Landlord Registration Act (N.J.S.A. 46:8-28)

This law requires landlords of residential rental properties with three or more units to register with the municipality where the property is located. You must file a certificate of registration with the municipal clerk and provide tenants with a copy. For properties with fewer units, check local ordinances as some municipalities have additional registration requirements.

New Jersey Lead Paint Disclosure (N.J.A.C. 5:10-6.6)

For properties built before 1978, you must disclose known information about lead-based paint hazards before leasing the property. You must provide tenants with an EPA-approved information pamphlet and include specific warning language in the lease. This requirement helps protect tenants from lead poisoning risks.

New Jersey Eviction Law (N.J.S.A. 2A:18-61.1)

This law outlines the legal grounds for eviction in New Jersey, which are more restrictive than many other states. You can only evict tenants for specific reasons such as non-payment of rent, lease violations, or if you intend to personally occupy the unit. Each ground requires specific notice periods and procedures that must be strictly followed.

New Jersey Rent Control Ordinances

Many New Jersey municipalities have local rent control ordinances that limit how much you can increase rent and when. Before setting or raising rent, check if your property is in a municipality with rent control. These ordinances vary by location but typically restrict annual rent increases to a certain percentage.

Regional Variances

Northern New Jersey

Jersey City has strict rent control ordinances that limit annual rent increases to the Consumer Price Index (CPI). Landlords must register rental properties with the city's Division of Tenant/Landlord Relations. The city also requires a certificate of occupancy inspection between tenants and has additional protections against harassment and displacement.

Newark enforces rent control for buildings with 6+ units, limiting increases to 4% annually (5% for commercial properties). The city has a Rent Control Board that handles disputes and requires landlords to register properties. Newark also has a 'Just Cause' eviction ordinance providing stronger tenant protections than state law.

Hoboken has one of the strictest rent control ordinances in the state, limiting annual increases to the Consumer Price Index. Landlords must provide specific disclosures about rent control rights to tenants. The city also requires rental property registration and has additional inspection requirements.

Central New Jersey

New Brunswick has a rent control ordinance that applies to buildings with 5+ units constructed before 1980. Annual increases are capped at 3.9% or the Consumer Price Index, whichever is less. The city has a Rent Control Board that oversees implementation and handles appeals.

Princeton does not have municipal rent control, but has affordable housing requirements for new developments. Landlords must comply with state laws and obtain a rental certificate of occupancy. The municipality has stricter housing code enforcement than many surrounding areas.

Trenton has a rent leveling ordinance that limits annual increases to the Consumer Price Index. Landlords must register rental units with the city and obtain inspections. The city has a Rent Control Board that mediates disputes between landlords and tenants.

Southern New Jersey

Atlantic City has rent control for buildings with 5+ units, limiting increases to 4% annually. The city requires rental property registration and inspections. Due to its tourism economy, there are specific regulations regarding short-term rentals that differ from long-term residential leases.

Camden has a rent control ordinance limiting increases to 4% annually for buildings with 5+ units. The city has a Rent Control Board and requires landlords to register properties. Camden also has enhanced code enforcement and inspection requirements due to housing quality concerns.

Cherry Hill does not have municipal rent control, following only state landlord-tenant laws. However, the township has strict zoning regulations that may affect rental property usage and requires rental property registration. The township also has specific maintenance codes that exceed state requirements.

Shore Communities

Ocean City has specific regulations for seasonal and short-term rentals due to its status as a resort community. The city requires mercantile licenses for rental properties and has noise ordinances that are strictly enforced. Summer rental agreements often follow different patterns than year-round leases.

Cape May has historic district regulations that may affect rental property maintenance and modifications. The city requires rental registration and inspections. As a tourist destination, Cape May has specific ordinances regarding seasonal rentals and occupancy limits that differ from year-round rentals.

Long Beach Township requires rental property registration and inspections. The township has specific regulations for short-term rentals including occupancy limits and parking requirements. Flood insurance requirements are stricter here than in inland areas due to coastal location.

Suggested Compliance Checklist

Research New Jersey Landlord-Tenant Laws

0 days after starting

Familiarize yourself with New Jersey's landlord-tenant laws, particularly the Anti-Eviction Act, Truth in Renting Act, and Security Deposit Law. These laws outline your rights and responsibilities as a landlord in New Jersey. The NJ Department of Community Affairs website provides resources and guides for landlords.

Obtain Necessary Permits and Licenses

7 days after starting

Check with your local municipality about required rental property licenses or permits. Many New Jersey municipalities require landlords to obtain a Certificate of Occupancy or Habitability before renting. Some towns also require rental property registration and periodic inspections.

Draft Rental Property Business License Application

14 days after starting

Prepare the application for your rental property business license as required by your local municipality. This typically includes property information, owner details, and may require payment of fees. Some municipalities may require proof of property insurance and compliance with local housing codes.

Create a Rental Application Form

21 days after starting

Develop a comprehensive rental application to screen potential tenants. Include sections for personal information, rental history, employment details, income verification, references, and authorization for background and credit checks. Ensure compliance with Fair Housing laws which prohibit discrimination based on protected classes.

Prepare a Residential Lease Agreement

28 days after starting

Draft a legally compliant lease agreement that includes all required New Jersey provisions. The lease must include the Truth in Renting statement, security deposit terms (limited to 1.5 months' rent), and specific language regarding lead-based paint for properties built before 1978. Include clear terms on rent amount, due date, late fees, maintenance responsibilities, and lease duration.

Create a Lead-Based Paint Disclosure Form

35 days after starting

For properties built before 1978, federal law requires landlords to disclose known information about lead-based paint hazards. Prepare this form and provide tenants with the EPA pamphlet 'Protect Your Family from Lead in Your Home.' Keep signed acknowledgments for at least three years.

Develop a Move-In/Move-Out Inspection Checklist

42 days after starting

Create a detailed checklist documenting the condition of the property before move-in and after move-out. Include all rooms, fixtures, appliances, and exterior areas with space for notes and photographs. This documentation helps prevent disputes over security deposit deductions.

Establish Landlord's Rules and Regulations

49 days after starting

Develop clear rules for tenants that comply with New Jersey law. Include policies on noise, guests, pets, smoking, maintenance requests, and other important matters. Rules must be reasonable and cannot contradict rights granted to tenants under state law.

Create a Security Deposit Receipt

56 days after starting

New Jersey law requires landlords to provide a receipt for security deposits and to place deposits in an interest-bearing account. The receipt must include the name and address of the banking institution, the account number, type of account, and current interest rate. Tenants must receive annual interest payments or credits toward rent.

Prepare a Notice of Entry Form

63 days after starting

Create a form to notify tenants when you need to enter the property. New Jersey requires landlords to provide reasonable notice before entering (typically 24 hours except in emergencies). The form should state the purpose, date, and approximate time of entry.

Register with New Jersey Division of Taxation

70 days after starting

Register your rental activity with the New Jersey Division of Taxation. Rental income is subject to New Jersey Gross Income Tax, and you may need to collect and remit sales tax for short-term rentals (less than 90 days) in certain situations.

Obtain Proper Insurance Coverage

77 days after starting

Secure landlord insurance that covers the property structure, liability protection, and potentially lost rental income. Standard homeowner's insurance typically doesn't cover rental activities. Consider requiring tenants to obtain renter's insurance as part of your lease terms.

Research Local Rent Control Ordinances

84 days after starting

Determine if your property is subject to rent control or rent stabilization ordinances. Many New Jersey municipalities have local rent control laws that limit rent increases and provide additional tenant protections. Failure to comply with these ordinances can result in penalties.

Set Up Property Inspection Schedule

91 days after starting

Establish a regular inspection schedule that complies with local requirements. Many New Jersey municipalities require periodic inspections of rental properties. Create a system to track inspection dates, findings, and necessary repairs to maintain compliance with housing codes.

Prepare for Hotel and Multiple Dwelling Registration

98 days after starting

If your property has three or more units, you must register with the Bureau of Housing Inspection under the Hotel and Multiple Dwelling Law. This registration requires payment of fees based on the number of units and subjects the property to state inspections every five years.

Frequently Asked Questions

In New Jersey, landlords must ensure their rental property meets all health and safety codes, obtain any required municipal permits or certificates of occupancy, and comply with the state's anti-discrimination laws. You must also register your rental property with your municipality if required locally. Before renting, you should prepare a written lease agreement, though oral agreements are legally binding in New Jersey as well. Additionally, you must provide lead-based paint disclosures for properties built before 1978.

In New Jersey, landlords can collect a maximum security deposit of one and a half months' rent (1.5x the monthly rent). This deposit must be placed in an interest-bearing account in a New Jersey financial institution within 30 days of receipt, and you must provide written notice to the tenant about where the deposit is held. The interest earned, less administrative fees, belongs to the tenant and can either be paid annually, credited toward rent, or added to the security deposit.

New Jersey law requires landlords to provide 'reasonable notice' before entering a tenant's unit, which is generally interpreted as 24 hours' notice. You may only enter for legitimate reasons such as making repairs, showing the unit to prospective tenants, or in case of emergency. While specific notice requirements aren't explicitly defined in state law, courts typically consider 24 hours as reasonable. It's best to include specific entry terms in your lease agreement.

Evictions in New Jersey require following a specific legal process. You must have legal grounds for eviction (such as non-payment of rent, lease violations, or property damage) and provide proper written notice. The notice period varies based on the reason for eviction. After the notice period, you must file a complaint with the court and attend a hearing. If granted, only a court officer can remove a tenant. Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal and can result in significant penalties.

New Jersey landlords must maintain rental properties in habitable condition, including providing heat (minimum 68°F from October to May), hot water, functioning plumbing and electrical systems, and keeping the property free from pests and structural hazards. You must promptly address repair requests that affect habitability. The state's warranty of habitability is implied in all residential leases, even if not explicitly stated. Failure to maintain the property can result in tenants withholding rent, making repairs themselves and deducting costs from rent, or breaking the lease without penalty.

Yes, most New Jersey municipalities require rental property registration. Requirements vary by location, but typically involve completing a registration form, paying a fee, and sometimes undergoing inspections. Multiple-dwelling units (buildings with three or more units) must also register with the New Jersey Department of Community Affairs. Failure to register can result in fines and may affect your ability to evict tenants or collect rent. Check with your local housing office or municipal clerk for specific requirements in your area.

In New Jersey, landlords must provide several disclosures to tenants: 1) Lead-based paint disclosure for properties built before 1978, 2) Information about the security deposit account, 3) Truth in Renting Act statement (for properties with more than two units), 4) Child protection window guard availability notice, 5) Flood zone information if applicable, and 6) Any known environmental hazards. Some municipalities may have additional disclosure requirements, so check with your local housing authority.

In New Jersey, landlords must follow the Fair Chance in Housing Act, which restricts how and when you can consider criminal history. You cannot ask about criminal history on initial applications or advertise that you won't consider applicants with criminal records. Only after making a conditional offer can you request a criminal background check, and you must conduct an individualized assessment considering factors like the nature of the crime, how long ago it occurred, and evidence of rehabilitation. Blanket bans on renting to anyone with a criminal record are illegal.

New Jersey state law doesn't cap rent increases for most private residential properties, but increases must not be unconscionable and proper notice must be given (typically one month for month-to-month tenancies). However, many municipalities have rent control ordinances that limit how much and how often rent can be increased. You cannot raise rent during a fixed-term lease unless the lease specifically allows it. Additionally, rent increases cannot be retaliatory or discriminatory. Check your local rent control regulations before implementing any increase.

New Jersey landlords must provide basic services that make a property habitable, including heat (minimum 68°F from October to May), hot and cold running water, functioning plumbing and electrical systems, and proper trash disposal options. If utilities are included in the rent, you must maintain these services. For multi-unit buildings, you must maintain common areas in safe condition. While amenities like air conditioning aren't legally required unless specified in the lease, once provided, they must be maintained. The specific requirements may vary by municipality, so check local ordinances.