We talk about rental laws a lot, and if you’re wondering why, it’s pretty simple: they’re always changing. Not only are they always changing, they’re always being interpreted in new ways. Take fair housing laws, for example. Only in the last decade or so have emotional support animals become part of the general protections that are offered to people with disabilities.
Understanding the New Jersey landlord and tenant laws is essential if you want to rent out a property successfully and without risk.
When you feel like you don’t have time to keep up with all of the changing laws or you don’t have the expertise to understand exactly what they mean, we can help. At Realty Solutions, we have a diverse background and a lot of professionals on the team who come from various industries. That includes law.
Let’s take a look at how to better understand New Jersey laws, and how this understanding and application make us better-suited to manage your investment property.
First Up: Fair Housing in New Jersey
It’s impossible to talk about rental laws without talking about fair housing.
This is perhaps the most important set of regulations that require compliance. We know property owners who unintentionally made a fair housing mistake and ended up facing thousands of dollars of penalties and fines. Don’t be that property owner.
We’re going to talk about the importance of fair housing laws in New Jersey and what you need to know, and we’re also going to share some anecdotes about mistakes that were made and how to prevent them.
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Remember: Understanding fair housing laws is not just about legal compliance; it’s about creating a fair and equitable housing environment for everyone. This does not have to be a burden for landlords and investors.
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Let’s break down what New Jersey landlords need to know to stay compliant and operate their rental properties successfully.
- What Are Fair Housing Laws?
Fair housing laws are regulations designed to prevent discrimination in housing. These laws ensure all individuals have equal access to housing resources, regardless of their personal characteristics that often invite discrimination from others. At the federal level, the Fair Housing Act prohibits discrimination in the sale, rental, and financing of dwellings based on:
- Race
- Color
- National origin
- Religion
- Sex
- Familial status (e.g., families with children)
- Disability
New Jersey adds additional protections with the New Jersey Law Against Discrimination (LAD), covering:
- Sexual orientation
- Gender identity or expression
- Marital status
- Source of lawful income or public assistance
- Domestic partnership or civil union status
- Ancestry, nationality, or citizenship status
- Military service
These laws apply to most rental properties in the state—whether you own a single-unit or manage multiple apartment buildings. Not only do you have to comply with fair housing laws, but your property management team does as well. Make sure you’re working with someone who knows the law inside and out. Like us.
- Fair Housing in New Jersey: Practical Implications for Landlords
How do these laws impact your day-to-day responsibilities as a landlord? Here’s what compliance entails:
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Advertising Vacancies The language you use in your listings matters. Avoid discriminatory phrases like “singles only” or “no kids allowed.” These could be interpreted as attempts to exclude certain groups. Instead, we encourage rental property owners to opt for neutral and inclusive language. Highlight the features of your rental property that would appeal to the broadest pool of tenants. Don’t talk about whether kids would or would not like it. Don’t mention the houses of worship in the neighborhood. Instead, share its size, celebrate its upgrades, and talk about the parks and shopping areas close to the property. |
Tenant Screening It’s especially easy to make fair housing mistakes when you’re screening tenants, and if your process isn’t automated and objective, you might not even notice you’re treating applications differently. You can’t deny a rental application based on any protected status under fair housing laws. For instance, you can’t refuse to rent to a family with young children because you’re concerned about noisy tenants. Instead, establish objective screening criteria—such as credit scores, income levels, and rental history—and apply them consistently to all applicants. |
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Accommodations for Disabilities Under New Jersey Landlord Laws, you must accommodate tenants with disabilities. This could involve:
Failure to make reasonable accommodations can quickly lead to legal trouble. |
Retaliation is Prohibited If a tenant files a fair housing complaint or exercises their rights—whether it’s requesting an accommodation or reporting a safety issue—you cannot retaliate by raising their rent, refusing to renew their lease, or evicting them. Retaliation is illegal under both federal and state laws. The courts take it seriously, too, so don’t create even more legal trouble for yourself by making a bad situation worse. If you’re worried about an accusation or a potential claim, contact an attorney and your New Jersey property management partner. |
Common Mistakes Landlords Make (and How to Avoid Them)
Avoiding fair housing violations comes down to being proactive and informed.
We’ve heard stories about some of the more common pitfalls, and we don’t like to think about them happening to you.
Steer clear of this kind of trouble:
- Mistake #1: Making assumptions about tenants.
A landlord once assumed that a tenant who was interested in their rental property could not afford the rent because they received public assistance.
That’s a dangerous solution and one that can get you into trouble. It can also lead you to missing out on a qualified renter who would perform well in your rental unit. How to avoid this? Stick to verifiable income and credit records rather than assumptions.
- Mistake #2: Setting inconsistent rental criteria.
We have heard of owners who require higher security deposits from some tenants but not others. Unless you have a well-documented reason for doing this that does not violate fair housing standards, you don’t want to make this mistake. Use the same set of criteria for every applicant, without exception.
- Mistake #3: Poor record-keeping.
An owner once came to us for help after rejecting a tenant because that tenant’s credit score was only a 580, and the landlord’s rental criteria said that all residents must have a 600 credit score. The problem is, this landlord ultimately rented to a tenant who also had a 580 credit score. That tenant had a co-signer, which the denied tenant did not. But, the owner could not find any documentation on that co-signer. That means a big fair housing problem since standards were not consistently applied – or so it seemed. Document all interactions, applications, and decisions to provide evidence of fair treatment in case of legal disputes.
While compliance may sound like extra work, it offers numerous advantages for landlords. You’ll avoid legal troubles, for starters. Reduce the risk of fines and lawsuits and make sure you understand fair housing laws and comply with them. These laws also allow you to attract quality tenants from diverse backgrounds who feel valued and respected. And don’t forget your reputation. No one wants to be known as the landlords who has been slammed with fair housing complaint after fair housing complaint.
Next: Security Deposits in New Jersey
Understanding and complying with security deposit laws is perhaps the next most important aspect of being a landlord in New Jersey. Not only does it help you maintain a positive relationship with your tenants, but it also ensures you stay compliant with the stringent regulations set by the state.
Not sure you’re up to date on the security deposit rules, laws, and requirements? We’re following it for you. Here’s everything you need to know about New Jersey landlord laws concerning security deposits.
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Why Landlords Love Security Deposits Security deposits are a tenant’s guarantee against damages and unpaid rent, providing landlords with financial protection. However, mishandling or misunderstanding New Jersey’s security deposit laws can lead to serious legal consequences, including penalties, lawsuits, and even losing your right to retain the deposit. |
New Jersey has some of the strictest regulations in the country. If you’re a landlord operating in this state, knowing these laws is not just suggested—it’s mandatory.
Key Security Deposit Laws for New Jersey Landlords
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Maximum Amount Allowed Under New Jersey landlord laws, the security deposit cannot exceed 1.5 months’ rent. If you’re renewing a lease and the rent is going up for the next lease term, you may collect an additional deposit, but it cannot exceed 10% of the current deposit. What does this mean mathematically? A home that rents for $2,500 per month can only demand a security deposit that’s up to $3,750. |
How to Handle the Deposit You must deposit the security funds into an interest-bearing account in a New Jersey bank within 30 days of receiving the payment. Inform your tenant, in writing, about the bank’s name and address as well as the interest rate of the account. Failing to do so can entitle tenants to immediate reimbursement of their deposit, plus penalties. |
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Annual Interest Disclosures You’ll need to provide tenants with an annual summary of the interest earned on their deposit. This transparency creates trust and ensures compliance with the law. Not sure you can handle this type of detail when it comes to managing deposits and tenant correspondence? You need a New Jersey property management partner. |
When and How to Return the Deposit After the tenant moves out, you’re required to return their security deposit within 30 days, minus any legitimate deductions such as unpaid rent or documented damages beyond normal wear and tear. Unused portions must be accompanied by an itemized list of deductions and receipts if applicable. Missing this deadline could result in a penalty requiring you to pay twice the amount of the deposit. |
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Handling Disputes Over Deductions Disputes are not uncommon when it comes to security deposits, especially when tenants believe you’re keeping more of their money than you should. Keeping detailed records of property conditions before and after the tenancy is your best defense. Document with photos, inspection reports, and clear communication throughout the rental period. |
Special Exceptions If the rental property is sold or ownership changes, the security deposit (with accrued interest) must be transferred to the new owner and tenants must be notified in writing. |
Would you like to know what kind of mistakes we most commonly see landlords and rental property owns make when it comes to security deposits? Here they are:
- Failing to Open a Proper Account. Using personal or non-interest-bearing accounts can lead to legal disputes.
- Ignoring Notification Requirements. Many landlords overlook the requirement to inform tenants about account details or annual interest.
- Excessive Deductions. Charging for damages beyond normal wear and tear is a frequent cause of tenant grievances.
- Missing Deadlines. Failing to meet the 30-day window for deposit returns can result in harsh penalties under New Jersey landlord laws.
Understanding the details of the law can save you from costly legal battles. Contact us if you need guidance setting up your lease and collecting the security deposit.
Complying with New Jersey security deposit laws isn’t just about avoiding penalties—it’s about building trust. Transparent and fair policies can go a long way in creating positive relationships with tenants, encouraging lease renewals, and even improving your reputation as a responsible landlord. Adhering to these laws also protects you from potential financial setbacks caused by lawsuits or disputes.
What You Need to Know About Evicting Tenants in New Jersey
Moving right along, let’s talk about something no one wants to talk about: eviction.
Navigating New Jersey eviction laws can feel overwhelming, especially if you’re trapped in a situation where a tenant isn’t paying rent or refuses to leave when their lease ends. Minimize your legal risks by understanding and complying with eviction laws.
Here are the key details every New Jersey rental property owner needs to know before they begin an eviction proceeding against a tenant.
- You’ll Need Legal Grounds for Eviction
New Jersey landlords cannot evict tenants without a valid reason. Acceptable grounds for eviction include:
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- Non-payment of rent. Obviously, the most common reason for eviction. In this case, a court proceeding is required if the tenant fails to pay rent.
- Lease violations. This may involve unauthorized pets, property damage, or illegal activities on the premises.
- Holdover tenants. When a lease expires and the tenant refuses to vacate after proper notice.
Familiarize yourself with these grounds, as improper eviction attempts can lead to legal penalties.
- Notice Requirements
Before starting the eviction process, landlords must follow specific notice periods. For non-payment of rent, New Jersey law doesn’t require a written notice before filing a complaint in court. For lease violations, a Cure or Quit Notice gives tenants a chance to correct the issue. For termination for holdover tenants, landlords must provide at least one month’s written notice as required under New Jersey landlord laws.
Properly adhering to these notice requirements is essential for ensuring compliance.
- Filing for Eviction
To begin the formal eviction process, landlords must file a complaint with the local Superior Court. This step initiates legal proceedings to remove the tenant. Ensure every document related to the lease and notices is accurate and complete—missing details could delay the process.
Tenants’ Rights
New Jersey places a high priority on tenants’ rights. Even when grounds for eviction are valid, tenants can contest the eviction in court. Common defenses they may use include a claim that living conditions violated the implied warranty of habitability or that the landlord is acting in a way that’s retaliatory and discriminatory. Mismanaging the tenant’s security deposit can also complicate your eviction proceedings. Don’t let this be a reason that your tenant fights back against eviction.
Understanding and following New Jersey landlord laws not only helps you avoid potential fines or lawsuits but also builds trust with tenants. By staying informed, you create a smoother process for both yourself and your renters. We prefer to avoid evictions when we can. Working with tenants and getting them caught up with rent is a better solution for all parties.
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Is There Rent Control in New Jersey? There can be. New Jersey does not have statewide rent control. However, there is no restriction on cities and municipalities who want to establish their own rent control protections for tenants. That’s why cities like Camden and Jersey City have limits on how much rental property owners can raise the rent in a given year. Limits range from 2 percent to 5.5 percent, depending on where the property is located. |
This is an overview of the laws you need to know inside and out in order to effectively and compliantly rent out a property in New Jersey. If you need some help, we’re here to provide it. Contact us at Realty Solutions. We lease, manage, and maintain homes in Audubon, Collingswood, Cherry Hill, Haddon Heights, Blackwood, and the surrounding communities.
