New Jersey Residential Lease Agreement

Introduction

A New Jersey lease agreement allows landlords to sign on tenants to rent out their residential or commercial property. The legal contract establishes all necessary terms of the rental arrangement, including the cost of rent, the frequency of payments, property rules and policies, and the length of the lease term.

Required Disclosures

Landlords in New Jersey must provide tenants with several mandatory disclosures to comply with state and federal law.

Flood Zone Disclosure

If the property is located in a FEMA special flood hazard area (100-year floodplain) or moderate risk flood hazard area (500-year floodplain), the landlord must notify the tenant in writing. Landlords can use NJfloodmapper.org to determine their property's flood zone by clicking "Flood Hazards > FEMA Flood Zone." ^[1]

Fema Flood Insurance Notice

All residential leases must contain the following notice to tenants: ^[2]

"Flood insurance may be available to renters through FEMA's National Flood Insurance Program to cover your personal property and contents in the event of a flood. A standard renter's insurance policy does not typically cover flood damage. You are encouraged to examine your policy to determine whether you are covered."

Lead-Based Paint Disclosure

Federal law requires that all property owners of units built before 1978 inform their tenants of the presence of lead-based paint hazards. Landlords must provide tenants with an EPA pamphlet and a disclosure form acknowledging the potential presence of lead-based paint. ^[3]

Truth in Renting Act

The landlord must provide each tenant with a copy of the annual statement produced by the New Jersey Department of Community Affairs outlining the rights and responsibilities of tenants and landlords. This guide must be provided to all tenants with terms of at least one month residing in buildings that contain more than two dwelling units (three if the landlord occupies one). ^[4]

Window Guard Disclosure

The lease must include notice written in bold font informing tenants of their right to request window guards if a child 10 years of age or younger lives in or regularly visits the apartment. This requirement applies to buildings with three or more units. The notice must state that the landlord is required by law to provide, install, and maintain window guards upon written request. ^{[5] [6]}

Security Deposits

Maximum Amount

The landlord may not charge more than one and a half months' rent for the initial security deposit. If the landlord collects an additional security deposit amount in subsequent years, the additional amount may not exceed 10% of the existing deposit. ^[7]

Collecting Interest

Landlords are required to place the security deposit in either an interest-bearing account at a financial institution or an insured money market fund established by an investment company based in New Jersey. The landlord must collect interest on behalf of the tenant. ^[8]

Separate Bank Account

Yes, landlords must place the deposit in a separate account distinct from their personal funds. ^[9]

Returning to Tenant

The landlord must return the security deposit and accumulated interest, minus any withheld amounts, within 30 days of the lease termination date. An itemized list of deductions must accompany the returned deposit if any amounts are withheld. ^[10]

Rent Payments

Grace Period

All tenants are allowed five business days to pay rent without incurring late fees or penalties. A "business day" is defined as any day other than a Saturday, Sunday, or state or federal holiday. ^[11]

Maximum Late Fee

New Jersey state law does not establish a maximum penalty for the late payment of rent. However, any late fee must be reasonable and cannot be charged during the five-day grace period.

NSF (bad Check) Fee

The maximum amount a municipality may charge for a check returned for insufficient funds is $20 per check. ^[12]

Rent Increase Notice

The landlord must give the tenant at least 30 days' notice before increasing the rent. This notice must be delivered along with a Notice to Quit at the end of the lease term. ^[13]

Withholding Rent

New Jersey state law empowers tenants to deposit their rent with a court-appointed administrator if the rental unit fails to meet minimum standards of safety and sanitation. Alternatively, if a landlord fails to maintain a dwelling in a suitable living condition, a tenant can repair any vital problems and deduct the amount from the rent. ^{[14] [15]}

Landlord's Right to Enter

General Access

The landlord must provide at least one day's notice to the tenant before entering the property for the purpose of making inspections or repairs. ^[16]

Emergency Access

Entry without notice is permitted in safety or structural emergencies. ^[16]

Breaking a Lease

Non-Payment of Rent

New Jersey landlords can file to evict a tenant without notice if they fail to pay rent after the grace period expires. ^[17]

Non-Compliance (lease Violations)

A 1-month notice to quit is used to evict tenants who violated their lease terms. If the tenant's failure to maintain utilities violates the lease agreement, the landlord may serve a 30-day notice to quit. ^{[18] [19]}

Lockouts

It is illegal for landlords to change the unit's locks without a court-issued warrant for possession. ^[20]

Leaving Before the End Date

Ending a lease early may require the tenant to pay the remaining months of rent if the landlord cannot re-rent the dwelling before the end date. ^[21] However, in the following cases, ending a lease early may be permitted without penalty:

• If the tenant or their spouse passes away. ^[22]
• If the tenant or their spouse has a disabling illness or accident causing a loss of income, or if the dwelling is not handicapped accessible. ^[23]
• If the tenant or their spouse is accepted into an assisted living facility or low-income housing. ^[24]
• If the tenant or their child faces the threat of serious physical violence or domestic abuse. ^[25]

Lease Termination

Month-To-Month Tenancy

A month-to-month tenancy can be terminated by providing the other party with a 1-month notice to quit. ^[26]

Abandonment

There is no statute establishing a specific length of time that a tenant must be absent for a rental property to be considered abandoned. However, landlords must use reasonable judgment.

Unclaimed Property

Landlords may dispose of a tenant's personal belongings provided all the following applies: ^[27]

• The landlord reasonably believes that the tenant has abandoned the premises and their belongings.
• The landlord has obtained a warrant for removal and re-obtained possession of the premises, or the tenant has voluntarily relinquished possession. ^[28]
• The landlord has provided written notice of their intent to dispose of the belongings if they are not recovered within the specified timeframe (at least 15 days). ^{[29] [30]}