New Jersey Residential Lease Agreement

New Jersey Standard Residential Lease Agreement

A New Jersey standard residential lease agreement is a fixed-term rental contract that establishes the terms and conditions of a landlord-tenant relationship. It becomes legally binding after both parties sign the agreement and the initial payments are made (first month's rent, security deposit, etc.). This document defines each party's responsibilities and rights, including rent payment obligations, property maintenance duties, and conditions for termination.

New Jersey has comprehensive landlord-tenant laws that provide significant protections for residential tenants. The state's Anti-Eviction Act ^[9] limits the grounds upon which a landlord may evict a tenant, and the Law Against Discrimination ^[12] provides broad fair housing protections. Understanding these laws is essential for both landlords and tenants entering into a residential lease agreement.

Required Disclosures

New Jersey law requires landlords to provide several mandatory disclosures to tenants before or at the time of lease signing. Failure to provide these disclosures may result in penalties and may give tenants the right to terminate the lease.

Flood Zone and Flood Insurance Disclosure

Effective March 20, 2024, landlords must disclose whether the rental property is located in a FEMA Special Flood Hazard Area (100-year floodplain) or a Moderate Risk Flood Hazard Area (500-year floodplain). ^[1] Landlords must also disclose if they have actual knowledge that the premises or parking areas have experienced flooding.

Additionally, all residential leases must include the following notice:** "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."**

Tenants can determine flood hazard areas through the FEMA Flood Map Service Center. ^[17] If a landlord fails to disclose flood zone information and the tenant later discovers the property is in a flood hazard area, the tenant may terminate the lease with written notice.

Lead-Based Paint Disclosure

Federal law under the Residential Lead-Based Paint Hazard Reduction Act of 1992 requires landlords to disclose the presence of known lead-based paint and lead-based paint hazards before leasing housing built before January 1, 1978. ^{[2] [14]}

Requirements include:

Disclosure of any known lead-based paint or hazards in the dwelling

Provision of the EPA pamphlet "Protect Your Family From Lead in Your Home"

Inclusion of a Lead Warning Statement in the lease

Retention of disclosure records for at least 3 years

Truth in Renting Act Statement

Every landlord must provide each tenant with a copy of the Truth in Renting statement prepared by the New Jersey Department of Community Affairs at or prior to the time of occupancy. ^{[3] [13]} This statement explains the primary legal rights and responsibilities of both tenants and landlords.

The landlord must also keep a copy of the current statement posted in a location accessible to all tenants. The penalty for violating this requirement is $100 per offense.

Window Guard Disclosure

For multiple dwelling units, all leases must contain a clear, legible notice in bold font advising tenants that the landlord is required by law to provide, install, and maintain window guards upon written request from tenants with children 10 years of age or younger who reside in or regularly visit the unit. ^[4]

The required notice must state:** "The owner (landlord) is required by law to provide, install and maintain window guards in the apartment if a child or children 10 years of age or younger is, or will be, living in the apartment or is, or will be, regularly present there for a substantial period of time if the tenant gives the owner (landlord) a written request that the window guards be installed."**

Landlords must conduct semi-annual inspections of window guards (between March 1 - May 1 and September 1 - December 1) and maintain inspection records.

Security Deposit Laws

Maximum Amount

Under N.J.S.A. 46:8-21.2, landlords may not require more than one and one-half (1.5) times one month's rent as a security deposit. ^[5] This maximum includes any amounts collected for last month's rent, pet deposits, or cleaning fees.

Annual increases to the security deposit are limited to 10% of the current deposit amount.

Interest Requirements

New Jersey requires landlords to deposit security funds in interest-bearing accounts at FDIC-insured New Jersey banks. ^{[7] [16]}

Landlords with 10+ rental units must use accounts paying money market rates

Landlords with fewer than 10 units may use standard savings account rates

Landlords must notify tenants within 30 days of the bank name, address, and interest rate

Interest must be paid annually on the lease anniversary or credited toward rent

Penalty for non-compliance: If a landlord fails to properly invest the deposit or provide required notice, tenants may apply the security deposit plus 7% annual interest toward rent payments.

Return of Security Deposit

Within 30 days after lease termination, landlords must return the security deposit plus accumulated interest, less any lawful deductions, by personal delivery, registered, or certified mail. ^[6]

Deductions must be itemized in writing and provided to the tenant

Permissible deductions include unpaid rent and damages beyond normal wear and tear

Penalty for non-compliance: Double the deposit amount plus interest and potential legal fees

Rent Payment Laws

Grace Period for Senior Citizens

New Jersey law provides a five business day grace period for certain qualifying tenants when rent is due on the first of the month. ^[8] This grace period applies to:

Senior citizens receiving Social Security Old Age Pensions

Recipients of Railroad Retirement Pensions

Recipients of other governmental pensions in lieu of Social Security

Recipients of Social Security Disability Benefits

Recipients of Supplemental Security Income (SSI)

Recipients of Work First New Jersey benefits

The five business days exclude Saturdays, Sundays, and state and federal holidays. During this grace period, no late fees may be charged.

Late Fees and NSF Charges

New Jersey does not impose a statutory maximum on late fees for residential leases. However, late fees must be reasonable and specified in the lease agreement.

For NSF (non-sufficient funds) checks, the maximum fee a landlord may charge is $20 per returned check.

Tenant Protections

Anti-Eviction Act

New Jersey's Anti-Eviction Act (N.J.S.A. 2A:18-61.1) provides significant protections for residential tenants. ^{[9] [15]} Under this law, landlords cannot evict tenants without establishing one of 18 specific grounds enumerated by statute.

Key protections include:

Lease expiration alone is NOT grounds for eviction

Tenants have a right to lease renewal unless landlord proves specific cause

Landlords must prove grounds in court before eviction

Common grounds for eviction include:

Non-payment of rent after proper notice

Habitual late payment of rent

Disorderly conduct

Willful destruction of property

Substantial violation of lease terms

Owner occupancy (buildings with 3 or fewer units)

Building conversion to condominiums or cooperatives

Implied Warranty of Habitability

Landlord obligations include:

Maintaining vital facilities (heat, plumbing, electricity)

Repairing damage that affects habitability

Complying with applicable housing codes

Tenant remedies for habitability violations:

Repair and deduct: Tenant may repair vital deficiencies and deduct costs from rent

Rent abatement: Court may reduce rent to fair value during period of uninhabitability

Lease termination: Tenant may terminate for substantial habitability violations

Before exercising these remedies, tenants must provide written notice to the landlord (certified mail recommended) and allow reasonable time for repairs.

Fair Housing Protections

New Jersey's Law Against Discrimination (LAD) provides broader fair housing protections than federal law. ^[12] Discrimination is prohibited based on:

Race, color, creed, national origin, ancestry, nationality

Sex, gender identity or expression

Marital status, domestic partnership, or civil union status

Affectional or sexual orientation

Disability

Familial status

Source of lawful income (including Section 8 vouchers)

Pregnancy or breastfeeding status

Military service

Additionally, the Fair Chance in Housing Act (2021) prohibits most landlords from considering criminal history in rental decisions.

Landlord Rights and Responsibilities

Right of Entry

New Jersey law requires landlords to obtain tenant consent before entering rental premises, except in emergencies. ^[11]

General requirements:

Reasonable advance notice required (typically 24 hours)

Notice must specify date, time, and reason for entry

Entry should occur during reasonable hours

Emergency exceptions: Landlords may enter without notice in genuine emergencies such as fire, flood, gas leaks, or situations posing immediate danger to persons or property.

Lease Termination

For month-to-month tenancies, tenants must provide at least one full month (30 days) written notice before the beginning of the month they plan to vacate.

Due to the Anti-Eviction Act, landlords cannot simply terminate a tenancy when a lease expires. Landlords must have one of the 18 enumerated grounds and follow proper eviction procedures through the court system.

Special Considerations

Rent Control

New Jersey does not have statewide rent control. However, over 100 municipalities have adopted local rent control ordinances, including Newark, Jersey City, East Orange, Hoboken, and others. These local ordinances vary significantly in their requirements.

Landlords and tenants should check with local municipal offices to determine if rent control applies to their property.

Seasonal Rentals

Seasonal rentals of less than 120 days are exempt from certain disclosure requirements, including flood zone disclosures. However, lead-based paint disclosures are still required for pre-1978 housing unless the rental is 100 days or less.