A security deposit is any money given to the landlord by the tenant to:
- protect the landlord against damage to the rental beyond "normal wear and tear"
- clean the rental if necessary when the tenancy is terminated
- remedy unpaid rent
The security deposit is a source to reimburse or compensate a landlord for any of these things. However, in your lease you may have made specific agreements that extend what the security deposit may be used for. Your lease may require other kinds of refundable or non-refundable deposits - like "cleaning deposits" or "pet deposits". These kinds of payments may not be considered "security deposits" and may be excluded from the legal protections that apply to proper security deposits.
New Jersey law limits how much a landlord can charge for a security deposit. The security deposit cannot be more than 1 1/2 times one month's rent. It can be less.
Your landlord is prevented from taking more than 1 1/2 month's rent as security or advanced rent. If your landlord is asking for the last month's rent in addition to what s/he is calling the "security deposit", the last month's rent must be included in the calculation of the 1 1/2 month's rent limit.
We can illustrate this as follows:
- The rent for your new apartment is $1,000.
- The landlord is asking for a security deposit and the last month's rent in advance.
- The maximum security deposit the landlord can ask is $1,500 = ($1,000 X 1.5).
- If the landlord requires the last month's rent, $1,000, only $500 more can be asked as a security deposit. *Always get a receipt for the security deposit and make sure it states what the money is for.