What Is a New Jersey Lease Agreement?
A New Jersey lease agreement is a legally binding contract between a landlord and a tenant that explains important rental terms. It outlines important details such as rent, lease length, security deposit, and each party’s responsibilities.
For a New Jersey rental lease agreement to be enforceable, both parties must sign the lease. Verbal contracts lasting longer than one year are usually not valid under New Jersey law. Any lease agreement that is longer than three years must be in writing to be legally enforceable.
New Jersey does not limit the duration of a lease. Both parties are free to agree on a fixed-term or month-to-month arrangement as outlined in the Truth in Renting Guide (New Jersey Statute § 25:1-12).
New Jersey Landlord-Tenant Overview
| Topic | Rule | NJ Law |
|---|---|---|
| Security Deposit Limit | Maximum one and a half months' rent | NJ Stat § 46:8-21.2 |
| Deposit Return | Must return deposit within 30 days with an itemized list of deductions. | NJ Stat § 46:8-21.1 |
| Grace Period | 5-business-day grace period applies before charging late fees if the rent is due on the first. | NJ Stat § 2A:42-6.1 |
| Required Disclosures | Landlords must provide notices on floods, lead paint, owner information, and tenant rights. | NJ Stat § 46:8-50 |
| Landlord Entry Notice | No law in New Jersey requires advance notice, but a 24-hour notice is standard practice. | Truth in Renting Guide |
New Jersey Lease Agreement (By Type)
Select from six New Jersey lease agreement types tailored to your specific rental situation. Each template is customizable and follows NJ law for residential or commercial rentals.
New Jersey Standard Lease Agreement
Establishes a lease agreement between a landlord and a tenant for renting a residential property.
New Jersey Commercial Lease Agreement
Grants a tenant the right to use a landlord's property for commercial use.
New Jersey Rent-to-Own Lease Agreement
Permits a tenant to buy the property they were leasing after their rental period expires.
New Jersey Month-to-Month Rental Agreement
Renews on rolling monthly basis unless terminated.
New Jersey Sublease Agreement
Allows a tenant to re-rent their property to someone else while maintaining responsibility to the original landlord.
New Jersey Room Rental Agreement
Details guidelines and financial duties for occupants renting individual rooms within a larger rented property.
Security Deposit Rules in New Jersey
New Jersey has strict rules about how landlords must handle security deposits. Here are the key rules to keep in mind:
Maximum Amount Allowed
Landlords in New Jersey can charge no more than one and a half months’ rent as a security deposit (NJ Stat § 46:8-21.2).
Written Receipt
The tenant should be provided with a written receipt for the deposit when it is collected (NJ Stat § 46:8-21.2).
Where the Deposit Must Be Kept
The deposit must be placed in a separate interest-bearing bank account in New Jersey (NJ Stat § 46:8-21.2).
Notice of Deposit Location
Within 30 days of receiving the deposit, landlords must give tenants a written notice stating:
- The name and address of the bank.
- The account type in which the deposit is held (NJ Stat § 46:8-19).
Interest on the Deposit
Landlords in New Jersey are required to pay interest on the deposit annually. They can either:
- Pay the interest directly to the tenant
- Apply it as a credit toward rent (NJ Stat § 46:8-19(a))
Return Deadline
The full deposit, plus any accrued interest, must be paid within 30 days after the lease ends.
Itemized List of Deductions
If the landlord retains any portion of the deposit, they must provide the tenant with a written list of itemized deductions within 30 days (NJ Stat § 46:8-21.1).
Non-Compliance Penalties
If a landlord fails to return the deposit within 30 days, they may be required to pay the tenant double the amount wrongfully withheld (NJ Stat § 46:8-21.1).
Rent Rules and Payment Terms in New Jersey
New Jersey has specific rules about when rent is due, how long tenants have before late fees apply, and when landlords can take action for non-payment.
Due Date and Payment Terms
Rent is typically due on the first day of each month, unless the lease specifies otherwise. Tenants should review their rental agreement to confirm the exact due date.
Using a rent receipt is a simple way to protect both landlords and tenants. It helps track payments, avoid disputes, and maintain clear records for tax or legal purposes.
Grace Period
Tenants have a five-business-day grace period to pay rent before a landlord can charge a late fee or begin the eviction process. This applies if rent is due on the first of the month and helps protect tenants from immediate penalties (NJ Stat § 2A:42-6.1).
Late Fees
New Jersey law does not set a maximum amount for late fees. However, late fees must be reasonable and should be stated clearly within the lease agreement.
NSF Fees and Bounced Checks
If a tenant’s check bounces, the landlord can charge a non-sufficient funds fee (NSF). This fee shall be no more than $20, according to (NJ Stat § 40:5-18).
Rent Control
New Jersey doesn’t have a statewide rent control law. However, several cities and towns have local rent control ordinances in place. For example, the following cities may limit how often and how much rent can be raised:
- Jersey City: Rent hikes are usually capped at 4% or the Consumer Price Index, whichever is lower.
- Hoboken: Rent increases for certain apartments are limited under the city’s Rent Leveling & Stabilization program.
- Newark: Most rent increases can’t exceed 4% per year under local rent control rules.
Tenants should check their local rent board or government office to understand what rules apply in their area.
Withholding Rent and Repairs
Tenants may have the right to withhold rent if a landlord fails to make necessary repairs. In some urgent situations, tenants may hire a licensed professional to complete the repairs and deduct the cost of repairs from the rent. This is known as the repair and deduct remedy and, under certain conditions, is supported by New Jersey case law (Marini v. Ireland, 56 NJ 130 (1970)).
However, tenants are required to provide landlords with written notice and a reasonable amount of time to fix the issue or make the necessary repairs before withholding rent.
Landlord’s Right of Entry in New Jersey
Notice Requirements
There is no specific notice period in New Jersey that landlords are required to follow before entering a rental unit. However, landlords are expected to provide reasonable notice before entering for non-emergency reasons, such as inspections or repairs. Typically, a 24-hour notice is widely considered best practice.
Keys, Locks, and Safety
If the lease agreement allows, the tenants may change the locks. However, tenants should notify the landlord and provide a key if required by the rental contract. Lockouts or unauthorized changes to locks can lead to legal issues for both parties (Truth in Renting Guide).
Repairs and Maintenance Responsibilities in New Jersey
Landlords and tenants in New Jersey both have duties when it comes to maintaining a rental property. State law requires landlords to keep rental units in a safe and livable condition. At the same time, tenants are responsible for maintaining the property and notifying the landlord in the event of any problems that arise.
Landlord Responsibilities
Landlords must ensure that the property remains habitable throughout the lease term. This includes making timely repairs and maintaining key systems, such as heating, hot water, electricity, and plumbing. The unit must also meet state and local health and safety codes.
If a landlord fails to make essential repairs, the tenant may be legally entitled to hire someone to make the repairs and deduct the cost from the rent.
Tenant Responsibilities
Tenants must keep the rental clean and safe and use all appliances and fixtures properly. They are expected to follow local health and safety regulations and refrain from damaging the property. If something breaks or needs repairs, tenants are required to notify the landlord in writing as soon as possible. Delaying a repair request could result in further damage or even the loss of tenant rights.
Abandonment
When a tenant moves out and leaves personal property behind, the landlord must give a written notice before disposing of those belongings. The notice should provide the tenant at least 33 days to claim their items. If the tenant does not respond, the landlord may sell or dispose of the property as allowed under (NJ Stat § 2A:18-72).
Required Lease Disclosures in New Jersey
Here are the disclosures landlords are required to include in the lease agreement in New Jersey.
Truth in Renting Act
Landlords must inform tenants about their rights under the Truth in Renting Act and provide them with information on where to access the complete publication, available in both English and Spanish (NJ Stat § 46:8-45).
Lead-Based Paint Disclosure
For any rental property built before 1978, landlords must include a lead-based paint disclosure to warn tenants about potential exposure to lead hazards. This is required under federal law (42 US Code § 4852d).
Flood Risk Notice
For all residential leases signed or renewed on or after March 20, 2024, landlords must also provide a flood risk notice as required under NJ Stat § 46:8‑50. This disclosure helps potential tenants learn if flood insurance is recommended or required. This notice must be in 12-point font and either signed or acknowledged by the tenant.
Official Language to Include:
“Flood insurance may be available to renters through the Federal Emergency Management Agency’s (FEMA) 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.”
Window Guard Disclosure
In buildings with three or more units, landlords must notify tenants that they will install and maintain child-protection window guards if a child aged 10 or younger lives within the property or regularly visits. If the tenant asks in writing, the landlord must install and maintain the guards. The lease must include a bold statement about this rule, as required by law (NJAC § 5:10-27.1(c)).
Official Language to Include:
“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. The owner (landlord) is also required, upon the written request of the tenant, to provide, install, and maintain window guards in the hallways to which persons in the tenant’s unit have access without having to go out of the building. If the building is a condominium, cooperative, or mutual housing building, the owner (landlord) of the apartment is responsible for installing and maintaining window guards in the apartment, and the association is responsible for installing and maintaining window guards in hallway windows. Window guards are only required to be provided in first-floor windows where the window sill is more than six feet above grade or there are other hazardous conditions that make installation of window guards necessary to protect the safety of children.”
Crime Insurance Disclosure
In multiple dwellings, landlords are required to provide tenants with information about the Federal Crime Insurance Program and where to get an application (NJ Stat § 46:8-39).
Sample New Jersey Lease Agreement
View a sample New Jersey lease agreement template to see all the rental terms and disclosures that should be included within your contract. Use our step-by-step questionnaire to customize and download your residential lease agreement in minutes.
