Hi,

I did some research and found out that security deposit should be kept in the bank and interest should be paid. As I understand this is NJ Law (I live in NJ). But in my contract it said that no interest will be paid on security deposit. Is this a breakage of law by my landlord? Can I appeal this case, if so what will be the interest paid on my deposit?

Thank you in advance.

NJ's Security Deposit Law does require that the security deposit be held in an interest-bearing bank account and the interest has to be credited to the tenant every year. But the Security Deposit Law does not apply to owner-occupied 2 or 3 family dwellings. Do you live in a 2 or 3 family owner-occupied dwelling?

You can read more about NJ's tenancy laws in the NJ Truth-in-Renting Guide. It's online at http://www.nj.gov/dca/codes/lt/pdf/t_i_r.pdf

Thank you.

No I live in coop building which has lots of apartments. But in my contract there is a point which said that no interest will be paid on this deposit and I signed this contract (at that time I didn't know anything about these laws). Is not it violation of law?

Thanks.

Yes, it sounds like your landlord is violating the law. There is a pretty good remedy for this. You have to send a letter to your landlord by certified mail, return receipt requested. In that letter you have to say that the landlord has 30 days to pay you the interest on your deposit (if you've been there longer than one year) or to give you a written notice stating the name and location of the bank where the deposit is held. If the landlord doesn't do this within that 30 days then you send him another letter by certified mail, return receipt requested, telling him to apply your security deposit plus interest to the next rental payments as they come due. (You can have him apply it to back rent instead if you're in arrears.)

Does your landlord own and rent out more than 10 apartments? If so then he is required to provide a higher rate of interest than a landlord who owns and rents out less than 10 apartments.

Go to LSNJLAW - D: Chapter 3: Security Deposits to get more details about the Security Deposit Law.

Thank you.

Actually I don't know how many apartment he owns. Truly speaking I don't want any interest. My concern is another thing. He is trying to keep my deposit. And I would like to know anything about security deposit in any case. Please give your advise.

My contract ended in May 30th, 2009. After May 30th contract became moth-by-month automatically. In June 1st I gave him my 30 days notice (according to the signed contract) that I will vacate the apartment in June 30th. He didn't say anything.

At the end of May in the conversation through the e-mails, there was a misunderstanding that I agree to give him 60 days notice before leaving the apartment. Now, in July 5th he wrote that he will deduct 1 month rent from my deposit, because I didn't notify him 60 days ahead. (When I gave him my notice that I am moving out, at that time he didn't say anything about deduction). Also, in June 30 he asked me to return keys and I did it.

Did I any violation? Can I plead and get my whole deposit back?

Thanks very much.

Sue him for all of it. If the signed lease said 30 days notice, and if he asked you for the keys on June 30th, he'll have a lot of trouble proving to a judge that a 60 day notice was required.

Sue for the entire deposit plus interest because he never notified you of the bank where it was being held.

Thanks a lot!!

I will do that.

You mention this is a Co-op apartment. This means that each apartment represents shares in the entity that own the building. I'm assuming that you are renting from the "owner" of that unit. I'll ask Lisa to expand on how this fits into deposit requirements.

As to the 60 days notice, if your lease specified 60 days he's right. If it specified 30 days you are right,

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Originally Posted by ScottGem

You mention this is a Co-op apartment. This means that each apartment represents shares in the entity that own the building. I'm assuming that you are renting from the "owner" of that unit. I'll ask Lisa to expand on how this fits into deposit requirements.

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It doesn't matter, Scott. The NJ Security Deposit Law applies to all rentals except owner-occupied 2 or 3 family dwellings.

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Originally Posted by ScottGem

You mention this is a Co-op apartment. This means that each apartment represents shares in the entity that own the building. I'm assuming that you are renting from the "owner" of that unit. I'll ask Lisa to expand on how this fits into deposit requirements.

As to the 60 days notice, if your lease specified 60 days he's right. If it specified 30 days you are right,

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The building has management company, but I renting from the owner of that apartment.
In my lease it said 30 days notice, but through the conversation via e-mails (this was in May then I was considering I am staying or not) there is an misunderstanding that I should notify 60 days ahead. My signed contract said 30 days notice.

Thanks.

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Thanks a lot. I got back my SD.

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Congratulations!