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Do landlords have to pay interest on security deposits in New Jersey, and when is it due?
Short answer
Pay or credit deposit interest annually (lease anniversary or January 31) with annual notice
Payment timing: Each year on the lease anniversary, or every January 31 if you told the tenant in writing you use that schedule
Each year, pay deposit interest to the tenant in cash or credit it toward rent on the lease renewal/anniversary (or on January 31 if you notified the tenant of that schedule), and repeat the written bank/account notice at that time.
"shall be paid to the tenant in cash or credited toward rent due and owing on the renewal or anniversary of the tenant’s lease or on January 31, if the tenant has been given written notice, that the interest payments will be paid on January 31 of each year" nj.gov
Pay or credit deposit interest annually (lease anniversary or January 31) with annual notice Verified
Deadline: Each year on the lease anniversary, or every January 31 if you told the tenant in writing you use that schedule
Each year, pay deposit interest to the tenant in cash or credit it toward rent on the lease renewal/anniversary (or on January 31 if you notified the tenant of that schedule), and repeat the written bank/account notice at that time.
Applies to: any number of units, some owner-occupied buildings exempt, when you hold a security deposit · Layer: New Jersey · Topic: Security deposit interest
Who it covers: Security Deposit Law does not apply to owner-occupied 2- or 3-family dwellings unless the tenant makes a written request (applies 30 days later) (N.J.S.A. 46:8-26). Alternative date: January 31 each year if the tenant was told in writing that interest is paid on January 31.
"shall be paid to the tenant in cash or credited toward rent due and owing on the renewal or anniversary of the tenant’s lease or on January 31, if the tenant has been given written notice, that the interest payments will be paid on January 31 of each year" nj.gov
Notes: If the landlord fails, tenant may (after written notice and 30 days) apply the deposit plus 7% annual interest to rent.
Last verified 2026-10-20 · Confidence: medium · Status: verified · Report a correction