Free New Jersey Room Rental Agreement Template

A New Jersey room rental agreement is the written contract for renting one bedroom in a shared home. Deposits are governed by the Rent Security Deposit Law, at sections 46:8-19 through 46:8-26 of the New Jersey Statutes.

Whether that law reaches your arrangement is the first question to settle, and unlike most states the answer is not fixed at the start of the tenancy.

The Security Deposit Law applies to all rental premises or units used for dwelling purposes except owner-occupied premises with not more than two rental units. A homeowner renting out a spare room is normally inside that exemption.

But it does not stay switched off if the tenant does not want it to. A tenant living in an owner-occupied premises with not more than two rental units can invoke the protections of the Act by giving the landlord 30 days’ written notice of the tenant’s desire to receive them, and that notice may be given at any time during the tenancy.

So the practical position in a shared house is that the statutory machinery sits dormant and either side can expect it to be turned on with a month’s notice. Writing the agreement as though the rules apply from the start is usually the simpler course.

Where the law does apply, a New Jersey room rental agreement is governed tightly on the money.

The Cap, and the Annual Increase

A landlord may not require more than one and one half times the monthly rental payment as a security deposit. Any additional yearly security deposit increase may not exceed 10% of the current deposit.

The Money Is Not the Landlord’s

A deposit continues to be the property of the person who made it, is held in trust, and may not be mingled with the recipient’s personal property or become an asset of the person receiving it. Deposits go into a State or federally chartered bank, savings bank, or savings and loan association in New Jersey insured by a federal agency, in an interest-bearing account.

The Notice

The landlord must notify the tenant in writing, giving the name and address of the institution holding the money, the type of account, and the amount.

Tip: If the landlord fails to invest or deposit the money as required, or to give the notice, or to pay the interest, the tenant may give written notice that the deposit plus interest at 7% a year be applied toward rent. After that the tenant is under no obligation to make any further deposit and the landlord may not demand one.

Within 30 days of the end of the tenancy the landlord must return the deposit together with the tenant’s portion of the interest or earnings, less any lawful deductions. The interest or earnings and any deductions must be itemized, and the tenant notified by personal delivery, registered mail, or certified mail.

One rule is worth flagging in a shared house where someone is staying put: no deductions may be made from the deposit of a tenant who remains in possession of the rental premises.

There is also a fast track for emergencies. Where a tenant is displaced by fire, flood, condemnation, or evacuation and an authorized official has posted the premises against occupancy, the deposit must be returned on request within five business days.

Figures and deadlines here are statutory and can change, so confirm the current position before relying on one.

For a New Jersey room rental agreement, the clauses worth adding are:

• Whether the parties are treating the Security Deposit Law as applying from day one
• The deposit amount, set against the one and a half month ceiling
• The bank details and account type, if a deposit is being held
• Which room is private and which areas are shared
• How utilities are divided between the people living there