SECURITY DEPOSIT DEMAND LETTER
STATE OF NEW JERSEY
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL
[DATE]
[LANDLORD/PROPERTY MANAGER NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]
Re: DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [RENTAL ADDRESS]
Lease Start Date: [DATE]
Move-Out Date: [DATE]
Security Deposit Amount: $[AMOUNT]
Dear [LANDLORD/PROPERTY MANAGER NAME]:
This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to return the security deposit for the above-referenced rental property in accordance with New Jersey law. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable damages, interest, and attorney's fees.
I. NEW JERSEY LEGAL FRAMEWORK
A. Governing Law
Security deposits in New Jersey are governed by N.J.S.A. 46:8-21.1 et seq.
B. Security Deposit Limits
Under N.J.S.A. 46:8-21.2, a landlord may not demand or receive a security deposit in excess of one and one-half (1.5) months' rent. If you collected a deposit exceeding this amount, you have violated New Jersey law.
C. Return Deadline
Pursuant to N.J.S.A. 46:8-21.1, a landlord must return the security deposit within:
- Thirty (30) days after termination of the tenancy
- Five (5) days if the tenant must relocate due to fire, flood, condemnation, or evacuation
The deposit must be returned with an itemized statement accounting for any amounts withheld.
D. Interest Requirements
Under N.J.S.A. 46:8-21.3, the landlord must:
- Pay annual interest on the security deposit at a rate determined by the State Banking Commissioner
- Pay interest annually or credit it toward rent
- Notify the tenant in writing of the interest earned
E. Separate Account Requirements
Under N.J.S.A. 46:8-21.2, the landlord must:
- Hold the deposit in a separate, interest-bearing money market fund account in a New Jersey financial institution
- Provide the tenant with written notice of the account name and address
F. Permissible Deductions
Under N.J.S.A. 46:8-21.1, a landlord may retain from the security deposit only amounts necessary to:
- Pay unpaid rent
- Compensate for damages beyond normal wear and tear
G. Prohibited Deductions
The landlord may NOT deduct for:
- Normal wear and tear
- Conditions existing prior to tenant's occupancy
- Conditions resulting from landlord's failure to maintain premises
- Routine cleaning and repainting between tenancies
II. FACTUAL BACKGROUND
A. Tenancy Information
| Item | Details |
|---|---|
| Tenant Name(s) | [FULL NAME(S) OF ALL TENANTS] |
| Property Address | [COMPLETE ADDRESS] |
| Lease Commencement | [DATE] |
| Lease Expiration/Move-Out | [DATE] |
| Monthly Rent | $[AMOUNT] |
| Security Deposit Paid | $[AMOUNT] |
| Date Deposit Paid | [DATE] |
| Pet Deposit (if applicable) | $[AMOUNT] |
| Total Deposits Paid | $[TOTAL] |
B. Move-Out Circumstances
Notice Provided:
- Date Notice Given: [DATE]
- Notice Period: [NUMBER] days
- Method of Delivery: [ ] Hand-delivered [ ] Certified mail [ ] Email
Move-Out Details:
- Date Keys Returned: [DATE]
- Forwarding Address Provided: [ ] Yes [ ] No
- Date Forwarding Address Provided: [DATE]
- Move-Out Inspection: [ ] Requested [ ] Conducted [ ] Refused by Landlord [ ] Not offered
C. Condition of Premises at Move-Out
Our Client left the premises in the following condition:
[ ] Clean and in good repair - The premises were left in substantially the same condition as when our Client took possession, reasonable wear and tear excepted.
[ ] Professionally cleaned - Our Client hired [CLEANING COMPANY NAME] to professionally clean the premises on [DATE].
[ ] All personal property removed - All of our Client's personal belongings were removed from the premises.
[ ] No damage beyond normal wear and tear - Any changes to the premises were the result of normal, expected use during the tenancy.
[ ] Move-in/Move-out photos - Our Client has photographic documentation of the condition of the premises at both move-in and move-out.
III. LANDLORD'S VIOLATIONS
You have violated New Jersey law in the following ways:
[ ] Failure to Return Deposit: You have failed to return any portion of the security deposit within the statutory 30-day period required under N.J.S.A. 46:8-21.1.
[ ] Failure to Provide Itemization: You have failed to provide a written, itemized statement of deductions within the statutory period.
[ ] Excessive Security Deposit: You collected a security deposit exceeding 1.5 months' rent in violation of N.J.S.A. 46:8-21.2.
[ ] Failure to Pay Interest: You failed to pay annual interest on the deposit as required by N.J.S.A. 46:8-21.3.
[ ] Failure to Hold in Proper Account: You failed to hold the deposit in an interest-bearing money market account.
[ ] Failure to Provide Account Information: You failed to provide written notice of the account name and address.
[ ] Improper Deductions: You have made deductions that are not permitted by law, including:
- [ ] Deductions for normal wear and tear
- [ ] Deductions for pre-existing conditions
- [ ] Deductions exceeding actual cost of repairs
- [ ] Other improper deductions: [SPECIFY]
[ ] Bad Faith Retention: You have retained the deposit in bad faith, as evidenced by: [DESCRIBE EVIDENCE OF BAD FAITH]
IV. NORMAL WEAR AND TEAR
New Jersey law distinguishes between "damage" for which a tenant may be charged and "normal wear and tear" for which a tenant may not be charged. Normal wear and tear includes deterioration that results from the intended use of the premises and ordinary operation of natural forces over time.
The following items, if deducted, constitute normal wear and tear and are NOT permissible deductions:
[ ] Minor scuff marks on walls from furniture
[ ] Small nail holes from hanging pictures
[ ] Worn carpet in traffic areas
[ ] Faded paint or wallpaper
[ ] Minor scratches on hardwood floors
[ ] Worn finish on bathroom fixtures
[ ] Slightly dirty mini-blinds
[ ] Dust or minor dirt requiring standard turnover cleaning
[ ] Worn door handles or locks
[ ] Other: [SPECIFY]
V. DAMAGES AND REMEDIES
A. Return of Security Deposit and Interest
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Pet Deposit | $[AMOUNT] |
| Other Deposits | $[AMOUNT] |
| Accrued Interest | $[AMOUNT] |
| Total Deposits and Interest Due | $[AMOUNT] |
B. Statutory Remedies
Under N.J.S.A. 46:8-21.1, if a landlord fails to comply with the security deposit requirements:
- The tenant may recover double the amount wrongfully withheld
- The tenant may recover all accrued interest
- The tenant may recover reasonable attorney's fees
C. Attorney's Fees and Costs
Under N.J.S.A. 46:8-21.1, our Client is entitled to recover reasonable attorney's fees and costs incurred in pursuing this claim.
D. Total Demand
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Other Deposits | $[AMOUNT] |
| Accrued Interest | $[AMOUNT] |
| Statutory Penalty (2x wrongfully withheld) | $[AMOUNT] |
| Attorney's Fees to Date | $[AMOUNT] |
| TOTAL DEMAND | $[AMOUNT] |
VI. EVIDENCE IN OUR POSSESSION
Our Client has preserved the following evidence to support this claim:
[ ] Original lease agreement
[ ] Receipt or cancelled check for security deposit payment
[ ] Notice of account holding deposit
[ ] Move-in inspection report/checklist
[ ] Move-out inspection report/checklist (if conducted)
[ ] Photographs of premises at move-in (dated)
[ ] Photographs of premises at move-out (dated)
[ ] Video walkthrough at move-out
[ ] Copy of written notice to vacate
[ ] Proof of delivery of notice and forwarding address
[ ] Receipts for professional cleaning
[ ] Correspondence with landlord regarding deposit
[ ] Landlord's itemized statement (if provided)
[ ] Records of interest payments received
[ ] Witness statements regarding condition of premises
[ ] Utility final bills showing service through move-out date
[ ] Other: [SPECIFY]
VII. DEMAND
We hereby demand that you take the following actions within fourteen (14) days of the date of this letter:
-
Return of Deposit and Interest: Pay to our Client the full amount of the security deposit plus accrued interest: $[AMOUNT]
-
Total Payment: The total amount due is $[TOTAL AMOUNT]
Payment should be made by certified check or money order, payable to [TENANT NAME], and sent to:
[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]
Reference: [TENANT NAME] Security Deposit
VIII. CONSEQUENCES OF NON-COMPLIANCE
If you fail to comply with this demand within the time specified, we are authorized and prepared to:
-
File Suit: Commence legal action in New Jersey Small Claims Court (up to $5,000), Special Civil Part (up to $20,000), or Law Division for return of the deposit, double damages, interest, attorney's fees, and costs.
-
Seek Double Damages: Request the court award double the amount wrongfully withheld pursuant to N.J.S.A. 46:8-21.1.
-
Seek Attorney's Fees: Request the court award reasonable attorney's fees pursuant to N.J.S.A. 46:8-21.1.
-
Report Violations: Report your conduct to:
- New Jersey Division of Consumer Affairs
- Local Housing Authority
- Better Business Bureau -
Judgment Enforcement: Upon obtaining judgment, pursue all legal means of collection, including garnishment, levy, and lien on property.
IX. RESPONSE REQUESTED
Please respond to this demand in writing within fourteen (14) days. Your response should include:
- Your position on the amount owed to our Client
- Any documentation supporting claimed deductions
- Payment or a good-faith settlement offer
If we do not receive a satisfactory response, we will file suit without further notice.
X. RESERVATION OF RIGHTS
This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent negotiations.
Respectfully submitted,
[LAW FIRM NAME]
By: _________________________________
[ATTORNEY NAME]
[NEW JERSEY BAR NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]
Attorneys for [TENANT FULL NAME]
ENCLOSURES:
[ ] Copy of lease agreement
[ ] Copy of security deposit receipt
[ ] Move-in/move-out photographs
[ ] Copy of notice to vacate
[ ] Copy of forwarding address notification
[ ] Copy of landlord's itemization (if any)
[ ] Cleaning receipts
[ ] Authorization to represent
cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]
NEW JERSEY SECURITY DEPOSIT QUICK REFERENCE
| Element | New Jersey Requirement |
|---|---|
| Governing Statute | N.J.S.A. 46:8-21.1 et seq. |
| Deposit Limit | 1.5 months' rent |
| Return Deadline | 30 days (5 days for emergency) |
| Itemization Required | Yes |
| Receipt Required | No |
| Interest Required | Yes (annual, state-set rate) |
| Separate Account Required | Yes (money market account) |
| Penalty for Violation | 2x wrongfully withheld + attorney's fees |
| Attorney's Fees | Yes - N.J.S.A. 46:8-21.1 |
| Small Claims Limit | $5,000 (Special Civil Part up to $20,000) |
NEW JERSEY-SPECIFIC PRACTICE NOTES
[ ] Interest Required: New Jersey requires landlords to pay annual interest on deposits at a state-determined rate. Track interest owed.
[ ] Money Market Account: Deposits must be held in an interest-bearing money market account in a NJ financial institution.
[ ] Double Damages: New Jersey allows recovery of double the amount wrongfully withheld.
[ ] Emergency Deadline: If tenant must relocate due to fire, flood, or condemnation, the deadline is reduced to 5 days.
[ ] Court Options: Small Claims (up to $5,000), Special Civil Part (up to $20,000), or Law Division for larger claims.
[ ] Account Notice: Landlord must provide written notice of the bank name and address holding the deposit.
[ ] Newark/Jersey City: Some cities may have additional tenant protections. Check local ordinances.
[ ] Forwarding Address: Tenant should provide forwarding address in writing.
This template is for informational purposes only and does not constitute legal advice. Security deposit laws may vary by locality. Consult a licensed New Jersey attorney before use.