SECURITY DEPOSIT ITEMIZATION LETTER

(New Jersey – N.J. Stat. Ann. § 46:8-21.1 Compliance)

I. DOCUMENT HEADER

Landlord: [LANDLORD LEGAL NAME], (“Landlord”)
Tenant(s): [TENANT LEGAL NAME(S)], (“Tenant”)
Premises: [STREET ADDRESS, CITY, NJ ZIP]
Lease Commencement Date: [MM/DD/YYYY]
Termination Date / Surrender of Possession: [MM/DD/YYYY]
Original Security Deposit: $[AMOUNT] (plus statutory interest)
Effective Date of Letter: [MM/DD/YYYY]
Governing Law & Venue: State of New Jersey; Special Civil Part, [COUNTY] County (Housing)

[// GUIDANCE: Insert Landlord’s full legal name. If the property is owned by an LLC/corporation, use the registered legal entity name and include signatory’s title.]

II. DEFINITIONS

For purposes of this Letter, capitalized terms have the meanings set forth below:

1. “Deposit” means the security deposit (and all accrued interest) delivered by Tenant to Landlord pursuant to the Lease and N.J. Stat. Ann. § 46:8-19.
2. “Itemization” means the detailed statement of allowable deductions from the Deposit as required by N.J. Stat. Ann. § 46:8-21.1.
3. “Lease” means the written [or oral] lease agreement between Landlord and Tenant covering the Premises.
4. “Ordinary Wear and Tear” has its customary legal meaning and excludes damage caused by misuse, negligence, or violation of the Lease.
5. “Refund Check” means the negotiable instrument issued to Tenant for the Net Refund Amount defined in Section III(C).

III. OPERATIVE PROVISIONS

A. Security Deposit Accounting
1. Original Deposit: $[AMOUNT]
2. Accrued Statutory Interest (to Termination Date): $[AMOUNT]
3. Total Deposit Plus Interest: $[TOTAL]

B. Itemization of Allowable Deductions
| # | Description of Charge | Supporting Doc. Ref. | Amount ($) |
|---|-----------------------|----------------------|------------|
| 1 | Unpaid Rent for [MONTH(S)] | Ledger Ex. A | [ ] |
| 2 | Repair – Wall Patching & Paint (Beyond Ordinary Wear) | Invoice Ex. B | [ ] |
| 3 | Carpet Replacement – Pet Damage | Invoice Ex. C | [ ] |
| 4 | Cleaning Service | Receipt Ex. D | [ ] |
| | Total Deductions | | $[TOTAL] |

[// GUIDANCE: List only charges permissible under § 46:8-21.1—unpaid rent, actual cost of repairing tenant-caused damage, and other charges expressly authorized in the Lease. Ordinary wear and tear is not deductible.]

C. Net Refund Amount
Total Deposit Plus Interest (III.A.3) ............. $[ ]
Less: Total Deductions (III.B) .................... ($[ ])
Net Refund Due to Tenant ...................... $[ ]

A Refund Check in the Net Refund Amount is enclosed and is being forwarded via [CERTIFIED MAIL, RETURN RECEIPT REQUESTED] to the forwarding address provided by Tenant:
[FORWARDING ADDRESS].

D. Supporting Documentation
True and correct copies of all ledgers, invoices, and receipts evidencing the deductions enumerated in Section III.B are attached hereto as Exhibits A-D.

E. Delivery Deadline Compliance
This Letter, together with the Refund Check and supporting documentation, is provided within the 30-day statutory period following Tenant’s surrender of possession, in strict compliance with N.J. Stat. Ann. § 46:8-21.1(a).

IV. REPRESENTATIONS & WARRANTIES

1. Landlord represents that the Itemization is complete, made in good faith, and in conformity with the Lease and applicable New Jersey law.
2. Landlord warrants that no deduction has been made for Ordinary Wear and Tear.
3. Landlord further represents that all interest calculations have been performed in accordance with N.J. Stat. Ann. § 46:8-19.

V. COVENANTS & RESTRICTIONS

1. Landlord shall promptly remit any additional interest that may accrue between the Effective Date and the date Tenant negotiates the Refund Check.
2. Tenant is encouraged—but not required—to notify Landlord in writing of any dispute with the Itemization within thirty (30) days of receipt so the parties may attempt informal resolution.

VI. DEFAULT & REMEDIES

A. Tenant’s Rights
If Landlord has failed to comply with N.J. Stat. Ann. § 46:8-21.1, Tenant may commence an action in the Special Civil Part seeking (i) return of the Deposit, (ii) statutory damages equal to double the amount wrongfully withheld, and (iii) reasonable attorney’s fees and court costs.

B. Cure Period
Upon written notice from Tenant identifying any alleged non-compliance, Landlord shall have five (5) business days to cure before statutory penalties accrue, unless a shorter period is required by law.

VII. RISK ALLOCATION

This Letter does not operate as a limitation of any statutory liability or penalty imposed by New Jersey law for wrongful retention of a security deposit. No indemnification or liability cap is provided herein beyond those set by statute.

VIII. DISPUTE RESOLUTION

1. Governing Law: State of New Jersey.
2. Exclusive Venue: Special Civil Part, [COUNTY] County (Housing).
3. Arbitration: Expressly excluded.
4. Jury Trial: Parties reserve all constitutional rights to trial by jury.
5. Injunctive Relief: Parties acknowledge that disputes under this Letter generally sound in money damages; however, either party may seek equitable relief where permitted by law.

IX. GENERAL PROVISIONS

1. Entire Agreement: This Letter constitutes the entire itemization required by statute and supersedes any prior oral statements regarding the Deposit.
2. Amendment: Any modification must be in a subsequent signed writing.
3. Severability: If any provision herein is held unenforceable, the remaining provisions shall remain in full force.
4. Notices: All notices relating to this Letter shall be in writing and delivered by certified mail or nationally recognized overnight courier.
5. Electronic Delivery: A PDF copy of this Letter sent to Tenant’s email on file shall constitute effective delivery; the mailed hard copy shall control in the event of a discrepancy.

X. EXECUTION BLOCK

LANDLORD:
[LANDLORD LEGAL NAME]
By: _____
Name: [AUTHORIZED SIGNATORY]
Title: [TITLE]
Date: _____

[// GUIDANCE: Tenant signature is not legally required for validity of the itemization; however, you may include an acknowledgment line below if you wish to document receipt.]

OPTIONAL TENANT ACKNOWLEDGMENT (Non-Waiver of Rights):
“I acknowledge receipt of this Security Deposit Itemization Letter and Refund Check on ____.”

Tenant: ______

THIS LETTER IS TENDERED WITHOUT PREJUDICE AND DOES NOT CONSTITUTE A WAIVER OF ANY RIGHTS OR REMEDIES AVAILABLE UNDER THE LEASE OR APPLICABLE LAW.