Security Deposit Question

[NJ5LL]

New Jersey - Hello and thank you in advance for taking the time to read my post.

I own a 2-family home. I live in one unit and rent the other. New Jersey requires returning a security deposit within 30 days of lease expiration. I sent my former tenant certified mail contain required deposit and letter post dated on the 30th day. Did I meet my states law requiring returning the security deposit with in 30 days?

 

[Zigner]

New Jersey requires returning a security deposit within 30 days of lease expiration.

No, it requires the return within 30 days of the tenant surrendering the unit to you.

I sent my former tenant certified mail contain required deposit and letter post dated on the 30th day. Did I meet my states law requiring returning the security deposit with in 30 days?

Was it within 30 days after the tenant surrendered the unit? Do you expect there to be a problem?

I would suggest that, in the future, you leave yourself a little buffer...maybe mail it on the 25th day.

 

[NJ5LL]

No, it requires the return within 30 days of the tenant surrendering the unit to you.

Was it within 30 days after the tenant surrendered the unit? Do you expect there to be a problem?

I would suggest that, in the future, you leave yourself a little buffer...maybe mail it on the 25th day.

Thanks for the reply!

The mail is post marked the 30th and arrived on the 32nd Day. The tenants mailbox is in a ups store. Even if I did mail on the 25th mail can be lost, or the ups store can refuse to sign for it, tenant refuses to sign for mail all together, address could be incorrect, causing the the return to fall out of the 30 days window.

I'm being sued in small claims court for double the security deposit [$5,000 limit]. NJ Law says that tenants can awarded double deposit. The plaintiff states on filing "Landlord has not paid my security deposit." The tenant cashed my check [i have a copy of this]. Security deposit funds have been received by tenant. Because the plaintiff cashed the deposit, can she still sue for "not obtaining the security deposit" and be awarded double her security deposit?

 

[Zigner]

Thanks for the reply!

The mail is post marked the 30th and arrived on the 32nd Day. The tenants mailbox is in a ups store. Even if I did mail on the 25th mail can be lost, or the ups store can refuse to sign for it, tenant refuses to sign for mail all together, address could be incorrect, causing the the return to fall out of the 30 days window.

I'm being sued in small claims court for double the security deposit [$5,000 limit]. NJ Law says that tenants can awarded double deposit. The plaintiff states on filing "Landlord has not paid my security deposit." The tenant cashed my check [i have a copy of this]. Security deposit funds have been received by tenant. Because the plaintiff cashed the deposit, can she still sue for "not obtaining the security deposit" and be awarded double her security deposit?

If you had deposited the check in the mail, certified, return receipt requested, on the 25th day, then you would have proof that you sent it on time. Yes, mail can be lost, but you have the defense against double the deposit amount being awarded. If the tenant refuses to sign for it, then you have a defense against double the deposit amount being awarded. If you have the wrong address (and the tenant can show they gave you the CORRECT address), then you're in a pickle of your own making.

I can't tell the future, but I think it's extremely unlikely the tenant will be awarded double the deposit in your case. Just make sure that you have all your ducks in a row. Best of luck.

 

[NJ5LL]

If you had deposited the check in the mail, certified, return receipt requested, on the 25th day, then you would have proof that you sent it on time. Yes, mail can be lost, but you have the defense against double the deposit amount being awarded. If the tenant refuses to sign for it, then you have a defense against double the deposit amount being awarded. If you have the wrong address (and the tenant can show they gave you the CORRECT address), then you're in a pickle of your own making.

I can't tell the future, but I think it's extremely unlikely the tenant will be awarded double the deposit in your case. Just make sure that you have all your ducks in a row. Best of luck.

I certainly have learned a lot from this experience. I appreciate your time.

 

[Stephen1]

Another poorly written law. It leaves it up in the air as to whether the intent was that the LL send by the 30th day or the tenant receive by the 30th day. I wonder whether there are any court rulings clarifying this?

In my state of WA, while I grouse about the short deadline they give for returning the deposit, they at least clarify that it is the "LL send by" version. The WA statute includes the statement "The landlord complies with this section if the required statement or payment, or both, are deposited in the United States mail properly addressed with first-class postage prepaid within the fourteen days." Perhaps NJ LLs need to push their legislators to add something like this.

 

[Zigner]

I would argue that the wording of 46:8-21.1 indicates that so long as it's postmarked within the 30 days, it's timely (http://www.state.nj.us/dca/divisions/codes/publications/pdf_lti/sdepsit_law.pdf):

46:8-21.1 Return of deposit; displaced tenant; termination of lease; civil penalties, certain.
Within 30 days after the termination of the tenant's lease or licensee's agreement, the owner
or lessee shall return by personal delivery, registered or certified mail the sum so deposited plus
the tenant's portion of the interest or earnings accumulated thereon, less any charges expended in
accordance with the terms of a contract, lease, or agreement, to the tenant or licensee, or, in the
case of a lease terminated pursuant to P.L.1971, c.318 (C.46:8-9.1), the executor or administrator
of the estate of the tenant or licensee or the surviving spouse of the tenant or licensee so
terminating the lease. The interest or earnings and any such deductions shall be itemized and the
tenant, licensee, executor, administrator or surviving spouse notified thereof by personal
delivery, registered or certified mail. Notwithstanding the provisions of this or any other section
of law to the contrary, no deductions shall be made from a security deposit of a tenant who
remains in possession of the rental premises.

 

[FarmerJ]

Just do not lose your certified receipt that might be savior in court since you need proof that you sent it but next time do send it out earlier than the 30th day. (even one day sooner would be sufficient if its a local address your sending to)