My question involves landlord-tenant law in the State of: New Jersey
A relative of mine got notice to renew her lease and along with a rent increase, they are asking for an additional security deposit.
She is fine with the increase. But it is the increase in the security that is bothering her, so she asked me to look into this.
I did some research and I am not sure if she is required to pay for the increase.
A landlord is required to place security deposits in bank accounts that pay at least the regular rate of interest which is according to the law cited (N.J.S.A. 46:8-19, sections a, b, and c) The interest earned on the security deposit belongs to the tenant, and should be paid out in cash every year or subtracted from the amount of rent owed on each renewal of the lease. She has not received any interest payment since moving which was 10 years ago. Can they take the interest due and put it toward the security deposit increase? After ten years there should be enough interest to cover that amount.