I live in a 2 bedroom apartment in NJ (right outside NYC) with my gf. Rent is ridiculously expensive here, so we always choose to live with a third person to help with bills and rent money. Our latest roommate moved in and asked not to be on the lease because the apartment complex, which has 65 units, does a credit and background check. She asked to be left off the lease because her credit was poor. We accomodated that request on condition that she give us a security deposit of one month's rent, her share of which was $600. There was no written lease or agreement between myself, my gf or the roommate. We verbally agreed that the primary purpose of the deposit was to protect my gf and I, who were listed as tenants on the lease with management, from the new roommate moving out or not paying rent. Obviously since she wasn't on the lease, she was free to move in or out at any time, while my gf and I would still be responsible for rent. So the one month deposit was taken to pay the rent in the event she moved out w/o giving us time to find a roommate. We all agreed verbally that if the new roommate didnt give us 30 days notice before moving out, she forfeitted her deposit.
After living there for 10 months (our lease was 12) the roommate gave us written notice that she was moving out. She satisfied the 30 day requirement by notifying us on the 30th of May that she'd be moving out June 30th. However, she demanded that her security deposit be applied towards her last month's rent. I said that this was unacceptable, and she said she would be staying in the apartment regardless. She refused to give me any money for rent for the month of June.
On June 1, I gave her the option of staying and paying June's rent, and when she moved out on June 30th, I'd refund her deposit. Or in the alternative, I said she could simply leave ASAP and forfeit the deposit, because she'd be violating our "30 days notice agreement." She chose neither, and instead moved out June 3rd, and then sent me a letter demanding her security deposit be returned. I answered with an explanation of why I would not return the full amount unless I found someone to replace her. I offered her half as a settlement. This offer was not responded to, so I assumed she declined.
Now, I got a letter from NJ special civil part small claims today with a copy of her complaint. The complaint demands:
1. return of the deposit ($600)
2. double damages for untimely return (in NJ landlords have 30 days, so another $600)
3. she alleges that a 2 bedroom apartment in my building is not "zoned for multiple family dwelling" and demands $1800 in punitive damages because this was an illegal tenancy.
4. the complaint top sheet from the courts threatens that I will be removed from my apartment (which I no longer even live in, LOL) if I lose
Anyone who knows Landlord/tenant law, PLEASE, go to town here. My main questions are:
A. How am I a landlord and subject to landlord laws? We had no landlord tenant relationship! She was simply a roommate, paying rent through me because she wasn't on the lease. I had only a tenancy interest in the property, I obviously don't own it or hold myself out to be the owner.
B. There is NO municipal ordinance or building code (that I am aware of at least) that makes a 2 bedroom apartment unsuitable for 3 people. I have called the city, they confirm this. So does the building management. Even if it was an illegal tenancy, wouldnt the building have to be involved? Again, I'm not the owner or the landlord. All I did was find a roommate on Craigslist (something I'll NEVER do again).
PLEASE HELP!!

