AI New Jersey Security Deposit Return Letter

New Jersey law (N.J.S.A. § 46:8-21.1) requires landlords to return a tenant's security deposit within 30 days after the termination of the lease and delivery of possession (or within 5 days if the tenant vacates because the property is sold or rendered uninhabitable by fire or flood). The return must include any interest earned on the deposit. If any deductions are claimed, the landlord must simultaneously provide a written itemized statement of the deductions, together with copies of receipts or estimates for repairs or cleaning. Failure to return the deposit or to provide a proper itemized statement within the statutory period causes the landlord to forfeit the right to retain any portion of the deposit and exposes the landlord to a claim for double damages plus court costs and reasonable attorneys' fees., -

Part I, Pre-Departure Inspection Offer

New Jersey does not statutorily require a pre-move-out inspection, but offering one is best practice. It allows the tenant an opportunity to address issues and reduces later disputes over the condition of the premises. The offer should be documented in writing.

PRE-DEPARTURE INSPECTION OFFER
STATE OF NEW JERSEY

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Current or Last Known Address]]
[[City]], New Jersey [[ZIP Code]]

FROM (Landlord / Property Manager): [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]]
[[City]], New Jersey [[ZIP Code]]
Phone: [[Landlord Phone Number]] | Email: [[Landlord Email]]

RE: Pre-Departure Inspection Offer, [[Full Rental Property Address]], [[City]], New Jersey [[ZIP Code]]

Dear [[Tenant First Name(s)]],

Your tenancy at the above property is scheduled to end on [[Lease Termination / Vacate Date]]. To help ensure a smooth transition and minimize any potential deductions from your security deposit of $[[Security Deposit Amount]], I am offering you the opportunity to walk through the premises with me prior to your final move-out.

If you wish to participate, please contact me no later than [[Inspection Request Deadline, e.g. 5 days before vacate date]] to schedule a mutually convenient time.

Whether or not you elect to participate, a full accounting of your security deposit will be provided within the time required by N.J.S.A. § 46:8-21.1.

Sincerely,

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title]]
[[Date Signed]], -

Part II, Security Deposit Return Letter (Full Return, No Deductions)

*Use this letter when the full deposit plus interest is being returned with no deductions.*, -

SECURITY DEPOSIT RETURN LETTER, FULL RETURN
STATE OF NEW JERSEY
N.J.S.A. § 46:8-21.1

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]]
[[City]], New Jersey [[ZIP Code]]
Phone: [[Landlord Phone Number]] | Email: [[Landlord Email]]

RE: Return of Security Deposit, [[Full Rental Property Address]], [[City]], New Jersey [[ZIP Code]]

Dear [[Tenant First Name(s)]],

Your tenancy at [[Full Rental Property Address]], [[City]], New Jersey [[ZIP Code]] terminated on [[Move-Out / Possession Delivery Date]]. You returned possession of the premises and provided your forwarding address on [[Forwarding Address Receipt Date]].

After a final inspection of the premises, no deductions are being made from your security deposit. The deposit was held in an interest-bearing account as required by New Jersey law. You are entitled to the return of the full deposit together with your proportionate share of any interest earned.

Enclosed please find check number [[Check Number]] dated [[Check Date]], payable to [[Tenant Full Name(s)]] in the amount of $[[Total Amount Returned]].

This letter and the enclosed check constitute the landlord's complete accounting and return of your security deposit as required by N.J.S.A. § 46:8-21.1.

Thank you for your tenancy. If you have any questions, please contact me at the number or email above.

Sincerely,

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title]]
[[Date Signed]], -

Part III, Security Deposit Return Letter with Itemized Deductions

*Use this letter when lawful deductions are being made. Attach copies of supporting documentation.*, -

SECURITY DEPOSIT RETURN LETTER, ITEMIZED STATEMENT OF DEDUCTIONS
STATE OF NEW JERSEY
N.J.S.A. § 46:8-21.1

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]]
[[City]], New Jersey [[ZIP Code]]
Phone: [[Landlord Phone Number]]

RE: Security Deposit Accounting and Return, [[Full Rental Property Address]], [[City]], New Jersey [[ZIP Code]]

Dear [[Tenant First Name(s)]],

Your tenancy at [[Full Rental Property Address]], [[City]], New Jersey [[ZIP Code]] terminated on [[Move-Out / Possession Delivery Date]]. You vacated the premises and returned all keys on [[Key Return Date]]. You provided your forwarding address on [[Forwarding Address Receipt Date]].

Pursuant to N.J.S.A. § 46:8-21.1, I am required to return the security deposit or provide this written itemized statement of deductions and return any remaining balance within 30 days of the termination of the lease and delivery of possession (or within 5 days if the tenancy ended due to sale of the property or uninhabitability caused by fire or flood). This letter and the attachments fulfill that obligation.

The security deposit was maintained in an interest-bearing account in accordance with New Jersey law. The interest earned has been calculated and is included in the accounting below.

Section A, Deposit Summary

Enclosed is check number [[Check Number]] dated [[Check Date]] payable to [[Tenant Full Name(s)]] in the amount of $[[Balance Returned]].

Section B, Itemized Statement of Deductions

The following deductions are claimed for damage beyond ordinary wear and tear and/or other amounts lawfully deductible under the lease and New Jersey law:

1. Unpaid rent for the period [[Rent Period(s)]].

2. Cost to repair damage beyond ordinary wear and tear to [[specific item, e.g. drywall in living room, carpet in bedroom]] as documented in attached estimate/ invoice dated [[Date]] from [[Vendor Name]].

3. Cost of cleaning required to return the premises to move-in condition as documented in attached invoice dated [[Date]] from [[Cleaning Company]].

Total of Itemized Deductions: $[[Total Deductions]]

Section C, Supporting Documentation

Copies of the following documents are attached to this letter:

1. Written estimates or paid invoices for all repairs and cleaning exceeding $[[Threshold if any]].

2. Move-in and move-out inspection reports or photographs (if prepared).

3. Rent ledger showing any unpaid amounts.

4. Any other records supporting the deductions claimed.

Section D, Permissible Deductions Under New Jersey Law

Landlords may lawfully deduct only for:

• Unpaid rent or other charges expressly permitted by the lease.

• Repair of damage to the premises caused by the tenant's negligence, carelessness, or intentional misconduct (beyond ordinary wear and tear).

• Cleaning necessary to return the premises to the condition at the beginning of the tenancy, excluding ordinary wear and tear.

Deductions are not permitted for ordinary wear and tear, pre-existing conditions, or improvements that constitute capital upgrades.

Section E, Tenant Remedies for Non-Compliance

If the deposit or itemized statement is not provided within the statutory timeframe, or if deductions are improper:

1. The landlord forfeits the right to retain any portion of the deposit.

2. The tenant may bring an action in the appropriate court (Superior Court, Special Civil Part or Small Claims) to recover double the amount of the deposit wrongfully withheld, plus costs of suit and reasonable attorneys' fees.

3. The tenant may also pursue additional remedies under the New Jersey Consumer Fraud Act or other applicable law for willful violations., -

Part IV, Delivery, Service, and Recordkeeping

Method of Delivery: The return of funds and the itemized statement (if any) must be delivered by personal delivery, registered mail, or certified mail to the tenant's forwarding address or last known address.

Landlord Recordkeeping: Landlords should retain for at least three years:

1. The original security deposit receipt and bank records showing the deposit was placed in an interest-bearing account.

2. All notices provided to the tenant regarding the account within 30 days of receipt of the deposit.

3. Move-in and move-out inspection reports and photographs.

4. Copies of all itemized statements and supporting receipts sent to tenants.

5. Copies of checks or proof of electronic transfer returning deposits., -

Part V, Sample Interest Calculation Note

New Jersey requires that security deposits be held in an interest-bearing account in a federally insured bank. Tenants are entitled to the interest earned (less any lawful bank fees in certain cases). If the deposit was $1,200.00 and earned $18.00 in interest over the tenancy, the accounting reflects that amount. Consult current bank statements for the exact interest figure applicable to each tenancy., -

Signature and Certification

I certify that the information in this letter and the attached itemization (if any) is true and accurate to the best of my knowledge, that the deductions claimed are lawful, and that the return or accounting is being provided within the time required by N.J.S.A. § 46:8-21.1.

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title (Landlord / Property Manager / Authorized Agent)]]
Date: [[Date Signed]]

Proof of Service (to be completed by server):

I certify that on [[Date Served]] at approximately [[Time]], I served a copy of this letter and any attachments upon the tenant named above by:

[ ] Personal delivery to [[Name of recipient]]

[ ] Certified mail / Registered mail (attach receipt)

[ ] Other lawful method: [[Describe]]

Server Signature: ______________________________ Date: ___________

Printed Name: [[Server Full Name]], -

> ⚠️ Template example, not professional (legal/financial/medical) advice. This document is a template only. Verify all figures, deadlines, and procedures against current New Jersey statutes (N.J.S.A. § 46:8-21.1 and related sections) and consult qualified counsel for your specific situation. Laws and forms may change. As of June 2026.