State Specific Question About: NEW JERSEY (NJ)

OK ... in NJ how many LL are following the interest $ back to tenant annually ( anniversary of lease )? Below is from the on-line copy of

Superior Court of New Jersey

Law Division

Special Civil Part

Landlord/Tenant Section

Residential Security Deposit

Security deposits must be deposited by the landlord into an interest bearing account within 30 days of receipt. The landlord must notify the tenant in writing of the name and address of the depository bank, the amount deposited, the type of account and the current rate of interest for that account, and annually thereafter. If the landlord fails to provide this information to the tenant in writing within 30 days of: (1) the receipt of the security deposit, (2) moving the deposit to another account or bank, (3) the merger of the bank with another bank, (4) the sale of the property or at the time of each annual interest payment, the tenant may apply the security deposit and any accrued interest toward rent. Tenants must notify the landlord in writing by certified mail if they are doing so. If the tenant is going to apply the security deposit to rent because the landlord failed to pay the annual interest in cash to the tenant or failed to provide the tenant with the annual update of the account information, the landlord has 30 days to rectify these failures.

I have court for eviction next Tuesday - tenant feels they can use 1/2 mos SD + interest which todate is $30.25 to cover 2 mos of rent - rent was due 04-01 they wrote 2 pg page letter - certifed as to why they are not obilagted to paty rent. In 17 yrs LL'ing this is my 1st time in court for eviction

I did EVERYTHING but report annually or give them cash back they are there 4 yrs. HOWEVER my lease states where $ is - how $ deposited - that it can't be used as rent etc. & all interest will accrue until date withdrawn for rental termination. Hopefully the 30 days to "rectify failures" which I did providing lots of paperwork from the bank helps my case.

This year I paid the interests on the security deposits on all my 7 units.

I did it because CT law says to pay it annually and it is to be paid according to the interest rate set by the CT Banking Commissioner - which is 1.5% and changes every year. It usually is higher than what the banks pay me either in checking or savings accounts.