Security Deposits and window Bars

News Bulletin

From the Law Office of Michael D. Mirne
3200 Sunset Avenue Ocean, NJ 07712
(732) 988-7200 Fax (732) 776-7444
Internet: http://www.mirnelaw.com/

The practice of being a Landlord is rapidly changing with new laws and changes to existing laws. In this month's newsletter, we will examine recent changes to the Rent Security Deposit Act as well as changes to the Child Safety Window Bar Act.

Security Deposits

The Rent Security Deposit Act has been amended to include several new or modified provisions. Of paramount concern to most Landlords are the following:

1. Initial Reporting - Within 30 days of the time a residential tenant pays security, the Landlord must provide the tenant with the following information:
   1. The name and address of the institution;
   2. The type of account (account number is not required but recommended);
   3. The current rate of interest for that account;
   4. The amount of the deposit;

If the Landlord fails to comply with any of these provisions, the Tenant may provide the Landlord with notice of an intention to apply the security deposit toward rent. In electing this measure, the Tenant may also apply interest in the amount of 7% per annum toward the rent (regardless of what the actual rate of return on the security account is). Please note that once the Security Deposit has been applied toward rent, the Landlord may not demand another security deposit as long as the Tenant remains in possession.

1. Rate of Return - Landlords who own 10 or more rental units are also required to deposit the Security funds in an insured money market account or other insured institution with a similar rate of return.
2. Annual Reporting - The residential landlord must annually distribute the appropriate amount of interest to each tenant. Please note that Landlords are no longer permitted to deduct an "administrative fee" from the interest. Landlords must also provide their Tenants with annual notification of the same information previously discussed under the heading of "Initial Reporting." If the Landlord fails to comply with this section of the Law, the Tenant may give the Landlord Notice of the violation and the Landlord will be afforded a 30-day period with which to cure the infraction before the tenant may apply Security toward rent.

Window Guards

Effective July 1, 2006, the Window Guard statute has been revised. The following rules now apply to all residential leases:

1. Residential tenants in buildings with more than one story and 3 or more rental units must be given notice of the right to have window guards installed in the rented premises.
2. This law does not apply to windows less than six feet above ground or windows leading to fire escapes.
3. The Window Guard Notice must be displayed in "prominent bold face type."
4. Tenants must be given notice twice annually of the right to have window guards.
5. Tenants may not request window guards unless there is a child "regularly present" (but not necessarily residing) in the rented premises.
6. If a building resident requests window guards in a common hallway of the building, they must be provided.
7. The Department of Community Affairs may inspect window guards as part of their five-year inspection program. Landlords will be responsible for ensuring compliance.

Disclaimer: This Primer provides general information and should not be construed as legal advice. Each person's case is unique and the information in this Primer may not be applicable to your particular case. For a free initial consultation, you may contact our office