Q: NJ landlord: individual account for each tenant security deposit?

A: In New Jersey, landlords are not required to open individual accounts in each tenant's name for security deposits. However, they must adhere to specific regulations regarding the handling and management of these deposits.

**Deposit Requirements:**

Landlords must place security deposits in an interest-bearing account at a federally insured bank located in New Jersey. If you manage fewer than 10 rental units, the deposit should be in a time or savings account. For 10 or more units, the deposit must be in an account that offers interest rates equal to or greater than those provided by the bank's money market accounts. The interest earned belongs to the tenant and must be paid annually. citeturn0search0

**Notification and Documentation:**

Within 30 days of receiving a security deposit, you must provide the tenant with a written notice that includes:

- The name and address of the bank where the deposit is held.

- The type of account (time or savings).

- The current interest rate.

- The amount of the security deposit

**Return of Deposit:**

Upon lease termination, you are required to return the security deposit within 30 days, along with an itemized list of any deductions for damages beyond normal wear and tear. Failure to comply may result in the tenant being entitled to double the amount of the security deposit, plus interest.

While individual accounts for each tenant are not mandatory, maintaining clear records and adhering to these regulations is crucial to ensure compliance with New Jersey's security deposit laws.