New Jersey Rent Increase Laws (2024)

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New Jersey Rent Increase Laws (30)

Royce Gomez-King

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June 10, 2022

4

min read

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Summary

Across the country, rental rates are skyrocketing among all unit classes. From simple studio apartments to beautiful suburban homes, a 15 to 20% increase in rental rates is not unheard of. This scenario is causing tension between landlords and their tenants. As a property owner, you may be tempted to hop on the rent-increase wagon for your New Jersey rental, but there are some considerations you should make to ensure you are doing so lawfully and wisely.

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    New Jersey is one of many states in the U.S. that is seeing a dramatic increase in rental rates since 2019. Though it does not top the list of average rental increase by state, New Jersey still has a highly competitive rental market and property owners should keep up with the local rates in order to maximize their profits. If you plan to increase your rates, you should be aware of several laws and local trends to avoid losing valuable tenants in your area.

    When Can a Landlord Increase Rent?

    New Jersey landlords may not increase rent within the terms of a fixed-term lease. It may only be changed at the time of renewal or change of tenant, or in a month-to-month lease when at least one month's notice is given. Regardless of the lease term, the landlord must send aNotice to QuitandDemand for PossessionandNotice of Rent Increase.

    The notice effectively ends the current tenancy and invites the new or existing tenant to accept the new terms of the lease. Without this notice, the landlord may not increase the rental rate even for an existing tenant who plans to stay. The new lease can also include a new deposit, but deposits are limited to no more than 1-½ times the monthly rent.

    These regulations are statewide. However, some cities and counties set their own rent control measures to further protect tenant rights. Under any circ*mstance, it is not legal for landlords to raise the rent as a form of retaliation or to force problem tenants out.

    Is there a Rent Increase Limit?

    New Jersey does not have a dollar or percentage amount that makes a rent increase illegal. However, they do prohibit rent increases that are "unconscionable or unreasonable." This is determined on a case-by-case basis and can be objected by the tenant if they believe the rent increase is too high or not within the bounds of the local market. Some city ordinances make more specific limits on what is unreasonable.

    Tenants can protest a rent increase if they believe it is "unconscionable or unreasonable." If they are not willing to pay the rent increase, they can legally withhold the portion of the rent that has been increased. It then lies on the shoulders of the landlord to take the tenant to court and prove that the rent increase is reasonable. New Jersey courts look at five different factors to determine whether or not the landlord has increased the rent to a reasonable degree, or if they must lower the increase to make the tenant pay:

    • The dollar amount of the rent increase
    • The landlord's increasing expenses and profitability of the unit
    • Comparison of rents of similar properties in the area
    • The bargaining power of both landlord and tenant (to determine whether the tenant has other options or if they are being forced out)
    • Whether the rent increase would "shock the conscience of a reasonable person"

    Because landlords bear the burden of proof in these cases, they should be careful not to increase rents to an astronomical degree unless they have strong reason. Additionally, thorough market research should be conducted to prevent tenant discrepancies or loss of quality tenants.

    Laws Regarding Notices and Late Fees

    In New Jersey, a 30-day notice is required for rent increases for month-to-month tenants, and a 60-day or 90-day notice for quarterly and yearly fixed-term leases. This ensures that tenants can find new and reasonable accommodations and that they do not become trapped in rental increases that are unreasonable.

    New Jersey landlords do not have imposed limits on late fees, as long as they are disclosed in the written lease. However, a five-day grace period is protected for senior citizens.

    Cities in the State with Rent Control

    New Jersey is one of the states in the U.S. that allows cities and municipalities to create their own laws regarding rent control, and many of the most populous cities do so to protect their citizens. Over 100 cities in New Jersey have some form of rent control regulation, including Newark, Jersey City, Elizabeth, Lakewood, Clifton City, Trenton, Passaic, Union City, Bayonne, East Orange, New Brunswick, and Camden.

    Newark has the longest-standing rent control regulations, which limits rent increases for certain types of properties. Percentage increase limits are applied to all non-owner occupied 1 to 4 unit buildings and complexes. It also protects historic buildings and long-term tenants. However, these regulations do not apply to multi-unit dwellings constructed after the effective date of the current ordinance. This applies to all municipal rent control ordinances in the state of New Jersey.

    How This Affects Your Pricing Strategy

    New Jersey takes extra measures to protect tenant rights. As a landlord, you should be sensitive to this cultural expectation and raise rents along with the current market trends, workforce norms, and rates of other local units. If your tenant deems the rent increase unreasonable, they can protest and the burden of proof will be on you. In order to prevent discord in an otherwise positive tenant relationship, you should price your rentals competitively in New Jersey and gradually increase the rent as the housing market rises.

    Rent Estimate

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    If you are looking for instant access to analyzed market research and pricing recommendations for your New Jersey rental, try ourRent EstimateTool. This tool can help you easily price your rental and decide when to increase your rates. Contact us today to learn more about the Rent Estimate tool and other RentSpree offerings.

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      New Jersey Rent Increase Laws (2024)

      FAQs

      How much can a landlord raise rent in NJ? ›

      No, the state of New Jersey does not provide a limit to rent increases. However the local municipalities do and the rent increase limits can range anywhere between 2 - 6% per year. Many cities in New Jersey follows the Consumer Price Index (CPI) to set that range.

      What is the proper notice for rent increase in NJ? ›

      All tenants must receive a written 30 day notice of their rent increase for it to be valid.

      What is the Jersey City law on raising rent? ›

      Jersey City has a rent control ordinance that limits increases to 4% annually for some buildings.

      Is there rent control in New Jersey? ›

      The State of New Jersey does not have a law controlling or governing rent increases or rent leveling. However, any municipality within the State of New Jersey may adopt an ordinance controlling rent increases. Your municipal clerk can tell you if a rent control ordinance exists within your municipality.

      How often is a landlord required to paint in NJ? ›

      Paint requirements

      Painting or other protective coatings are the responsibility of the occupant, not the landlord when required more than once every three years, as a result of acts or omissions of the tenant. (Rental units are not required to be painted between tenants.)

      Can a landlord not renew a lease in NJ? ›

      A landlord must allow the tenant to renew the lease unless the landlord has good cause for an eviction under the Anti-Eviction Act. (This does not apply to two or three-family owner occupied dwellings, motels, hotels, transients or seasonal tenants).

      How much can rent increase in nj 2023? ›

      The current allowable increase for leases expiring between January 1, 2023 through June 30, 2023 is seven point nine percent (7.9%).

      What's the most rent can go up? ›

      Landlord may increase rent once every 12 months, limited to 3% of the current rent, or the regional Consumer Price Index (CPI), whichever is higher. Rent increases are expressly subject to the provisions of AB 1482 California Tenant Protections Act (Cal. Civ. Code §§ 1946.2 and 1947.12).

      What cities in NJ have rent control? ›

      New Jersey has no statewide rent control laws in place.

      What is the heat law in New Jersey? ›

      Under the state housing codes, from October 1 to May 1, the landlord must provide enough heat so that the temperature in the apartment is at least 68 degrees from 6 am to 11 pm. Between 11 pm and 6 am, the temperature in the apartment must be at least 65 degrees.

      Is rent going higher in Jersey City? ›

      Jersey City rents jumped almost 28% from a year earlier, the biggest annual increase among 100 US cities measured by the apartment listings website.

      Do you have to make 40 times the rent in New Jersey? ›

      So, an easy way to determine how much rent you can afford is to divide your gross annual income by 40. If you make $90,000 per year, then you can afford a monthly rent of $90,000/40 = $2,250. You must have heard the experts recommend that we should spend no more than 30% of our monthly income on rent.

      What is a landlord's right in New Jersey? ›

      According to New Jersey landlord-tenant law, landlords have the right to collect rent payments when they're due, use the security deposits to cover damages that exceed normal wear and tear and provide safe eviction procedures if the tenant fails to pay rent or violates the lease.

      What does rent control mean in NJ? ›

      According to state law in New Jersey, landlords are permitted to raise rent as often as they like as long as they give each tenant enough notice. However, the frequency of rent increases is restricted in many cities via municipal rent control regulations (for example, in Elizabeth, it's limited to once a year).

      How many people can live in a 2 bedroom apartment in NJ? ›

      This law permits two tenants per bedroom — or four people total — unless a lower or higher number can be justified. It can prove difficult for a property owner to justify fewer or more occupants, but it is possible so long as the limitation is within local jurisdictions.

      Are landlords responsible for pest control in NJ? ›

      The Landlord's Responsibility

      Pest control is also your legal obligation, as most states, including New Jersey and New York, hold landlords accountable for eliminating bugs, rodents, and other pests. Even if this language is not in your rental agreements, you are still likely liable.

      Are landlords responsible for air conditioning NJ? ›

      The landlord must maintain livable conditions in an apartment or rental home and must repair damages caused from normal wear and tear. This includes repairing existing air conditioning in a rental.

      What is good cause to not renew a lease in NJ? ›

      In New Jersey a landlord is not allowed to refuse to renew a lease with a tenant without grounds for “good cause”. Grounds for good cause may sound obvious, but they include the following reasons: Failing to pay rent when due or owed. Disorderly conduct that disturbs the peace and quiet of neighbors.

      How long can a tenant stay after the lease expires in NJ? ›

      As long as the tenant does not violate any rules, they can stay until their rental period ends. But if they stay in the property even a day after their lease/rental agreement ends and have not arranged for renewal, landlords can issue a written notice to the tenant to move.

      How much time does a landlord have to give you to move out in NJ? ›

      The tenant has three (3) business days to move all persons and belongings from the premises. If the tenant does not move after three (3) business days from the time the warrant for possession was served on the tenant, the landlord may arrange for the Court Officer to have the tenant evicted or locked out.

      Is rent increase unconscionable in New Jersey? ›

      New Jersey has no statewide formula for rent increases. However, NJ's Anti Eviction Law states that “a landlord cannot make you pay an increase in rent that is so large that it is unconscionable, meaning that it is extremely harsh or so unreasonable as to be shocking.”

      How do I evict a tenant in NJ without a lease? ›

      For a tenant with no lease or a month-to-month lease in New Jersey, the landlord can serve them a 30-Day Notice to Vacate to terminate the tenancy. This lease termination notice allows the tenant 30 calendar days to move out.

      How much can a landlord increase rent in Elizabeth NJ? ›

      Elizabeth, NJ - The Elizabeth City Council voted to boost the rent cap by removing the $20 cap and replacing it with a 3% cap as it renewed the rent control statute, which was due to expire at the end of the year despite heavy pressure from tenants, community, church, and labor organizations.

      What cities have the highest rent increases? ›

      Half of America's most expensive cities for apartments are in California: study
      RankMetropolitan Statistical AreaChange Since February 2022
      1New York, NY+ 12.8%
      2San Francisco, CA+ 4.2%
      3Boston, MA+ 2.0%
      4San Jose, CA+ 7.4%
      6 more rows
      Mar 14, 2023

      What city has seen the highest increase in rent? ›

      These metro areas saw the biggest percentage jump in median rents in 2022.
      • Raleigh-Cary, NC. 21.9%
      • Oklahoma City, OK. 17.9%
      • Indianapolis-Carmel-Anderson, IN. 15.8%
      • Cleveland-Elyria, OH. 14.9%
      • Nashville-Davidson-Murfreesboro-Franklin, TN. 14.8%
      • Salt Lake City, UT. 13.9%
      • Pittsburgh, PA. 12.4%
      • Memphis, TN. 10.1%
      Dec 16, 2022

      Who is exempt from AB 1482? ›

      A single family home is exempt unless it's owned by a real estate investment trust (REIT), a corporation, or an LLC where one of the members is a corporation. The owner must inform the renter in writing that the tenancy is not subject to the rent cap and just cause limitations.

      Where do most people rent in NJ? ›

      Newark, the state's largest city, has the nation's highest percentage of renters, with 79.15%, followed by Elizabeth, at 75.5%, and Paterson, at 75.32%, according to the survey based on U.S. Census data. Jersey City ranked sixth, at 71.7%, according to the survey.

      Can a landlord harass you for rent in NJ? ›

      Landlords may attempt to harass or intimidate their tenants to force them out of their apartments. Under New Jersey law, many of these actions are considered disorderly persons offenses - which are criminal.

      Are basem*nt apartments legal in Jersey City? ›

      Jersey City Rules For Basem*nt Apartments

      Jersey City maintains that basem*nt space cannot be used as a habitable room or living unit. Additionally, the basem*nt space may not be used as a dwelling unit bathroom, guest house, or boarding house.

      Can I sue my landlord in NJ? ›

      The short answer is yes, a landlord can be sued. This is because all residential property owners in New Jersey are required by law to register their property. Not doing so would be breaking the law.

      Do tenants pay for heat in NJ? ›

      Under the NJ state housing codes, landlords must provide enough heat so that the temperature is at least 68 degrees from 6 a.m. to 11 p.m. and at least 65 degrees from 11 p.m. to 6 a.m. from October 1 through May 1.

      What is considered landlord harassment in New Jersey? ›

      Landlord harassment is when the landlord creates conditions that are designed to encourage the tenant to break the lease agreement or otherwise abandon the rental property that he or she is currently occupying.

      Why is rent so expensive in Jersey City? ›

      Rent On The Rise

      Jersey City has grown as an epicenter of culture in New Jersey over the last decade and with that growth, comes higher priced rentals. Throughout the U.S., rent is up seven percent overall. There is a high demand for homes, primarily among young adults and recent graduates.

      Which month is the cheapest to rent? ›

      The lowest rental rates are usually found between October and April, particularly right after the December holiday season. Fewer people are interested in moving—the weather's bad, schools are in session, etc. So individuals renting between the months of December and March typically find the best rental bargains.

      What is the cost of living increase in New Jersey? ›

      Inflation in New Jersey is now around 5.5 percent. The Social Security Administration has recognized the reality of inflation and the diminishing spending power it creates for people who are retired. That's why the SSA increased its 2023 COLA of 8.7 percent.

      How do I get around 3x rent? ›

      If you don't make 3 times the rent, you can still try to get the apartment by putting up a larger security deposit, finding a guarantor, or demonstrating your fiscal responsibility by showing your potential landlord bank statements that show you being responsible with your money and discretionary spending.

      How do you get around the 40X rent rule? ›

      Five Ways to Get Around the 40X the Rent Rule
      1. Increase Your Security Deposit Amount. ...
      2. Maintain A High Credit Rating. ...
      3. Get A Guarantor. ...
      4. Partner with a Surety Company. ...
      5. Consider Different Apartments.

      How strict is 40X rule? ›

      Landlords ask you to have 40 times the monthly rent as a salary because of the sheer price of living in New York City. However, having 40 times the rent means you'll spend less than 30 percent of your income on rent. This makes it officially affordable according to most economic standards.

      Can I refuse to let my landlord show my apartment NJ? ›

      In general a landlord does not have the right to enter the residential rental premises without consent of the tenant or a judgment from the Superior Court of New Jersey. Even if given legal authority to enter the rental premises, the landlord may only enter in a peaceable manner.

      What is New Jersey tenants in common law? ›

      A tenancy in common is a form of ownership in which two or more people own an undivided interest in an entire property. Under this form of ownership, there is no right of survivorship, meaning that ownership does not automatically transfer to the other owner(s) in the event of one owner's death.

      Can a landlord ask for first and last month rent plus security in New Jersey? ›

      Landlords are not permitted to require more than one and one half times the monthly rental payment as a security deposit. Any additional yearly security deposit increase may not exceed 10% of the current security deposit. There is no time limitation within the statute for making a request of a deposit.

      Is there a rent freeze in NJ? ›

      All renter households with incomes below 120% of their county's Area Median Income are permanently protected against eviction or removal at any time for nonpayment of rent, habitual late payment of rent, or failure to accept a rent increase that accrued from March 1, 2020 through August 31, 2021.

      Does NJ have a rent control law? ›

      The State of New Jersey does not have a law controlling or governing rent increases or rent leveling. However, any municipality within the State of New Jersey may adopt an ordinance controlling rent increases. Your municipal clerk can tell you if a rent control ordinance exists within your municipality.

      How much can a landlord raise rent in Jersey City? ›

      Jersey City has a rent control ordinance that limits increases to 4% annually for some buildings.

      Does Elizabeth NJ have rent control? ›

      Elizabeth residents enjoy rent control thanks to ordinances unique to Elizabeth. To learn more, see Elizabeth ordinance 5.70. 060 - Increases in base rent. Landlords are allowed to make money.

      Can a landlord charge a pet fee in NJ? ›

      Yes, pet rent is feasible and a better option. Deposits are refundable; fees are not refundable. Most tenants take responsibility for their animals.

      How much can you raise rent in Edison NJ? ›

      Rent Increases

      Atlantic City: This depends on the Consumer Price Index (CPI) Elizabeth: 3% - but limited to $20. Edison: A maximum of 5%.

      How much can I raise the rent in Elizabeth NJ? ›

      Elizabeth, NJ - The Elizabeth City Council voted to boost the rent cap by removing the $20 cap and replacing it with a 3% cap as it renewed the rent control statute, which was due to expire at the end of the year despite heavy pressure from tenants, community, church, and labor organizations.

      What is the most a landlord can raise rent? ›

      Raising rent in California

      Landlords are allowed to raise rent by a maximum of 10% every 12 months. That means if the CPI change is above 5%, the maximum increase caps at 10%.

      How long can a tenant stay after the lease expires NJ? ›

      As long as the tenant does not violate any rules, they can stay until their rental period ends. But if they stay in the property even a day after their lease/rental agreement ends and have not arranged for renewal, landlords can issue a written notice to the tenant to move.

      Can I use my security deposit as last month's rent in NJ? ›

      In New Jersey, a tenant is not usually allowed to use the security deposit as last month's rent. However, the tenant may have the option of using the security deposit as rent should the landlord fail to comply with the rules on holding the security deposit.

      Can my landlord evict me for having a dog NJ? ›

      If the tenant does not remove the pet, the landlord may file for an eviction for violating the lease due to a continuing nuisance created by the pet. The landlord has the burden of proving that the pet is a continuing nuisance.

      Can a landlord charge a pet deposit for an emotional support animal in NJ? ›

      Your housing provider cannot require you to pay an additional security deposit or pet fee, or obtain additional renter's insurance, in exchange for allowing you to keep an ESA. However, your housing provider may require you to pay for any actual damage the animal causes.

      Is Hoboken rent controlled? ›

      Rents in Hoboken are among the highest in the nation, but rent control laws in older buildings keep increases to the cost of living adjustment, while allowing landlords to pass along surcharges. Attempts to revise the 50-year-old Rent Control Ordinance have been hotly debated in the past, but some changes have passed.

      Does Bayonne NJ have rent control? ›

      Rent control was enacted in Bayonne by ordinance in 1972 with the Bayonne City Council adopting a new ordinance in 2011 continuing the protection for those tenants legally occupying a rent-controlled apartment.

      How much can a landlord raise rent in PA? ›

      Pennsylvania has no rent-control law. Landlords may raise the rent as much as they want. However, changes must be made in accordance with your contract (your lease).

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