New Jersey Owner-Occupied Two-Unit Security Deposit Exception

The Security Deposit Law generally applies to residential rentals but contains an exception for qualifying owner-occupied premises with not more than two rental units. A tenant can invoke the Act’s protections by giving the landlord 30 days written notice.

Last reviewed: August 30, 20262 official sources cited

Owner-occupied premises≤ 2 rental units

Potential statutory exception.

Tenant can invoke Act30 days written notice

DCA guidance says the notice may be given during the tenancy.

Confirm the property setup

Before relying on this exception, confirm whether the owner actually occupies the premises and how many rental units are present.

Check the exact statutory category. New Jersey has special deposit timelines for defined displacement and lease-termination situations. Do not replace the ordinary 30-day rule with a shorter period unless the statutory conditions actually apply.

Official sources

New Jersey Department of Community AffairsN.J.S.A. 46:8-19 through 26 — Security Deposit Law ↗

Official DCA publication of New Jersey’s Security Deposit Law, including the 30-day return rule, 1.5-month cap, interest/trust requirements and special shorter timelines.

New Jersey Department of Community AffairsNew Jersey Security Deposit Bulletin — revised July 2025 ↗

Current DCA plain-language bulletin summarizing applicability, deposit amount, interest, return, deductions and special displacement rules.

Related New Jersey guides

Security Deposit →30-Day Return Rule →1.5-Month Deposit Cap →Interest & Bank Notice →