Is it necessary to have a written lease in the State of New Jersey?

No, the lease can be either oral or written, although a written form is recommended.

What about a signed move-in move-out inspection report?

A written signed inspection report is not required, however, it is recommended to protect both parties’ interests and help to avoid disputes. At move-in the tenant should make a list of everything that is broken, stained, defective or damaged, sign the list and ask the landlord to sign it as well. If the landlord does not cooperate, the tenant should take pictures and get an impartial witness to view the premises as well. Both tenant and landlord should have a copy of the list. On move-out, both parties should inspect the premises and fill in another copy of the list, and negotiate (if possible) or make note of any disputed items.

Can the landlord charge a deposit?

Yes, the landlord can charge a security deposit which cannot exceed the amount of 1 1/2 months’ rent. The deposit must be placed in an interest bearing account, and must, within 30 days of receipt, notify the tenant in writing of the name and address of the bank or lending institution where the deposit is being held, the amount of the deposit, the type of account and the interest rate. This same notice must be given to the tenant each year when the landlord pays the tenant the interest that has accrued on the security deposit (either on the date that the lease is to be renewed, or on January 31 in each year). All interest which accrues is to be paid to the tenant.

After a tenant vacates a rental property, the landlord must, within 30 days of the departure, return the deposit or provide a written statement as to the disposition of the deposit, and serve it upon the tenant either by personal service or by certified mail. The statement must itemize the total amount of the security deposit, plus interest accrued during the lease term, and set out the details of each deduction from the security deposit, if any. If the landlord fails to do so, the tenant can sue the landlord for double the wrongfully withheld security deposit.

When is the landlord allowed to increase the rent?

The landlord cannot increase the rent during an existing lease. For example, if the lease is for 1 year, the rent cannot be increased during the 1-year lease term. To raise the rent, the landlord has to wait until the lease is about to expire and then take action to end the lease. The landlord has to offer the tenant the option of entering into a new lease after the old lease expires, at the higher rent.

When the rent is increased in a month-to-month tenancy, the landlord must serve a 1-month notice to quit and terminate the old tenancy while offering a new tenancy at the increased rent.

Any notice of a rent increase that is not in writing and is not divided into two parts—(1) ending the old lease and (2) beginning a new lease at a higher rent—is not legal and the tenant does not have to pay the increase.

Rent increases are also limited to the amounts allowed under a local rent control ordinance if the community has adopted rent control and the rental unit is covered by rent control. More than 100 cities and townships in New Jersey have passed rent control ordinances.

There are two types of rent increases allowed by most rent control ordinances. First, the ordinances allow landlords to automatically increase the rent by a certain percentage each year (an annual increase). Second, the ordinances allow landlords to apply to the rent control board for an increase above the annual amount (a hardship increase).

When is rent considered late?

The law states that a landlord must allow a tenant a period of "five business grace days" to pay the rent. If a tenant pays the rent in the 5-day period, the landlord may not charge a late fee. "Business days" do not include Saturday, Sunday, or a national or state holiday.

How can a lease be renewed?

Many written leases will have a section explaining how the lease can be renewed, for instance, a provision that unless the lease is ended by either the landlord or the tenant, it will automatically be renewed for another year. But a yearly lease that is not renewed automatically becomes a month-to-month lease when the year in the lease ends.

A month-to-month lease will renew itself automatically for another month unless the tenant or the landlord acts to end the lease. This rule applies even if the lease agreement is oral and not in writing.

How can a lease be terminated?

To end a lease, either the tenant or the landlord must give the other a written notice before the end of the lease, stating that the lease will not be renewed. If this written notice is not given or is not given in the required time, then the lease will renew itself automatically, at least on a month-to-month basis, generally with the same terms and conditions.

To end a yearly lease, unless the lease says otherwise, the tenant must give the landlord a written notice of termination at least one full month before the end of the lease. Also, unless the lease says otherwise, the landlord must give the tenant at least one full month’s notice before the end of the lease to terminate a yearly lease so that the landlord can raise the rent or change other terms of the lease. A tenant cannot be evicted just because the landlord ends the lease.

To end a month-to-month lease, or any rental agreement that does not have a specific lease term, either party must give the other a written one-month notice BEFORE the month starts.

Can a tenant sublet the premises?

If the lease allows for it, a tenant can sublet the premises with the landlord’s consent.

When is the landlord permitted to enter the premises?

The landlord can only enter the premises in the following circumstances:

* If the tenant invites or asks the landlord or one of the landlord’s workers to come in.

* If the landlord needs to inspect the apartment, but only at reasonable times and reasonable intervals, and only after giving the tenant reasonable notice (at least 24 hours) that he/she is coming to inspect. For buildings containing three apartments or more, there is a regulation requiring 1 day’s notice before a landlord can come into an apartment to make an inspection or do repairs.

* To do maintenance or make repairs, at a reasonable time and after giving reasonable notice.

* To do emergency repairs. Even in the case of an emergency, the landlord should try to give some notice if at all possible, even if the notice is just a phone call.

On what grounds can a landlord evict a tenant?

A landlord may bring an action to evict a tenant for the following reasons:

Disorderly conduct. A landlord can evict a tenant who is disorderly to the point that their conduct disturbs the peace and quiet enjoyment of other tenants. The landlord must first issue a notice to cease, and if the behavior continues after the notice is given, the landlord can then issue a notice to quit with a demand for possession. The landlord must wait at least 3 days after issuing the notice to quit before an eviction action can be brought.

Willful or grossly negligent damage to the premises. A tenant can be evicted who, willfully or through gross negligence, causes or allows damage to the rental premises. This does not require a notice to cease but does require a written notice to quit with a 3-day waiting period before an eviction action can be brought.

Violation of the rules and regulations of the landlord and/or violation of lease covenants. A landlord can evict a tenant for a substantial violation of reasonable rules and regulations of the landlord or for substantial violations of the covenants of the lease. A notice to cease is required, along with a notice to quit. There is a 1-month waiting period from the service of the notice to quit before a Summons and Complaint for eviction can be filed.

Failure to pay rent after an increase. A landlord can evict a tenant who fails to pay rent after a notice of increase. No notice to cease or notice to quit is required.

Habitual late payment of rent. A tenant can be evicted for habitual late payment of rent. A notice to cease and a 1-month notice to quit are both required.

Personal occupancy by owner or purchaser of rental unit. Owners of 3 cooperative or condominium units or less, or the owner who occupies a building of 3 residential units or less may bring an action to evict a tenant if the rental unit is to be personally occupied by the owner or buyer of the unit. The landlord must serve a 2-month notice to quit.

Occupancy as consideration of employment. In some cases, an employee will be offered a unit "rent free" as a benefit of employment. This only applies when the tenant became an employee simultaneous to or before becoming a tenant. If the tenant quits or loses employment with the landlord, the landlord only needs to serve a 3-day notice to quit terminating the tenancy and demanding possession. Where an existing tenant becomes an employee of the landlord, they must be given an opportunity to continue in possession under a lease for payment of rent.

In the case of a small building (three apartments or less), in which the owner actually lives in one of the apartments, the landlord does not have to prove one of the causes for eviction under the Anti-Eviction Act. But the landlord must still take a tenant to court to evict.

It is illegal for the landlord to evict a person by himself, even if the landlord has gone to court and gotten an eviction order. A constable must be present at the premises for an eviction to be legal. It is illegal for a landlord or anyone else to force a tenant to move out without going through the legal eviction process.

A landlord cannot force a tenant to leave by changing the locks, cutting off utilities or services, using threats or threatening behavior, or harassment. It is also illegal for a landlord to seize a tenant’s property for unpaid rent.

Residents of licensed rooming and boarding homes are protected from self-help evictions. Owners must evict residents through the same court process as any other tenant. Guests in hotels and motels do not have to be taken to court to be evicted. The hotel owner or operator can lock guests out of their rooms if they don’t pay their bills or if they disturb the peace. However, some hotels and motels are really rooming and boarding houses because people live there as their only residence for extended periods of time. The law considers a hotel or motel a rooming and boarding house if at least 15 percent of the rooms are occupied by people who have lived there for more than 90 days. This means that all of the residents (but not the guests) at the hotel or motel have the same rights as rooming and boarding house residents, including the right to be evicted only through court process.

The foregoing summary is provided for information purposes only and is not to be considered legal or business advice. The information may not be complete, accurate or applicable for any particular situation and should not be relied upon.