Security Deposit Account in NJ - Do I include account number in lease

[Andy S.]

Hi All,

I run into this all the time. I have a clause in the lease that says the security deposit will be held in so and so bank with so and so address and interest rate will be xyz. Per NJ law, must I include account number in the lease? What happens is, if I include this account number, at the time of lease signng, I have to leave it blank. Once the lease is signed, I go to the bank and open a new security deposit account, and then the bank provides account number, which I then manually enter in the lease and have the tenant sign the lease again.

Any guidance on avoiding the hassel of having to sing the lease twice lease?

Regards

[Mohammed Mahfuz Rahman]

In New Jersey, you don't need to include the account number in the lease for the security deposit. As long as you specify the bank name, address, and interest rate in the lease, you're meeting the legal requirements.

To avoid the hassle of having to have the tenant sign the lease twice, you can simply leave the account number blank in the lease and note that the deposit will be held in a specific account at a designated bank. After the lease is signed, you can open the security deposit account and then provide the tenant with a formal notice that includes the account number, bank details, and interest rate.

This notice can be a simple letter or email, which should meet NJ’s requirements without needing to amend the lease or have the tenant sign it again. This approach saves you time and effort while keeping you in compliance.

[Ayelet Wiedermann]

@Andy S., @Mohammed Mahfuz Rahman is correct. You don't need to include the specific details on where the security deposit is held in the lease. Once the lease is signed, the security deposit paid and deposited, send the tenant a receipt with detailed information within 30 days.