Renting in NJ - what to do with Security Deposit

[David K.]

Hello friends!

I am about to sign my first lease with tenants in NJ and they are giving me 1.5 security deposit.

Question - is there a law that I must follow where the tenant's security deposit must be placed into a separate escrow account which also must earn interest in tenant's name? If no such a law, then I am thinking to put the deposit into the emergency fund account that I keep for rentals/ repairs/ maintenance..

[Patrick M.]

David- you need to open an interest bearing account. Have the tenant complete a W9, (add their DOB and a cell #) I deal with chase- I tell them it is for a tenant account and it takes 5 minutes...