Initial Rent & Deposit?

[Joe P.]

Hi all,

I just purchased a property in Gloucester City; its a duplex with one unit rented, and another vacant. I've been trying to get tenants in with not much luck so far, and I had one prospective tenant say that my deposit requirements may be illegal.

The rent is $950 per month, and the security deposit is $1,250. I was telling folks that the initial deposit is first month's rent, last month's rent, and security deposit - a total of $3,150. This particular prospect indicated that I could only charge first month's rent and security.

I scoured the web and forums to see if there is anything preventing me charging first and last, but I don't see it. I'm concerned about being burned on that last month, which is why I want to charge it.

Would love some input from our local investors, and if anyone has a lawyer they want to recommend, I'm all ears as well! Was going to use the Rocket Lawyer landlord document for NJ and add an addendum for rules.

[Natalie Schanne]

@Joe P. - In New Jersey, the maximum security deposit (including any refundable pet fees) is 1.5x monthly rent. So for a $1000/mo rental, you can ask for $2500 = 1000 first month's rent + 1500 security deposit. You cannot hold last month's rent. If they don't pay you the last month, start the eviction process asap. Nobody wants that on his/her record so they'll pay if they're able.