You will be at the mercy of the system and courts, who wont read a word of your lease.

The whole issue would be murky if it ever had to go to court so the best thing to do is try and avoid it. 

we cant say 100% in either direction because we cannot see or know the extent of roach problem. what we do know though, is that health and safety concerns (which can stem from bug problems) are usually very frowned upon in the court system, especially in NJ which is very tenant friendly. if this went to court, you would be the big bad slumlord up against the poor, deprived tenant who was tricked into living in a roach infested apartment. of course, I have no way of knowing what the truth is, and I'll assume its not since you seem like a decent person. the fact though, is that the tenant should not have a roach problem the first month living there unless he or she lived like an absolute pig. if she had lived there 8 months, I would be more inclined to push the issue. since she has had bug issues since the beginning my instincts are telling me that what is right, would be to let her leave at the end of the month and agree to amicably end the lease.

However a few of my friends mentioned that I should take him to court and get the money back.  

I have a tenant that fell off the wagon into her second lease and is now 2 months behind...I already filed for eviction and have a court date on July 10.

If a Tenant violates the Declaration, Bylaws or Rules & Regulations, the owner shall also be held responsible. 6.

Lead paint, however is a significant problem as the Court system in Baltimore is very quick to go after Landlords who do not 100% remove the lead paint when a child in the city develops elevated lead levels. 

I know at the court house auctions in Texas, they will check your cashier's checks before you start to bid so there is verification of funds.

You can use all of these things in the court of law as supporting documents if you need to.

More people are declaring bankruptcy in retirement than ever before and this is only the beginning.