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Rent Payment Laws in New Jersey

Although New Jersey doesn’t strictly regulate late fees or grace periods, it does require landlords to provide 30 days’ notice for rent increases—and gives tenants the chance to challenge them in court.


When it comes to paying rent in New Jersey, a lot of things are up to the lease. For most tenants, there’s no state-mandated grace period or legal limit on late fees (although they do have to be reasonable). That said, there are a handful of laws that deal with rent payment—including New Jersey tenants’ unique ability to challenge an unreasonable rent hike in court.

Grace periods aren't required—with one exception

New Jersey law doesn’t require landlords to offer a grace period for late rent, although they can include one in the lease—and, if so, it’s binding. There is one exception: senior citizens who are receiving social security benefits or other government pensions are granted a grace period of five business days.1 A business day is any day other than a Saturday, Sunday, or state or federal holiday.

Late fees aren't capped, but they must be reasonable

New Jersey allows landlords to charge late fees, but they must be reasonable and mentioned in the lease.2 To be considered reasonable, a late fee should compensate the landlord for any costs that resulted from the tenant’s rent payment being behind schedule—think bank fees, for instance. Anything beyond that could be considered unreasonable. In 1998, a New Jersey court determined that a late fee of $35 per day was unreasonable (based on the fact that if the payment had been 30 days late, the fees would have totaled more than 25% of the monthly rent).3

Unpaid late fees typically can’t be the basis for an eviction

Late fees are not considered part of the rent in New Jersey, unless a lease or another signed agreement notes otherwise.4 This may seem like a relatively minor detail, but it’s important because not paying rent—even a tiny portion of it—can be the basis for an eviction proceeding. So, in most cases, a tenant can’t be served eviction papers because they failed to pay a late fee.

Landlords have to give 30-day notice for rent increases

Landlords have to inform their tenants in writing before raising the rent. The notice period is a minimum of 30 days in New Jersey, for both month-to-month tenants and those with a longer lease term5—although a lease can always extend the notice period beyond 30 days. Local rent control ordinances throughout New Jersey may also require longer notice periods for rent hikes.

Rent increases must be reasonable

Although New Jersey doesn’t have any laws that specifically limit the amount that a landlord can raise the rent, the law does require rent hikes to be reasonable. If a tenant believes that a rent increase is unreasonable, the tenant can withhold the additional rent. The landlord then has the burden of demonstrating to a court that the fee increase is fair.6 (It’s important to remember that, although a tenant can challenge a rent increase, the landlord may seek to evict based on non-payment of rent if they continue to pay the original rent amount. If the court decides the rent hike is reasonable, the tenant could be legally evicted.)

In 1996, a group of tenants in New Jersey challenged their landlord when their monthly rent was raised from $195 to $250.7 The court found that the increase was reasonable because the landlord had not raised rent for three years—and the new monthly rent was in the ballpark of similar properties in the area.

In that case, the court outlined out five factors that can help determine whether a rent increase is reasonable

  • The amount of the proposed rent increase
  • The landlord’s expenses and profitability
  • How the existing and proposed rent compare to rents charged at similar rental properties in the area
  • The relative bargaining position of the parties
  • Whether the rent increase would shock the conscience of a reasonable person, based on a judge’s general knowledge

Landlords can immediately file for eviction if a tenant doesn’t pay rent

If a New Jersey tenant doesn’t pay their rent, a landlord can immediately file for eviction.8 This is different than most other states, which typically require landlords to give their tenants a two-week notice before they begin eviction proceedings for nonpayment of rent. There is one exception to this rule, however: tenants living in federally subsidized housing must be given 14 days’ notice.9

Landlords can evict tenants for habitually paying rent late

According to New Jersey law, “habitually” paying rent late is grounds for eviction.10 Unlike eviction based on failing to pay rent at all, eviction based on late payments requires several forms of advance notice. First, a landlord must send the tenant a written Notice to Cease telling them to stop paying their rent behind schedule. If the tenant pays late at least twice more after receiving the first notice, the landlord can send a second notice. This one, a Notice to Quit, gives the tenant 30 days to leave before a landlord can begin the eviction process.

This is only a general overview of the process—there are lots of other things that can trip up or delay the eviction proceedings. Evicting based on habitual late payments is a very technical endeavor, meaning it’s probably best to consult with an attorney on this one.

New Jersey does not have a statewide rent control law

New Jersey does not have a law that establishes rent control for the entire state.11 However, cities are allowed to pass their own laws that control local rent increases—like Newark, for instance, which has historically capped rent increases over a 12-month period at around 2%.12


[1] NJ Rev Stat § 2A:42-6.1 and NJ Rev Stat § 2A:42-6.3

[2] 447 Associates v. Miranda, 115 N.J. 522 (1989)

[3] Kuhn v. Hopkins, A-4507-96T1 (N.J. Super. App. Div. 1998)

[4] 447 Associates v. Miranda, 115 N.J. 522 (1989)

[5] “Rent Increase Bulletin,” New Jersey Department of Community Affairs (February 2008)

[6] NJ Rev Stat § 2A:18-61.1(f)

[7] Fromet Properties, Inc.v Dolores Buel, 294 N.J. Super 601 (N.J. App. Div. 1996)

[8] NJ Rev Stat § 2A:18-61.2

[9] NJ Rev Stat § 2A:18-61.2(h) and 24 C.F.R. § 966.4(l)(3)(i)(A)

[10] NJ Rev Stat § 2A:18-61.1(j)

[11] “2009 Rent Control Survey,” New Jersey Department of Community Affairs

[12] Newark Office of Rent Control

The information provided on this website does not, and is not intended to, constitute legal advice.