If you are a landlord in NJ, you must read this.
http://www.lsnjlaw.org/publications/pages/manuals/tenantsrights.pdf
Applicable law
http://www.state.nj.us/dca/divisions/codes/publications/pdf_lti/evic_law.pdf
General instructions. Listed below is a summary of basic landlord tenant procedures, this is meant to guide you and is not a complete detail of landlord tenant law.
- Are you a registered landlord? You must be a registered landlord to file an eviction.
If you have 2 or less units must register with municipality, call your township to find out what to do. You must be a registered landlord. If you have 2 units or more you must register with the Department of Community Affairs. We need a copy of this registration. Mobile Home Parks need a copy of their license.
Example Local Registration Form:
Department of Community Affairs
http://www.nj.gov/dca/divisions/codes/publications/pdf_lti/landlord_idnty_law.pdf
This is different from a Certificate of Occupancy. Apartments need new Certificates of Occupancy when a rental occurs. Lack of a Certificate of Occupancy does not prevent a landlord from filing for an eviction.
The tenant should be given a copy of your landlord registration statement and the tenant truth in renting booklet.
http://www.nj.gov/dca/divisions/codes/publications/pdf_lti/t_i_r.pdf
- Is there a written lease? If so send us a copy of it. Are legal fees and late fees due and payable as additional rent in the lease? If not, you cannot add these costs to the eviction. If there is no lease the case is for rent only.
- Is the tenant section 8 or assistance? If so we need information on that to notify the agency. You cannot get late fees and legal fees. Please send us the agency information.
- What to send us? See the eviction information sheet attached or your ledger.
If nonpayment, send us the rents due by month and others costs and fees, are fees, utilities etc, this must all be specified in the lease. Make sure you list all people on the lease and known adult occupants on the eviction information sheet. You can use your own forms or send us a ledger but make sure all people who need to be served are listed.
- DO NOT TAKE SELF HELP! We file for eviction, you cannot lock the tenant out or shut off electric, etc or harass the tenant. You must wait till the court issues a judgment and a sheriff locks the tenant out. You cannot use self help. That is a crime! You have too much to lose.
- Process for Nonpayment of rent. You can file for eviction as soon as the tenant is late paying rent. Generally unless your lease says so, you do not need to send the tenant a notice of late payment.
If you send information requesting an eviction, we acknowledge receipt. If you do not receive a response from us within 48 hours, call my office and confirm that we have your information.
After we file, court takes at least 5 weeks. So it is important to file for eviction if the tenant owes 1 months’ rent. Do not let the tenant get too far behind, or they cannot get aid or they may file bankruptcy. If the tenant files bankruptcy prior to court, there are big problems so do not let the tenant get more than 1 month behind before you file.
Court is now in person and you generally do have to be there.
At court if the tenant shows up, we talk to them and try to enter into a payment agreement.
If the tenant does not show up, we get a default. In some courts we can enter into agreements ahead of time but they must be approved and submitted to the court to be enforceable. It is best to make the tenant come to court even if there is an agreement.
If the tenant does not show up, we file for default and a warrant for removal see #8.
- If you enter into an agreement there are two types, stay and pay, or vacate. We have the forms for both agreements; we must use the courts forms. Do not enter into your own form of agreement. If the tenant breaches the agreement, you must tell us within 30 days, hopefully less. We only have 30 days to file a breach or we must start the eviction over again.
- Defaults or breaches. We request warrants from the court, this can take up to 3 weeks. Let us know if you see a warrant served and send us a copy of it. The tenant has 3 business days after the warrant to move or file for a stay. You must tell us if you want a warrant or if the tenant breaches, us within 30 days, preferably less. We only have 30 days to file a breach or we must start the eviction over again.
- The tenant may file for a stay for 7 days, this is automatic. The court may grant a stay hearing under extenuating circumstances, like social services is approving the tenant for payment and the tenant is waiting for a letter. We object but some courts give them time some courts do not.
- Warrants and lockouts. There are additional court costs do breaches, warrants and lock outs. You must arrange for the lockout with the sheriff after the warrant is issued. You must make this call and you must be at the property. The Sheriff’s name and phone number is on the warrant. You must call the Sheriff within 30 days of the warrant being issued. Additionally the sheriff will want a check for $61 to do the lockout and you must provide a locksmith. We do not get copies of the warrants from the court. You need to alert us if a warrant is not issued.
- Tenant Move outs. If the tenant moved out and gave you the keys, make sure you get this in writing. Then you do not need a lock out. If you do not have the keys and a letter from the tenant saying they left, you must get the warrant and the lock out.
- Abandoned Property. Tenants have 30 days to get their property out of the apartment. You should send the tenant a letter about property if they left it there. We have sample letters for you. You may not dispose of the tenant’s property for 30 days after lock out. You can put it in storage. Take pictures! Please do not keep these pictures on your phone, print them out. We cannot introduce phone pictures in court.
- Security Deposits. If you have a security deposit, you must notify the tenant where the deposit is within 30 days of when you get it and tell them the interest rate. You must pay the tenant the annual interest earned on the security deposit. You may not have a security deposit for more than 1.5 times the rent. You must return the security deposit within 30 days of the tenant moving out or send the tenant a letter detailing what you did with the deposit, payment of back rent, damages, etc. If you do not do this, you may be liable for double damages and legal fees.
- Landlord tenant court is to get possession only. No money judgments are entered against the tenant. If you wish to proceed with a separate collection case tell my office and we will recommend a collection company. We do not do this.
- Notice Cases. If the tenant is being evicted for nonmonetary reasons, habitually late, dog bite, threats, disturbances, etc, these matters are handled on an hourly billing basis.
- NOTICES TO QUIT AND WARRANTS. Once we have issued a notice to quit to the tenant or requested a warrant do not accept rent! If you do, you may have invalidated the eviction. Send the rent back!
- Once a tenant files for bankruptcy, everything stops until we get permission from the bankruptcy court to move forward. This is a separate action and is too complicated to cover in this summary. Needless to say, it is expensive and difficult so do not make it worthwhile for the tenant to file bankruptcy. File evictions when the tenants are 30 days late or less.
- NJ Lead law for properties built before 1978 must have lead inspections on re-renting, resale or by 7/18/24
https://www.nj.gov/dca/divisions/codes/resources/leadpaint.html
- FLOOD NOTIFICATION – You must notify your tenants if they are in a flood zone see the sample letter below. You must do this by March 20, 2024. On sales of property you must disclose the flood risk in the property disclosure statement.
https://www.nj.gov/governor/news/news/562023/20231221a.shtml
https://www.nj.gov/oag/newsreleases23/2023-1220_Flood-Risk-Notice.pdf
There is a flood notification tool provided by NJ attached that must be sent to tenants in a flood zone and must be signed by the tenant. Additionally, your leases should have the following language in the insurance section:
FLOOD INSURANCE: Flood insurance may be available to renters through FEMA’s National Flood Insurance Program to cover your personal property and contents in the event of a flood. A standard renter’s insurance policy does not typically cover flood damage. You are encouraged to examine your policy to determine whether you are covered.
- Criminal background checks:
When a prospective tenant applies for housing you cannot ask about criminal background other than if they are a lifetime sex offender. The law in this area is very complicated and there are high penalties for violating it.
https://www.njoag.gov/about/divisions-and-offices/division-on-civil-rights-home/fcha/
- Do not give out income requirements for prospective tenants over the phone or electronically. If they are on section 8 those requirements do not apply and they can sue you for saying that. For example do not say your income needs to be two times the rental amount. There are “shoppers” who go around asking this and then suing people who answer it.
I hope that this answers your basic questions. Feel free to email me with additional questions lorijdcpa@gmail.com or call me 856-596-9300