Sponsored by:
Senator RAJ MUKHERJI
District 32 (Hudson)
SYNOPSIS
Limits amount of residential rental property application fee.
CURRENT VERSION OF TEXT
As introduced.
An Act limiting the amount of an application fee for a residential rental property and supplementing chapter 8 of Title 46 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. An owner or lessor of a residential rental property, or agent thereof, shall not require more than a sum equal to five percent of one months rent according to the terms of contract, lease, or agreement as an application fee to lease or sublease the residential property for dwelling purposes, unless the sum exceeds $75. If five percent of one months rent exceeds $75, however, then an owner or lessor shall not require more than $75 as an application fee.
2. A landlord who violates section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall:
(1) be liable for a penalty of $1,500, plus costs and attorneys fees, which shall be collected and enforced by summary proceedings pursuant to the Penalty Enforcement Law of 1999, P.L.1999, c.274 (C.2A:58-10 et seq.). The Superior Court, Law Division, Special Civil Part in the county in which the residential rental property is located shall have jurisdiction over the proceedings. Process shall be in the nature of a summons or warrant, and shall issue upon the complaint of the Commissioner of Community Affairs or the Attorney General; and
(2) also, at the discretion of the applicant for the residential rental property, be subject to a separate cause of action by the applicant in the Superior Court, Law Division, Special Civil Part in the county in which the rental premises are located. The applicant may recover $250 for an offense by the landlord, in addition to reasonable attorneys fees or expenses.
3. This act shall take effect on the first day of the fourth month next following enactment.
STATEMENT
This bill would establish a limit on an application fee a residential landlord may require. The bill imposes a limit equal to the lower of five percent of the monthly rent or $75.
The bill also establishes a penalties for a landlords violation of the bill of $1,500, plus costs and attorneys fees, enforceable in an action brought by the Commissioner of Community Affairs or Attorney General and in a separate cause of action brought by and at the discretion of the applicant for the landlords residential property, who may recover, in addition to the $250 penalty, reasonable attorneys fees or expenses.
This bill would take effect on the first day of the fourth month next following enactment.