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NJ Landlord did not return $800 security deposit - Filed Small Claims Complaint in: Subjects › Personal Finance

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This is my first post so please take it easy.

Facts:
7/1/08 Began a month-to-month lease with landlord in NJ for $800/month.
8/8/09 Landlord gives me a letter saying she is going to increase rent to $900 as of today. This is a basement apartment and I had been looking to move for a while.
8/10/09 I give letter to landlord stating I will be moving out by August 31st, 2009. Please send security deposit to this address...
8/29/09 I move out and leave the place super-clean. I ask landlord to inspect the place and she refuses to sign letter.
10/01/09 It has been 30 days and no sign of security deposit.
10/05/09 I call landlord and ask if she sent security deposit. She says she did not because I did not give her 45 days notice.
10/06/09 I file Small Claims Complaint at Bergen County Justice Center for $1600.
10/14/09 I just received summons (court date is 10/21/09 at 8:45AM).
10/21/09 I went to court this morning. Landlord did not show up. I have a conditional default judgment. I have to fill out a ton of paperwork. For example, I have to prove that she is not active duty in the Military ... Ughh...It will be a while before I can even start filling out paperwork to start the collection process.

Does anyone have any experience with Small Claims Court? I know NJ statute says 30 days notice should be given before I vacate, so I was willing to only take the pro-rated 21 days. However, she did not return anything or write a letter stating damages. What will happen at Small Claims? Any knowledgable FWers, please chime in.

Thanks in advance.

Message edited by: mannylee on 2009-10-21 16:54:15 CDT

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8/10/09 I give letter to landlord stating I will be moving out by August 31st, 2009. Please send security deposit to this address...
8/29/09 I move out and leave the place super-clean. I ask landlord to inspect the place and she refuses to sign letter.

You didn't meet the statute's requirement if that's what it is. What did your lease say? How much notice? Sounds like you didnt meet the terms of the lease nor the terms of the statute. I'm not sure what your basis is for suing.

Message edited by: kwest on 2009-10-09 13:27:41 CDT
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What does your lease say?


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Lease didn't say anything about giving notice. I found out after I left that the statute says 30 days.
So, then that's technically 30 days notice to September 10th. Doesn't that mean she should return 21 days?


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If the deposit was $800 and the 21 days even less, why are you filing for $1600?


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I don't understand the pro-rated return of the security deposit. I was always under the impression that if you didn't meet some term (in this case the notice), you lost all of the security deposit; the only way to get a part of the deposit back was if some repairs costs less and there was money left over.


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When I went to small claims, the finance clerk said to make sure to put down double the security deposit.
I'm not sure how well it pertains to me, but I did it.

Found this on NJ Law site:

If, after 30 days, the landlord has not returned your security deposit, you can file a complaint against the landlord in Small Claims Court. The Rent Security Deposit Act states that if the court finds that a landlord wrongfully refused to return all or part of a tenant’s security deposit, the court must order the landlord to pay the tenant double the amount of the security deposit if it is not returned at all, or double the amount that the landlord wrongfully deducted from the deposit.

When you file your Small Claims Court complaint, make sure you ask for double the amount of the deposit. (Note: Even if you forget to ask for double the amount of money when you fill out your complaint, the court still must give you double because the law requires it.) Cite: N.J.S.A. 46:8-21.1; Gibson v. 1013 North Broad Assoc., 172 N.J. Super. 191 (App. Div. 1980); Hale v. Farrakhan, 390 N.J. Super. 335 (App. Div. 2007). If some of the deposit was returned, be sure to ask for double the amount that you feel the landlord should not have deducted from your deposit. Cite: Cottle v. Butler, 257 N.J. Super. 401 (Law Div. 1992). If you go to Small Claims Court, also write on the complaint the words “together with interest and costs of the suit.” This means that you will get the interest and the money that it costs you to file the complaint ($20 plus mileage). The court should also award you reasonable attorney’s fees if you hired an attorney.


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In a lot of places, the deposit is an entirely separate issue from rent. Even if you do owe some rent, and it sounds like you do, some landlords are prohibited from collecting that from a security deposit. What does your lease say about the deposit? Cross check that with your state and local laws.

We took the advice to make our security deposit a different amount than monthly rent to highlight the difference. As a landlord, we don't want tenants to think the funds can be used either way, in case they want to skip paying their last month's rent and "use" the deposit instead. That doesn't work because we need a bit of time after they leave to determine if any repairs or extraordinary cleaning is required, and what that will cost.


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I understand the pro-rated part doesn't make much sense. I didn't realize that it was 30 days notice until after I left and started researching. I figure that I gave 30 days notice on August 10th, so I should only be held accountable until September 10th. I did pay August rent in full before August 1st, so I was covered until August 31st in terms of rent. Should I be held liable for all of September?


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mannylee said:I did pay August rent in full before August 1st, so I was covered until August 31st in terms of rent. Should I be held liable for all of September?

What does the lease say in terms of partial months? Depending on the language, you might owe all of september as well.


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The lease does not say anything in terms of partial months. That is why it is confusing to me.


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So the new rent amount was supposed to be effective with the September payment or did you owe an additional $100 for August? Since it sounds like you moved out to basically opt-out of a rent increase, I wonder how that plays into rules for giving notice? I also wonder (both what the lease and laws) say about notice for rent increases.


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ldybgs123 said:So the new rent amount was supposed to be effective with the September payment or did you owe an additional $100 for August? Since it sounds like you moved out to basically opt-out of a rent increase, I wonder how that plays into rules for giving notice? I also wonder (both what the lease and laws) say about notice for rent increases.

Ok. I just learned how to quote. The lease does not say anything about security deposits other than to refer to the NJ Rent Security Deposit Act. Although the lease is 5 pages, it does not mention rent increases either because it is again covered by NJ statute:

Notice terminating lease and notice of rent increase.

The law requires that, for a landlord to raise your rent, you must be given proper written notice. A proper notice must inform the tenant that the current written or oral lease is being ended and that the tenant can stay in the rental unit by signing a new lease at a higher rent. (See The correct way to increase the rent.)

If your lease is monthly, a proper notice must explain that your existing lease will be terminated or ended in one full calendar month. You must receive this notice at least one month before your lease ends. The notice period may be greater, depending on what your current lease says. If your lease is for one year, the notice must explain that your lease will terminate on the date the lease ends, and you must receive this notice at least one month before that date. The notice can be for a longer period, such as 90 days before the lease is to end, if the lease requires it.

In addition to ending the lease, the notice must also say that, at the end of your current lease, you have the choice of accepting a new lease at the higher rent. If you decide to sign the lease and stay on as a tenant, you must pay the rent increase. Cite: Harry’s Village, Inc. v. Egg Harbor Tp., 89 N.J. 576 (1982).

Any notice of a rent increase that is not in writing and is not divided into two parts—(1) ending the old lease and (2) beginning a new lease at a higher rent—is not legal, and you do not have to pay the increase.


I am wondering if I should play that card when I go to court. She did say "the rent will be $900 from now on" on the rent increase notice dated August 8th. All replies are greatly appreciated.


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She gave zero days notice on the rent change, and you notified her you were leaving at the next month end?

That sounds entirely reasonable to me, no matter what the statute might say.


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this was a repeat to previous message that I thought didn't get uploaded.

Message edited by: mannylee on 2009-10-09 14:11:47 CDT
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taxmantoo said:She gave zero days notice on the rent change, and you notified her you were leaving at the next month end?

That sounds entirely reasonable to me, no matter what the statute might say.

I hope you are right, taxmantoo!

Any landlords out there? What do you think?


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It really depends on the lease, local laws, and judge, manny, but it does seem like this landlord has neglected to return money that's due to you (or provide details on expenses taken out of the deposit). Courts tend to be very tenant friendly, so if a landlord is clearly at least partially wrong, I'd expect a court hearing to go very much in the tenant's favor.


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Thanks Tim. My parents are landlords and I have helped them along the years with notices and such. We gave three months notice for rent increases and were always prompt with repairs.

This landlord seemed really nice but did not follow through on a lot of things. I had to buy smoke detectors and a carbon monoxide alarm and get reimbursed. I guess the lesson is to not trust people too easily. It sucks because I don't want to lose faith in people. I'm only 24.


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mannylee said:It sucks because I don't want to lose faith in people. I'm only 24.

Well, you're still young. So if you don't lose your faith in people now, you have plenty of time for that to happen.


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