New Jersey tenant screening and landlord-tenant law

Complete tenant background checks in minutes.

New Jersey tenant screening

Tenant screening generally means reviewing an applicant's credit, criminal, and rental history before deciding whether to rent to them. New Jersey layers a notably detailed set of state-specific requirements on top of the federal Fair Credit Reporting Act (FCRA) — most significantly the state's Fair Chance in Housing Act governing criminal-history review, a statewide source-of-income protection under the New Jersey Law Against Discrimination (NJLAD), a security-deposit cap and interest regime, and a statewide "good cause" eviction requirement. Because rent control in New Jersey is decided municipality by municipality, it's generally worth checking local rules too before finalizing a lease.

Run background checks on tenants

Are you a current tenant or applicant? Run self background checks here>

How to screen a tenant in New Jersey

  • Before accepting any application fee, disclose in writing whether your eligibility criteria include reviewing criminal history, and inform the applicant of their right to submit evidence of inaccuracies or mitigating/rehabilitation factors (N.J.S.A. 46:8-55(b)) — a New Jersey-specific requirement beyond FCRA.
  • Don't ask about criminal history on the application or make any oral or written inquiry into criminal record before issuing a conditional offer, with narrow exceptions for certain drug-manufacturing convictions in federally assisted housing and lifetime sex-offender registrants (46:8-55(a)).
  • Get FCRA-compliant authorization and run the consumer report through a screening company once a conditional offer has been made.
  • If criminal history is part of your process, only weigh convictions within New Jersey's permitted categories and lookback windows, and perform the individualized assessment state law requires, before withdrawing a conditional offer (46:8-56) — see below for the specific factors.
  • Evaluate income using all lawful sources, including rental-assistance vouchers and any military or veteran federal housing allowance, which must be counted as income for minimum-income qualification purposes (46:8-51).
  • If you deny an applicant or withdraw a conditional offer, send the required FCRA §615 adverse action notice for consumer-report-based decisions and, if criminal history is involved, also provide New Jersey's specific written withdrawal notice with reasons and appeal/record-request rights (46:8-56(c), 46:8-57).

Screening rules to follow in New Jersey

Screening fees

New Jersey statutes do not cap the dollar amount of a rental application or screening fee. What New Jersey does require is procedural: before accepting any application fee, a housing provider must disclose in writing whether criminal history is part of the eligibility criteria and inform the applicant of related rights (46:8-55(b)).

Criminal history

New Jersey's Fair Chance in Housing Act (N.J.S.A. 46:8-53 through 46:8-57, P.L.2021, c.110) is one of the more detailed state criminal-history-in-housing laws available. It generally: applies to "housing providers" renting "rental dwelling units" (excluding owner-occupied buildings of four units or fewer); bars any criminal-history inquiry before a conditional offer is made; permanently bars considering arrests without conviction, expunged or pardoned convictions, vacated/nullified convictions, sealed records, and juvenile delinquency adjudications; after a conditional offer, limits consideration to specified serious convictions (no lookback limit — e.g., murder, aggravated sexual assault, kidnapping, arson, human trafficking, certain sexual offenses, or lifetime sex-offender registration) or to graduated lookback windows by offense degree (generally 6 years for first-degree indictable offenses, 4 years for second- or third-degree, 1 year for fourth-degree, measured from conviction or sentence completion); and requires an individualized assessment of six factors (nature/severity of the offense, applicant's age at the time, time elapsed, evidence of rehabilitation, safety relevance, and connection to a prior rental) before a conditional offer can be withdrawn. Because this is codified state statute rather than federal agency guidance, it's not affected by changes to federal disparate-impact guidance.

Source of income

Yes — the NJLAD (N.J.S.A. 10:5-12(g)(1)) makes it unlawful to refuse to rent, or to discriminate in rental terms, based on "source of lawful income used for rental or mortgage payments," alongside NJLAD's other protected classes (race, color, religion, sex, familial status, disability, sexual orientation, gender identity/expression, and more). New Jersey separately requires landlords to count a military or veteran federal housing allowance as income when checking whether an applicant meets minimum income requirements (46:8-51).

FCRA and adverse action

Federal FCRA's §615 adverse-action baseline applies whenever a screening decision relies on a consumer report. New Jersey adds its own notice-and-appeal layer specifically for criminal-history-based decisions under the Fair Chance in Housing Act described above — a written notice stating the specific reason(s) for withdrawing a conditional offer, an opportunity to dispute or offer mitigating evidence, and, on timely request, free access to the information relied on within 10 days (46:8-56). New Jersey has no separate statute restricting the reporting of eviction cases a tenant won or settled, independent of ordinary court-record sealing rules.

Landlord obligations beyond screening

Security deposits

The deposit cap is generally no more than 1.5 times one month's rent, with any additional annual increase to the deposit capped at 10% of the current deposit (N.J.S.A. 46:8-21.2). Deposits generally must go into an interest-bearing account (or, for landlords with 10+ units, an eligible investment vehicle), with the tenant notified in writing of the depository and account details (46:8-19). Interest belongs to the tenant and must be paid annually or credited toward rent. Return is generally due within 30 days after the lease terminates, with an itemized statement of interest and any deductions (46:8-21.1); shorter timelines (5 business days, or 15 business days for certain domestic-violence-related lease terminations) apply for tenants displaced by fire, flood, or condemnation. A court finding for the tenant generally awards double the amount owed plus costs and, at the court's discretion, attorney's fees.

Rent and eviction rules

New Jersey has no statewide residential rent-control statute, but it also has no state law preempting local rent control. Confirm directly with Newark, Jersey City, Elizabeth, or the relevant municipality before relying on any local rent-control or rent-leveling ordinance under home-rule authority. New Jersey's Anti-Eviction Act (N.J.S.A. 2A:18-61.1) generally requires a landlord to establish one of an enumerated list of "good cause" grounds — such as nonpayment of rent, a substantial lease violation, property damage, certain code-compliance or condominium-conversion situations, or specified criminal convictions connected to the tenancy — before a court will order removal of most residential tenants. Notable exceptions apply, including owner-occupied buildings with two or fewer rental units and certain units occupied by an immediate family member with a developmental disability. Confirm exact eviction-notice day/month counts for your situation, including the "Notice to Cease" and "Notice to Quit" periods, which vary by the ground for eviction, through the New Jersey Courts' self-help eviction resources.

Rules that vary by city

Because rent control in New Jersey is a municipal choice rather than a statewide one, city-level differences mostly concern rent control and, in some cities, additional tenant-notice or licensing rules. Newark, Jersey City, Elizabeth, and Paterson may have local rent-control programs; confirm current requirements directly with the specific city before finalizing city-specific claims. New Jersey does not have a separate "unincorporated county" layer the way California does: every parcel of land sits within a municipality (city, township, borough, or town), so confirm landlord-tenant requirements with the applicable municipality.

Frequently asked questions

Is source of income a protected class in New Jersey? Yes. The NJLAD (N.J.S.A. 10:5-12(g)(1)) protects "source of lawful income used for rental or mortgage payments" statewide.

Can New Jersey landlords ask about criminal history on a rental application? Generally no. The Fair Chance in Housing Act bars criminal-history inquiries until after a conditional offer of housing is made, with narrow exceptions (N.J.S.A. 46:8-55).

How much can a New Jersey landlord charge for a security deposit? Generally no more than 1.5 times one month's rent (N.J.S.A. 46:8-21.2).

Does New Jersey have rent control? Not statewide, but a number of individual municipalities — commonly cited examples include Newark, Jersey City, and Elizabeth — have adopted their own local rent-control ordinances; confirm current status with the specific city.

Start a New Jersey tenant screening with Checkr

Checkr can help New Jersey landlords and property managers run FCRA-compliant background checks structured around the state's Fair Chance in Housing Act requirements. Start a tenant screening with Checkr to get started.

Run background checks on tenants

Are you a current tenant or applicant? Run self background checks here>

Disclaimer

The resources and information provided here are for educational and informational purposes only and do not constitute legal advice. Always consult your own counsel for up-to-date legal advice and guidance related to your practices, needs, and compliance with applicable laws.