State law applies here too. Where both cover a rental, the stricter city rule usually wins; each rule below says so.
New Jersey lawDepends on the building
NJ Security Deposit Law – cap, handling, interest and return
How big can the deposit be?
Max 1.5 months' rent.
They must return it within 30 days of move-out, with interest.
Depends on the number of units or whether the owner lives in the building.
Who it covers
Not owner-occupied buildings with 3 units or fewer.
Exemptions: Owner-occupied two- or three-family dwellings unless the tenant sends a written request; interest rules do not apply to seasonal rentals.
The law, word for word
“The maximum-security deposit to be collected by the landlord cannot be more than
one and one-half times one month’s rent ( N.J.S.A. 46:8-21.2 ). …”
N.J.S.A. 46:8-21.2 · nj.gov · Retrieved Oct 1, 2026
Quote checked word for word
No other rule found
Paterson's rent leveling chapter expressly excludes security deposits from 'rent' and sets no local deposit rule; deposits are governed by the NJ Security Deposit Law (N.J.S.A. 46:8-21.2) at the state level.
The law, word for word
“Security deposits, late fees and charges for accessories, such as air conditioners, boats, mobile homes, garages and automobiles not used in connection with the housing space, shall not be construed as "rent."”