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NEW JERSEY CAPS RESIDENTIAL RENTAL APPLICATION FEES AT $50
By March 31, 2026 Posted in Landlord/Tenant Law Share
New Jersey Assembly Bill No. 4899 is scheduled to take effect on May 1, 2026. Once effective, it will limit certain fees charged in connection with residential rental applications. Under the new law, a landlord or its agent may not require an application fee, or other similar fee to apply for a lease or sublease of residential rental property for dwelling purposes, in an amount exceeding $50.00. The law also provides for annual adjustments to that fee cap based on changes in the Consumer Price Index (“CPI”), with the updated amount to be published each year by the Director of the Division of Consumer Affairs (the “DCA”).
The legislation also establishes penalties for violations. A landlord or agent who violates the fee limitation may be liable for a penalty of up to $500.00 for a first offense, up to $750.00 for a second offense, and up to $1,000.00 for each subsequent offense. Under the law, the amount wrongfully charged will be taken from the collected penalty and returned to the applicant or prospective tenant.
There are, however, important limits to the law’s scope. The fee cap does not apply to an apartment located in a single-family or two-family dwelling offered for rent. The law also does not apply to a licensee of the New Jersey Real Estate Commission, unless the licensee is the landlord of the residential rental property. So, owners, landlords, and property managers should review whether their properties and leasing practices fall within the categories covered by the statute before making changes to their procedures.
Because the statute applies to an application fee or other similar fee, landlords should carefully review current fee structures that may be tied to apartment applications, lease takeovers, roommate swaps, or similar transfer- or occupancy-related processes. Any administrative fee that functions as, or could reasonably be characterized as, a fee required to apply for a lease or sublease should be evaluated in light of the new law’s language. How any particular fee will be treated will depend on the nature of the charge and how it is imposed.
The statute also directs the DCA to adopt rules and regulations necessary to implement the law, including a mechanism for applicants and prospective tenants to report violations. So, expect further guidance as we wait to see how this law will be applied in practice. Landlords should consider reviewing their leasing documents, fee schedules, and internal application procedures before the May 1, 2026, effective date.
If you believe this new law could affect you and have questions or concerns, Griffin Alexander, P.C., can help. Our attorneys are experienced in all aspects of Community Association and Landlord-Tenant law. We can help ensure that your property remains in compliance with any and all laws and amendments.
The information in this Client Alert is provided solely for information purposes. It should not be construed as legal advice on any specific matter and is not intended to create an attorney-client relationship. The information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular circumstances. Each legal matter is unique, and prior results do not guarantee a similar outcome.