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New Limits on Residential Rental Application Fees & Penalties
By January 30, 2026 Posted in Landlord/Tenant Law Share
Governor Murphy recently signed Assembly Bill No. 4899 into law, introducing new limits on residential rental application fees and establishes penalties for landlords who fail to comply. This law takes effect on May 1, 2026, and it is essential that all landlords in the state review their application fee practices to ensure compliance.
Under the new law, landlords may not charge more than $50 for rental application fees or any similar fees associated with leasing or subleasing a residential property. The cap will be adjusted annually ensuring the limit keeps pace with inflation.
The law also establishes graduated penalties for landlords who exceed the $50 limit. A first offense can result in fines up to $500, a second offense up to $750, and each subsequent offense up to $1,000. Additionally, any fees charged over the legal limit will be taken from the penalty and remitted back to the applicant.
One or two family dwellings offered for rent and realtors or brokers who assess fees and are not the owner of the property are not subject to these restrictions.
For landlords, the implications of this new law are significant. Exceeding the fee limit could result in substantial financial penalties and may also harm your reputation with prospective tenants. Landlords in New Jersey should review their application fee practices and adjust fees to ensure they do not exceed $50 before the law takes effect on May 1, 2026.
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.