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ALL NEW JERSEY LANDLORD’S MAY SOON BE PROHIBITED FROM REQUIRING ELECTRONIC RENTAL PAYMENTS
By December 7, 2023 Posted in Landlord/Tenant Law Share
Currently, New Jersey state law prohibits some landlords from requiring residential tenants to pay rent and other related charges through electronic funds transfer; landlords must provide receipts for cash payments. Under the current statute, a landlord is:
any person who rents or leases or offers to rent or lease, for a term of at least one month, dwelling units, except dwelling units in rental premises containing not more than two such units, or in owner-occupied premises of not more than three dwelling units, or in hotels, motels or other guest houses serving transient or seasonal guests.
[N.J.S.A. § 46:8-44(a).]
Essentially, this law, which only controls residential landlords, not commercial ones, states that landlords cannot require their tenants to pay electronically—for instance, by using apps like Venmo, PayPal, or Zelle. Additionally, landlords must provide tenants with receipts for any rent payments made in cash. However, landlords who rent or lease two or fewer apartments are exempt from this requirement.
There is now an amendment to this law proposed before the New Jersey State Senate that would expand this definition of “landlords” required to provide receipts for rent cash payments made by tenants. If the amendment passes, the definition of a “landlord” would include “any person who rents or leases or offers to rent or lease, for a term of at least one month, one or more dwelling units, except dwelling units, hotels, motels or other guest houses serving transient or seasonal tenants.”
In other words, there would no longer be an exemption based on the number of units the landlord rents. Even a landlord who rents one or two units or lives in one of the units of a three-unit building would have to provide receipts for cash rent payments and could not require tenants to pay electronically. However, the law would still only apply to residential landlords.
If you believe this new amendment 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.