N.J. Stat. Ann. § 2A:18-51 et seq. § 2A:18-61.61
Deduction of certain utility costs from rental payment
Operative Text
2. Whenever a tenants' organization agrees to accept billing for a utility service, the tenants comprising the membership of the organization accepting and paying such billing shall be permitted to deduct from each of their respective rental payments to the landlord of the premises an amount corresponding to the tenant's contribution towards the currently due utility payment and the arrearage, if any, owed by the landlord, provided that any contribution by a tenant to the arrearage shall not exceed 15 percent of the tenant's rental payment which would have been payable to the landlord, but for the contribution. L.2000,c.113,s.2.
Under N.J.S.A. 2A:18-51 et seq. § 2A:18-61.61, when a tenants' organization takes on responsibility for a utility bill that the landlord would otherwise owe, the individual tenants who are members of that organization may reduce their rent payments by the amount of their share of the current utility bill plus any past-due balance the landlord owes. However, the portion of any single tenant's rent reduction that goes toward paying down that arrearage is capped at 15 percent of what their rent payment would otherwise have been. This provision creates a structured mechanism for tenants to collectively address utility service continuity without losing the full protection of their rental obligations.
Plain English — not legal advice.
Property owners and managers should be aware that N.J.S.A. 2A:18-51 et seq. § 2A:18-61.61 permits tenants, acting through a recognized tenants' organization, to offset their rent payments when that organization has agreed to take over billing for a utility service the landlord owes. Compliant operators generally maintain current utility accounts to avoid creating the arrearage conditions that trigger this provision, since unpaid utility balances can directly reduce the rent income they receive. Keeping clear records of utility billing responsibilities and any communications with tenants' organizations is a practice consistent with operating under this statute.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
N.J.S.A. 2A:18-51 et seq. § 2A:18-61.61 gives tenants who belong to an organization that has agreed to accept a utility billing the right to deduct their proportionate share of that bill—including a portion of any landlord arrearage—directly from their rent. The arrearage portion of any individual deduction is limited to no more than 15 percent of what the tenant's rent would otherwise have been, so tenants generally track their contributions carefully to stay within that cap. Tenants who believe this right is being denied or disputed may wish to consult a tenant-rights organization or seek guidance from a housing attorney familiar with New Jersey landlord-tenant law.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 6, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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