N.J. Stat. Ann. § 46:8-1 et seq. § 46:8-21.4
Small claims jurisdiction of actions on security deposits less than $5,000
Operative Text
6. Notwithstanding any law or rule to the contrary, the Division of Small Claims of the Superior Court, Law Division, Special Civil Part shall have jurisdiction of actions between an owner or lessee and tenant for the return of all or a part of a security deposit in which the amount in dispute, including any applicable penalties, does not exceed the sum of $5,000, exclusive of costs. L.2003,c.188,s.6.
Under N.J.S.A. 46:8-21.4, New Jersey's Division of Small Claims — part of the Superior Court, Law Division, Special Civil Part — is granted authority to hear disputes between property owners or lessees and tenants over the return of security deposits, as long as the total amount in controversy, including any applicable penalties, does not exceed $5,000 (not counting court costs). This provision overrides any conflicting laws or court rules that might otherwise limit small claims jurisdiction over such matters. It creates an accessible, lower-cost court pathway specifically for security deposit return disputes that fall within that dollar threshold.
Plain English — not legal advice.
Property owners and lessees subject to N.J.S.A. 46:8-21.4 should be aware that tenants may bring security deposit return claims against them in Small Claims court when the disputed amount — including penalties — is $5,000 or less. Compliant operators generally maintain clear records of security deposit amounts, deductions, and return timelines so they can respond effectively if a Small Claims action is filed. Understanding that this forum is available to tenants can inform how owners document and communicate deposit-related decisions.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
N.J.S.A. 46:8-21.4 gives tenants a relatively accessible court option — the Division of Small Claims of the Superior Court, Law Division, Special Civil Part — to pursue the return of a security deposit when the amount at issue, including penalties, does not exceed $5,000. Small Claims court is generally designed to be navigable without an attorney, making it a lower-barrier path for eligible disputes. Tenants may also wish to consult a local tenant-rights organization to understand what other remedies or procedural steps may be relevant to a security deposit dispute in New Jersey.
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 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.