NJ Rent Increase Laws

One of the drawbacks of renting a home is that your landlord may increase the rent when renewing your lease. Here is a closer look at the rent increase laws in NJ. 

How Much Can a Landlord Raise Rent in New Jersey

New Jersey does not have any statewide rent control or stabilization laws; however, individual municipalities may establish their own laws. Therefore, landlords are permitted to raise the rent as much as they like unless they are subject to rent controls by the local municipal government.

Many cities in New Jersey base their rent control limits on the Consumer Price Index. This is an official measure of the change in costs of goods over time. So, landlords can increase rent to keep up with the general cost of inflation, but not anymore. But this rule is only used by certain municipalities and varies throughout the state.

When Can a Landlord Increase Rent in NJ?

The landlord is not permitted to increase rent at any point during an active lease term. So if you have a 12-month lease, the landlord is not permitted to increase the rent during those 12 months. But the landlord can raise the rent once the lease term expires, which the tenant has the option to accept or deny.

Is There a Rent Increase Limit in NJ?

No, there is no statewide rent increase limit, but there are local municipal laws that control rent in certain areas of the state. The rent increase limits in these municipalities are anywhere from 2-6% per year. Others set the limit based on the consumer price index. So, in areas with no rent regulation, landlords can increase the rent as much as they want (within reason).

What are Your Rights When Your Rent is Increased? 

Yes, tenants do have rights when their rent is increased. The landlord is required to follow specific protocols if they wish to increase the rent. First, they must wait for the present lease to expire and give you fair notice that the rent is increasing. Plus, they must offer you the option of a new lease at a higher price.

If they are increasing the price, it must be within the rent control laws set by the municipality (if there are any). They also cannot increase the rent so much that it could be deemed unconscionable.

What are Unconscionable Rent Increases?

An unconscionable rent increase is so large that it could be deemed exceedingly harsh or unreasonable. The state law does not state exactly how much is unconscionable. But it means that the landlord has a general duty to only increase the rent a fair amount to keep up with their own expenses.

An example would be if the rent suddenly doubled in price between lease terms. It’s unlikely that the property values or cost of living have gone up so much within such a short period. If you believe the rent increase is unconscionable, you can take your landlord to court, where it will be up to a judge whether or not the increase is unreasonable.

How Much Notice Is Needed for Raising Rent?

If the landlord is planning on raising rent, they must give you advanced notice and a chance to renew if you so decide. The amount of notice they must provide you depends on the type of lease. If you are on a month-to-month lease, they must notify you at least one month before the lease ends. If you are in a fixed-term lease, they must give you 60 to 90 days’ notice.

How Often Can Rent Be Increased?

Rent can only be increased once per lease term. So, if you have a 2-year lease, the landlord cannot raise the rent after the first year. But, if you only have a month-to-month contract, they can raise the rent at any time, as long as they give you one month’s notice. So, any time your lease is set to expire, you can expect the possibility of a rent increase.

NJ Cities & Rent Control Limits