NCJAR® members who work with rental properties should be aware of New Jersey’s new limits on rental application fees and the State’s guidance regarding how those fees may be charged and disclosed.
New Jersey enacted P.L. 2025, c.405 in January 2026, establishing a $50 cap on certain fees charged in connection with rental applications. The Rental Application Fee Cap took effect May 1, 2026 and applies to landlords and their agents. The law does not apply to dwelling units located in owner-occupied one- or two-family homes offered for rent.
The $50 Limit Covers More Than the "Application Fee"
One of the most important points for REALTORS® and rental property professionals is that the $50 cap is not limited to a fee specifically labeled an "application fee."
According to guidance from the New Jersey Office of the Attorney General and Division of Consumer Affairs, the cap also applies to "other similar" fees charged to apply to lease or sublease a residence.
This means housing providers cannot get around the $50 limit by separating costs into multiple fees with different names. For example, charging an application fee along with additional administrative or screening fees could violate the law if the total amount charged to the applicant in connection with the application exceeds $50.
Practices That Could Create Compliance Issues
The State's guidance also identifies several practices that may violate the Rental Application Fee Cap or the New Jersey Consumer Fraud Act.
Housing providers should be cautious about:
- Collecting application fees for properties that are not actually available for rent.
- Collecting a fee when the landlord knows the applicant will not qualify for the property.
- Unreasonably collecting an excessive number of applications and associated fees for a particular dwelling.
- Withholding or concealing the rental price unless a prospective tenant first pays an application fee.
- Failing to clearly disclose the amount of a required application fee when advertising rental housing.
The State emphasizes transparency throughout the rental application process. Application fees should be clearly communicated to prospective tenants, including when a rental property is advertised.
Penalties Can Be Significant
Compliance is important. According to the guidance, landlords and agents who violate the Rental Application Fee Cap may face penalties of up to $1,000 per violation. Violations may also result in penalties under other consumer protection laws, including the New Jersey Consumer Fraud Act.
What NCJAR® Members Should Do
REALTORS® involved with residential rentals should review their current application procedures with their brokers and make sure any fees charged in connection with an application comply with the $50 cap.
Members should also review rental advertisements and communications to make sure required application fees are clearly disclosed. Particular attention should be paid to situations where separate administrative, screening, processing, or similarly named fees are being charged as part of the same rental application.
The New Jersey Division of Consumer Affairs has stated that it intends to monitor compliance and take action against violations. It may also issue additional guidance as necessary.
NCJAR® encourages members involved in rental transactions to familiarize themselves with the new requirements and consult their broker or legal counsel regarding questions about compliance.
