Legal Question in Real Estate Law in New Jersey

Re: Tenant Security Laws

In New Jersey, the statutes require the landlord of a residential rental unit both to deposit security in an interest bearing account (with notice to the tenant where the deposit is being maintained) as well as permits the landlord to deduct 1% from the interest as an "anministrative fee". In most instances the tenant, under whose social security number the interest is earned and reported, will receive a Form 1099 advising of the amount of annual interest. The Form 1099 might not be net of the landlord's deduction, so this should be confirmed with the landlord, so only the net amount will be reported for income tax purposes.