Witholding deposit for not reporting issue

[Nik2019]

Just giving you the risks.

What you do is up to you.

Thanks

As you have been told NJ is a very tenant friendly state. You can sue or you can, likely illegally, withhold. Either one will get you into court where you can debate until the judge shuts you down.

Involving in a litigation with a tenant who is dwelling in one's unit on a lease is akin to cutting the branch on a tree on which one is sitting,common sense dictates to litigate once the tenant is out.why is it illegal to withhold?and apparently when once home is on fire (water in this case) first priority would be damage restoration instead of litigation.

 

[adjusterjack]

why is it illegal to withhold?

There is nothing illegal about applying the security deposit to damage as long as you follow the statute:

https://law.justia.com/codes/new-jersey/2013/title-46/section-46-8-21.1/

The problem is that, at the time of the damage, you took no action against the tenant and you renewed the lease without taking any action. Your reasons are irrelevant. You did it.

Nobody can guarantee the outcome of a lawsuit. All we are telling you is that the tenant could have defenses against the loss of his security deposit if he took you to court for it.

"Laches" has been mentioned. The first paragraph on Wikipedia explains it pretty well.

https://en.wikipedia.org/wiki/Laches_(equity)

"Waiver" is another legal doctrine that could be helpful to your tenant.

https://en.wikipedia.org/wiki/Waiver

 

[Nik2019]

Thanks this is very good information to make an educated decision.

 

[justalayman]

when You renewed the lease, did everything stay the same? No change in amount or rent? No rule changes?

A renewal of s lease is not an extension of an existing contract but a new contract. You made no claim against the security deposit paid for the expiring lease and signing the new lease but applied it to the new lease. Your right to make a claim against the deposit will be based on the time limit regarding security deposits and the date of the expiration of the first lease.

You won’t win due to a claim of no knowledge of the damages since you state you were aware of them when signing the new lease.


Basically you waived your claim of damages under the original lease and the condition of the unit upon signing the new lease is what you must use to determine damages at the expiration of the new lease. You rented them a damaged apartment so they don’t have to pay for damages they didn’t cause under the lease you would be suing under.

 

[LdiJ]

Thanks


Involving in a litigation with a tenant who is dwelling in one's unit on a lease is akin to cutting the branch on a tree on which one is sitting,common sense dictates to litigate once the tenant is out.why is it illegal to withhold?and apparently when once home is on fire (water in this case) first priority would be damage restoration instead of litigation.

You are missing a whole lot of steps there. You not immediately litigate. You inform the tenant that they are responsible for the damage and bill them. If they do not pay you do not renew the lease and then, if necessary, you litigate.

You did not inform them. You did not bill them. You renewed the lease. It sounds very much like you are just looking for an excuse to keep their deposit. If it looks that way to me, it could look that way to a judge as well.