Being a landlord and real estate investor is a large role that goes beyond property management to encompass legal responsibilities and regulatory compliance. In the State of New Jersey, one crucial aspect is the mandatory Landlord Registration Statement.
In this comprehensive guide, we will go into the intricacies of this requirement, its significance, and the consequences of non-compliance.
Understanding the Mandate
At the basics of the landlord obligations in New Jersey is the legal framework of N.J.S.A. 46:8-27 and N.J.S.A. 55:13A-1. These statutes mandate that all landlords of residential rental homes within the state must register their rental units.
The registration process varies based on the number of residential units owned by the landlord.
For landlords with three or more residential units in a single building, registration is processed through the Department of Community Affairs (DCA). For landlords with two or fewer residential units, the registration can be processed through the municipal clerk.
This distinction ensures that the registration process is tailored to the scale of the landlord's property holdings, promoting efficiency and accessibility.
The Registration Statement
The cornerstone of compliance is the Landlord Registration Statement, alternatively known as the Landlord Identity Statement in some municipalities. Unlike more intricate certifications like the Certificate of Habitability, the registration statement is a straightforward document.
Landlords are required to provide specific information, typically including the names of the property owners and designated emergency contacts.
For a rental unit to be registered with the City, and receive a Certificate of Habitability, you must have no outstanding charges. This includes all municipal taxes, water, and sewer charges, as well as any other municipal assessments that are due.
Unlike Certificates of Occupancy, which necessitate inspections and renewal with each change in occupancy, a single registration statement is generally effective until the property undergoes a change in ownership.
Evictions and Certification
The implications of the Landlord Registration Statement extend beyond mere paperwork. In eviction proceedings, landlords or their legal representatives must certify that the property in question has been duly registered.
This certification is a critical component of the eviction process, and judges presiding over Tenancy Court may request the landlord to produce a copy of the registration statement.
Under New Jersey law, no Judgment for possession, the ultimate goal of landlords in eviction Court, can be entered against any residential tenant unless the landlord has successfully registered the property.
While the law also stipulates that a copy of the registration statement should be served upon the tenant, a lack of this documentation has not been reported to result in the denial of a Judgment for Possession.
Consequences of Non-Compliance: Eviction Delays and Fines
The failure to obtain a registration statement does not automatically result in the dismissal of a tenancy action. However, it does trigger a significant consequence: the stay of the Judgment for Possession for up to ninety days.
During this period, the landlord is expected to rectify the non-compliance by producing the necessary registration statement.
Beyond the context of evictions, landlords who neglect the obligation of obtaining registration statements may also face exposure to municipally imposed fines. Municipalities, in their efforts to ensure compliance, have the authority to enforce penalties for failure to adhere to these fundamental regulations.
Exemptions and Special Cases: Two Exceptions to the Rule
For landlords of two-family owner-occupied houses questioning the applicability of New Jersey's Landlord Registration Statement Act, there are only two exceptions to consider:
Seasonal Tenancies: Properties with seasonal tenancies lasting six months or less are exempt from the registration requirement.
Lead Paint Certification: Properties where the interior has been certified as free of lead paint fall under the exception. Dwellings constructed after 1978 are automatically considered free of lead paint.
These exceptions emphasize the nuanced nature of the regulation, tailoring its application to specific scenarios while maintaining a robust framework for widespread compliance.
Ensuring Compliance and Seeking Information
To navigate the complex landscape of Landlord Registration Statements in New Jersey, landlords are encouraged to stay informed and engage with the relevant authorities.
The New Jersey Department of Community Affairs serves as a valuable resource for obtaining accurate and up-to-date information on the intricacies of the registration process, exceptions, and any evolving regulations.
Hire a Property Management Company
If you already have your hands full with your existing landlord requirements, you may want to consult a property management company.
Hiring property management professionals can significantly decrease your day-to-day responsibilities of being a landlord. A professional property manager can handle tenant screening, maintenance, marketing and much more.
Further, they can make sure you and your property are legally compliant, to ensure smooth sailing of your rental business.
Bottom Line
In conclusion, the Landlord Registration Statement is a fundamental tool for maintaining transparency, accountability, and fair practices in the landlord-tenant relationship.
By understanding and adhering to these regulations, landlords can build a foundation of responsible landlording, ensuring the well-being of their tenants and safeguarding their investments in the dynamic real estate landscape of New Jersey.
Consult the experts at Lone Eagle Property Management. We can assist with property registration, as we are experts in the New Jersey rental market. Get in touch with us today!