Property Management Bookkeeping in New Jersey

Money held for owners in New Jersey is not your money, and New Jersey sets its own rules — through state law and the New Jersey Division of Revenue and Enterprise Services-registered licensing regime — on how those funds are held, how often they are reconciled, and what records must exist. We keep the trust ledger reconciled to the bank with owner-level detail behind every balance; whether that satisfies New Jersey's specific requirement is a determination for you and your attorney, not us.

Security deposits in New Jersey are a liability, not income. New Jersey caps a residential deposit at 1.5 months' rent, and requires you to return or account for it within 30 days of move-out. That deadline is why the ledger has to be per-tenant rather than one pooled balance — a pooled figure cannot answer "what is owed to this tenant, and by when," which is the only question that matters when a deposit is disputed.

Registering to do business in New Jersey runs through the New Jersey Division of Revenue and Enterprise Services, with tax accounts through the New Jersey Division of Taxation and employer accounts through the New Jersey Department of Labor and Workforce Development. New Jersey treats these as wholly independent, so being in good standing with one says nothing about the others — and the sales tax account is the one that accrues a real balance while you are not looking.

The New Jersey statewide base rate is 6.625%. Local rates stack on top and are generally sourced to the delivery address, so the effective rate varies within the state. Getting sourcing right is what keeps the liability account matching what you actually collected.