Pass-Through Costs: How New Jersey Landlords Can Legally Raise Rent

Understanding rent increases and pass-through costs is crucial for renters in New Jersey, where rent control and rent stabilization rules can vary by municipality. If your landlord is trying to raise your rent to cover specific new costs, it’s important to know your rights and responsibilities under New Jersey law.

What Are Pass-Through Costs?

Pass-through costs are expenses that landlords can, in certain situations, “pass through” to tenants—meaning they can legally increase your rent to cover specific costs like property tax hikes, major building repairs, or new municipal fees. In New Jersey, whether and how this is allowed depends largely on local rent control ordinances and the state’s underlying landlord-tenant laws.

New Jersey’s Rent Control and Pass-Through Laws

New Jersey does not have statewide rent control. Instead, rent control is handled at the local level. Many cities and towns in New Jersey have adopted their own rent stabilization programs, often overseen by a local Rent Control Board or Rent Leveling Board. These boards set rules for when landlords can raise rent, including for pass-through costs. For statewide reference, see the New Jersey Department of Community Affairs Landlord-Tenant Information page.

Common Pass-Through Costs in New Jersey

• Increase in property taxes not caused by landlord error
• Major capital improvements (like new roofs or heating systems)
• Essential mandated upgrades from the city (code compliance, health, or safety)
• New municipal fees affecting the building

Landlords usually need board approval to raise rents for these costs, especially in towns with rent control. Each municipality has different rules, so check with your local rent board for the specific process.

When Can a Landlord Raise Rent for Pass-Through Costs?

Landlords must follow both state and local procedures to raise your rent for pass-through costs. Typical rules include:

• Providing written notice, usually at least 30 days before the rent increase (see local law for specifics)
• Submitting an application to the municipal rent control or rent leveling board
• Demonstrating valid documentation for the costs (such as contractor receipts or tax bills)
• Receiving approval from the local Rent Board before increasing your rent

If your building is exempt from local rent control (such as certain small or newer buildings), the state’s New Jersey Anti-Eviction Act and New Jersey Statutes Title 46:8-1 et seq. will still protect you from unconscionable or retaliatory rent increases.

Required Forms and Where to File

• Rent Increase Application (Municipal): Most local rent boards require landlords to file a formal Rent Increase Application before raising rent for pass-through costs. The specific form, name, and process vary by town. For example, in Jersey City, it’s the Jersey City Rent Increase Application.
  

  When to Use: If your landlord says your rent is going up due to new costs, ask for the notice and check that a Rent Increase Application was filed and approved. Contact your local rent board (like the NJ DCA list of municipal boards) for your town’s exact form.

• Notice to Tenant of Proposed Rent Increase: Landlords must provide advance written notice to tenants about any rent increase, even for pass-through costs. There isn’t a universal state form, but your municipality may have a template.
  

  When to Use: If you receive a rent increase, ensure it’s in writing and states the new amount, effective date, and reason. If unclear, request your landlord’s supporting documents and check with your local rent board.

• Tenant Complaint Form (DCA/RTFA-1): If you believe the rent increase violates local rules or state law, file a complaint with your town’s rent board or the New Jersey Department of Community Affairs.
  

  Example: If your landlord raises your rent without proper notice or board approval, fill out the Tenant Complaint Form (DCA/RTFA-1) and submit it to the DCA Bureau of Housing Inspection.

What to Do If You Disagree with a Pass-Through Cost Increase

If you believe your rent was raised unfairly or outside legal procedures:

• Ask your landlord for a copy of the board-approved rent increase and documentation
• Contact your municipal rent control board (find your board from the DCA municipal directory)
• File a formal complaint (see form above)
• Attend a rent board hearing if scheduled—you have the right to attend and present your side

Throughout the process, keep written records of all notices, board decisions, and communications with your landlord.

Relevant Tribunal and Legislation Links

Rent increase and pass-through cost disputes are usually handled by your local Rent Control or Rent Leveling Board. Statewide, the overseeing authority is the New Jersey Department of Community Affairs (DCA), Landlord-Tenant Information Service.

• New Jersey Truth-in-Renting Act (Landlord-Tenant Information Guide)
• New Jersey Statutes: Landlord and Tenant (Title 46:8-1 et seq.)

Frequently Asked Questions

1. Can my landlord raise my rent to cover property tax increases?
   In some New Jersey towns with rent control, landlords may apply to the local rent board for approval to pass property tax increases to tenants. They must apply officially and receive approval before doing so.
2. Do all New Jersey renters have rent increase protection?
   Protections vary. Buildings covered by local rent control ordinances give renters strongest protection. Statewide, rent increases cannot be unconscionable, retaliatory, or discriminatory.
3. How much notice does my landlord have to give for a rent increase?
   Landlords must provide written notice, usually 30 days in advance, but some cities require more. Always check your local ordinance or ask your local rent board.
4. What do I do if I think a rent increase isn’t legal?
   Contact your local rent board and file a complaint. You can also submit the DCA Tenant Complaint Form (DCA/RTFA-1) if your town does not have its own board.

Conclusion: Key Takeaways for New Jersey Renters

• Local rent control rules set the process for pass-through rent increases—always check with your city’s rent board.
• Landlords must provide you with written notice and, in many areas, board approval for rent increases tied to pass-through costs.
• If you think a rent increase is unfair or unlawful, file a complaint and keep documentation of all communications.

Need Help? Resources for Renters

• NJ Department of Community Affairs – Landlord-Tenant Information
• Tenant Complaint Form (DCA/RTFA-1)
• Find Your Local Rent Control Board
• Legal Services of New Jersey – Rent Control Overview

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1. New Jersey Truth-in-Renting Act (2024)
2. New Jersey Statutes Title 46:8-1 et seq.
3. NJ Department of Community Affairs – Landlord-Tenant Information
4. New Jersey DCA Tenant Complaint Form (DCA/RTFA-1)

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