NJ A3498

Residential tenants who believe a rent increase is unconscionable may request in writing within 10 days that the landlord provide detailed rationale for the increase, including specific financial data on expenses, profitability, and comparisons to similar properties within 10 miles.

If tenant and landlord cannot negotiate a rent amount before the new lease term begins, the tenant may bring a court action against the landlord, with the landlord bearing the burden of proof to demonstrate the increase is conscionable.

Courts must consider multiple factors when determining unconscionability, including Consumer Price Index changes, landlord expenses and profitability, tenant financial circumstances, comparable rents in the area, property condition, and whether the increase would "shock the conscience of a reasonable person."

If a court finds the rent increase unconscionable, the landlord must offer a 12-month lease at the previous rent plus CPI adjustment; landlords are prohibited from evicting tenants while such court actions are pending.

The bill appropriates $2 million to the Administrative Office of the Courts—$1 million for public awareness campaigns and $1 million for mandatory judge training on these procedures.