The Voucher Applicant, the Deposit, and the Broken Boiler

Refuse, in writing, and explain why.

New Jersey's security deposit statute treats tenant deposits as the tenant's money held in trust. The core requirements:

• Deposited in a separate, interest-bearing account - not the brokerage's business checking, not the owner's operating account.
• The tenant is notified in writing within 30 days of receipt, giving the name and address of the bank and the amount of the deposit.
• Interest is paid to the tenant (or credited) at least annually at the rate set by the state, and the tenant is told the amount.
• On move-out, the deposit is returned within 30 days with an itemized statement of any deductions, and the tenant has a right to a pre-move-out inspection.

On top of the statute, the broker's own escrow rules apply to property-management money: segregation, no commingling, records that show whose money is whose.

Dale's move: decline the instruction in writing, cite the statutory basis, keep the deposits where they are (or move them to a compliant interest-bearing trust account and re-notice if the bank changes), and remind the owner that commingling exposes the owner to statutory penalties - including, in serious cases, forfeiture of the right to retain the deposit - and exposes Dale's license. "It can earn more" is not a defense; commingling is the violation, not the yield.

Refusing an applicant because the rent is paid with a housing voucher is unlawful in New Jersey. The state Law Against Discrimination protects source of lawful income used for rent, in addition to the federally protected classes (race, color, religion, sex, national origin, familial status, disability) and the state's additional protections such as marital status, domestic partnership or civil union status, affectional or sexual orientation, gender identity or expression, and military liability. "Those tenants are trouble" attached to a voucher holder is the textbook statement of a discriminatory refusal.

What is permitted: neutral, uniformly applied screening criteria - income-to-rent ratio calculated including the voucher subsidy, credit history, rental history, references, occupancy limits - applied to every applicant in the same order, with written criteria and records showing the order of applications.

What Dale must do:

• Decline to screen out the applicant; process the application under the neutral criteria.
• Put the owner's instruction in writing and confirm in writing that the brokerage will not follow it.
• Check the listing and advertising language - "no Section 8" is itself a violation.
• Watch for steering and for differing treatment of the unit offered.

If the owner insists, Dale's exposure is real: the broker is a party to the housing decision, and "the owner told me to" is not a defense to a discrimination complaint filed against the brokerage.

Rent increase. A 24% jump ($1,250 to $1,550) is not automatically illegal, but three checks come first:

1. The lease. Its renewal terms, notice clause, and any cap control.
2. Local ordinance. New Jersey has no statewide rent control, but Trenton and several other municipalities do, with caps and registration requirements. A blank check on the increase is a mistake.
3. Notice mechanics. A rent increase generally requires proper written notice aligned with the rental period and the lease, and the increase can't be applied retroactively.

The broker should confirm the ordinance, serve notice correctly, and document delivery.

Boiler refusal. "Heat is a winter issue" is the wrong frame - the implied warranty of habitability and local housing-code requirements do not wait for a complaint. Repeated failure of the heating system is a habitability defect that can support rent abatement, a repair-and-deduct or escrow action by the tenant, constructive eviction claims, and municipal penalties. As managing agent, Dale has an independent obligation to keep the property safe and code-compliant, and the owner's instruction does not transfer the risk.

Dale's action: issue a written repair authorization recommendation to the owner, get the boiler repaired or replaced, keep invoices, give the tenant written status updates, and put the owner on notice in writing that failure to repair creates liability for the owner and professional risk for the brokerage. If the owner refuses an emergency repair, the brokerage must decide whether to continue the management agreement - and should document that decision.