With the recent freezing temperatures, our office has received many questions regarding owner and resident responsibilities when a pipe bursts and a resident is displaced. Below is a brief summary of an owner’s rights and obligations under New Jersey law. (Keep in mind that there may be facts that distinguish certain situations from others).
1. Is an Owner Required to Provide Temporary Housing?
We have not identified any statute, regulation, or ordinance that requires an owner to provide alternative housing when a resident is displaced due to a pipe that burst, or any other cold weather-related event due to freezing weather. Conditions caused by events beyond an owner’s control (often referred to as an “Act of God”) do not automatically impose additional liability on the owner, particularly where the owner did not cause the condition and acts reasonably to address it.
2. Rent Obligation During Repairs.
If the apartment is rendered uninhabitable, rent is abated (suspended) during the period the unit cannot legally be occupied. Rent should be returned to the resident for any days the unit is uninhabitable. However, this does not mean the lease automatically terminates. Once repairs are completed and the unit is habitable again, the resident’s obligation to pay rent resumes.
3. Resident’s Personal Property & Loss of Use.
Residents are responsible for their personal property.
Renter’s insurance typically covers:
- Damage to personal belongings
- Temporary housing (loss of use)
- Additional living expenses
Owners are not insurers of a resident’s personal property unless the damage is caused by the owner’s negligence.
4. Security Deposit – When Must It Be Returned?
Under N.J.S.A. 46:8-21.1:
- If a resident is displaced by fire, flood, condemnation, or evacuation and
- A public official posts the premises with a notice prohibiting occupancy,
The owner must return the security deposit (less permitted deductions and unpaid rent) within five (5) business days. If there is no official notice prohibiting occupancy, the standard rules apply. There is no obligation to return the deposit simply because temporary repairs are needed.
5. Practical Steps for Owners.
If a pipe bursts or there is an emergency causing the apartment to be uninhabitable:
- Act promptly to mitigate damage.
- Document the condition and repair efforts.
- Communicate clearly with the resident.
- Determine whether the municipality has issued a prohibition on occupancy.
- Confirm whether the resident has renter’s insurance.
If you have questions about a specific situation, especially where a resident seeks a rent abatement or demands return of the security deposit, please contact our office before taking action.
Stay safe and warm,
Tracey & Adrienne
This information is provided solely for information purposes. It should not be construed as legal advice on any specific matter and is not intended to create an attorney-client relationship. The information provided herein may not be applicable to all situations and should not be acted upon without specific legal advice based upon particular circumstances. Each legal matter is unique, and prior results do not guarantee a similar outcome.