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I am a paralegal and our office deals with this issue all the time.
In NJ, it doesn't matter if the landlord knew it was illegal or not, or if they have registered the unit or not. All that matters is that the apartment that was rented to you violates the local zoning ordinance, and that you have PROOF from zoning that the apartment is illegal (like a copy of the violation notice).
I'm going to keep this simple, and not explain every single nuance or possibility under the sun.
1) There is no such thing as rent on an illegal apartment.
2) With that in mind, unless you paid at least one rental period worth of rent, you aren't a tenant.
3) You will NOT get any rent already paid returned to you.
What these three things together mean is that you have to have paid one rental period of rent in order to be considered a tenant. You can't move in, discover that it is an illegal apartment and stop your first months rent check. But ... after you discover that it is an illegal apartment, you do not owe any more rent.
4) The only way the landlord can evict you is through a possession action based upon the fact that it is an illegal apartment, and the only way to cure this violation is by terminating your tenancy.
5) Terminating your tenancy is a legal process, and you cannot be evicted without going through the court system. The more they screw up and the longer they take is to your benefit because you get to live rent free during this entire time.
6) The landlord owes you 6 times the rent in relocation benefits. It doesn't matter if you only paid one month of rent ... you still are entitled to 6 times the rent.
7) They must provide this to you BEFORE you can be evicted. If you got months and months of free rent, they may try to negotiate the amount with you.
8) Depending on their circumstances (i.e. if they are filing for bankruptcy, going into foreclosure, etc) this may or may not be a good idea.
9) There is one single circumstance under which the owner may be able to get out of paying you, which I am not going to blab here.
10) Your town may have a program where they pay you the relocation money and then they put a lien on the property.
11) You deposit is a separate matter, but the return of your deposit can be worked into your settlement agreement.
12) If it isn't and your deposit is not returned to you as provided by state statute, you can sue in small claims AND get double your money plus attorney fees.
13) If you damaged the unit (illegal or not), you won't get that portion of your security back BUT unpaid rent cannot be deducted from your security since there is NO SUCH THING as rent on an illegal apartment.
14) Your lease is null and void.
Do not take legal advice from the building inspector, people online, etc. Get a lawyer who specializes in Landlord/Tenant matters to handle this for you. Do not get someone who does not specialize in L/T as they will not be aware of recent case law that affects your situation.
Print out and read carefully what I have told you so that you understand the process and have a basic grasp of your rights. There is a wealth of misinformation out there on this situation. Our office sucessfully handles this exact situation at least 3 times a week, but we are not in Middlesex County.
Hi JC
What if the situation was not someone doing something illegal but a favor. A young couple who are friends with my husbands friends were being evicted. My 19 year old moved out the basement space we began using it for a hang out. The couple was being evicted and we said okay they could stay for 6 months. Fast forward they have been there 5 years they were paying $850 the whole time. March 2020 they stopped paying. I asked them why they said the governor said they didn’t have to. Come September when the hold was off I asked them to leave. The guy said no and now I can’t get him to leave. Can you please tell me the exception you didn’t want to blab I could really use the help. The girl has left him. He is the one who was never employed only working under the table. She was the one paying the $850. This favor is costing me big time. In addition I did not know it was illegal to let someone stay in your basement they don’t have a lease. Please help I receive $231 a month in unemployment every since my 8 year old started virtual because I was only part time.
That is true, but I'm sure that JCParalegal has been silently lurking in the background for the past 12 years, just waiting to re-engage in this discussion.
What if the situation was not someone doing something illegal but a favor. A young couple who are friends with my husbands friends were being evicted. My 19 year old moved out the basement space we began using it for a hang out. The couple was being evicted and we said okay they could stay for 6 months. Fast forward they have been there 5 years they were paying $850 the whole time. March 2020 they stopped paying. I asked them why they said the governor said they didn’t have to. Come September when the hold was off I asked them to leave. The guy said no and now I can’t get him to leave. Can you please tell me the exception you didn’t want to blab I could really use the help. The girl has left him. He is the one who was never employed only working under the table. She was the one paying the $850. This favor is costing me big time. In addition I did not know it was illegal to let someone stay in your basement they don’t have a lease. Please help I receive $231 a month in unemployment every since my 8 year old started virtual because I was only part time.
I'm sorry to say this, but you're stuck. If you try to evict, you will be admitting that they are renting an illegal apartment. You would be required to pay them 6 months rent to relocate. You read that right. You need to pay this, even if they owe you rent money (the law says you're still entitled to back rent for an illegal unit, but you cannot deduct the relocation money from the amount owed by the tenant).
This wasn't a favor. They helped pay your mortgage, and your home was not registered to use as a rental, and you might not be in a multi-unit zoned area.
Unfortunately, there's no good solution for you. Don't rent out your basement next time. It is such an expensive mistake, I don't know why people keep making it.
EDIT: You asked about a secret answer from JCParalegal. There isn't one. Not above the board anyways. Paying a settlement out of court is likely the cheapest option for you.
1) There is no such thing as rent on an illegal apartment.
This is categorically false. This advice has severely hurt me. I have to call into question your credentials. Miah v Ahmed settled this in the NJ Supreme Court.
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