Rental investors
Owning a few rentals in New Jersey: the paperwork
Small landlords get caught by the same four things: an LLC deed done wrong, a missed registration, the lead paint rule and books that can't support Schedule E. Here's each one.
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Moving a property into your LLC
- The deed: you sign a new deed to the LLC, acknowledged before a notary so it can be recorded.
- Transfer fee: New Jersey exempts deeds with consideration under $100, claimed on Form RTF-1 recorded with the deed. (RTF-1) But the State says there's no exemption between two entities, even with the same owners. (NJ Treasury) Have your attorney or title company confirm the fee for your transfer.
- Evictions: once the property is in an LLC, the court requires a New Jersey attorney to file a landlord-tenant case; you can no longer file it yourself. (NJ Courts FAQ)
- Your mortgage: federal law stops lenders from calling a loan due for some transfers, like into certain living trusts, but a transfer to an LLC isn't on that list. (12 U.S.C. 1701j-3) Ask your lender before you record.
Registration
One-unit rentals and non-owner-occupied two-units register with the town clerk; buildings with three or more units register with the State's Bureau of Housing Inspection. Until you register, you can't get a judgment for possession. (NJ DCA)
Lead paint
Rentals built before 1978 need a lead inspection every 3 years or at tenant turnover, whichever is sooner, unless certified lead-free. Penalties run up to $1,000 a week if a violation isn't fixed. (NJ DCA)
Books that support Schedule E
Rental income and expenses go on Schedule E, and the building (not the land) is depreciated over 27.5 years. (IRS Pub 527) Keep each property's income and costs separate from the start.
Where we help
A notary for the LLC deed and affidavits, notices delivered with proof, filings at the Special Civil Part, and monthly books by property. Landlord plan · Notices and filings · Bookkeeping for landlords
Printable kit
Small Landlord Compliance Tracker (New Jersey)
An Excel tracker for registration, lead paint inspection due dates, insurance renewals and lease end dates across your rentals.
General information, checked November 2026. Not legal advice. MCC Solutions is not a law firm.
Questions
Do I pay the realty transfer fee to deed my rental to my LLC?
Deeds for under $100 of consideration can be exempt with Form RTF-1, but the State says there's no exemption between entities. Have your attorney or title company confirm for your transfer.
Will my bank call my mortgage if I deed the house to my LLC?
It can. Federal protections cover transfers like certain living trusts, not LLCs. Ask your lender first.
Where do I register my rental in New Jersey?
One unit, or a two-unit you don't live in: your town clerk. Three or more units: the State's Bureau of Housing Inspection.
How often is a lead inspection required?
For rentals built before 1978, every 3 years or at tenant turnover, whichever comes first, unless the unit is certified lead-free.
Tallyfinch
Books you keep on your own computer
Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries.
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