Yes, that is the recommended form.
If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education purposes only. It neither creates an attorney-client relationship nor provides legal guidance or advice. The answer is based on the limited information provided and the answer might be different had additional information been provided. You should consult an attorney.
Dear Can I live out security deposit?
I am an attorney licensed in New York. I do not practice law in New Jersey.
Your reference is to the Sample letter for a tenant to provide notice as contained in the New Jersey Department of Community Affairs Division of Codes and Standards Landlord-Tenant Information Service SECURITY DEPOSIT BULLETIN at:
This is the text:
"***You have failed to notify me in writing, and within 30 days of my payment, of the name and
address of the banking institution in which you have placed my security deposit. On (date)__ , I paid a security deposit to you in the amount of $ , by check #. Therefore, I am hereby applying the remedy as prescribed by the Security Deposit Law, by informing you to apply my security deposit plus the tenant’s portion of the accrued interest to my rent for the month of . According to the law, I am without further obligation to pay you a security deposit as long as I live in the rental unit.***"
Read and review the bulletin. If you feel certain that your situation is the same as described in the Notice of Deposit of Security Funds, then the New Jersey statute offers a remedy to the landlord's failure to comply.
The answer provided to you is in the nature of general information. The general proposition being that you should try to avoid a bad outcome if you can.