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Renters' Rights · Security Deposit

Security Deposit Laws in New Mexico

The most a landlord can charge, how long they have to return it, and what it costs them to keep your money without cause in New Mexico.

Draft entry: figures pending statute verificationStatute §47-8-18Source codes.findlaw.com

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Security deposit at a glance · New Mexico
1 month
is the most a landlord may charge for a security deposit in New Mexico. It must be returned within 30 days.
Maximum deposit1 month (leases under 1 yr)
Return deadline30 days
Interest to tenantIf over 1 month's rent (1 yr+ lease)
Separate accountNot required
ItemizationRequired
PenaltyForfeit + fees; $250 bad faith
Statute§47-8-18

What your landlord can hold, and when it's due back

Enter your rent for the New Mexico maximum, plus the return-deadline clock.

Deposit calculator · New Mexico
Most a landlord can hold
1 month
Enter your monthly rent to see the dollar maximum.
Return clock: 30 days
The deadline runs from the date the rental agreement ends or you move out, whichever is later. Give your landlord a written forwarding address at move-out so the clock starts.

Estimate only, based on New Mexico's statutory cap. Your lease may set a lower deposit, and local ordinances can be stricter. Not legal advice.

The full rules, with the statute

Every requirement and where it comes from in the code.

Maximum deposit
For a lease shorter than one year, one month's rent. For a lease of one year or more, there is no dollar cap, but any deposit over one month's rent triggers an annual interest payment to you.

Exceptions: The cap depends on the length of your lease. Under NMSA 1978 47-8-18, for a rental agreement lasting less than one year the landlord cannot demand or receive a deposit greater than one month's rent. For a lease of one year or more there is no dollar cap, but if the deposit is larger than one month's rent the landlord must pay you interest each year (see below).

Return deadline
Within 30 days after the lease ends or you move out, whichever is later. If any amount is kept, the landlord must send an itemized written list of deductions with the balance.
Interest to tenant
ConditionalInterest is required only when the deposit is larger than one month's rent on a lease of one year or more. In that case the landlord must pay you interest each year, at a rate equal to the passbook interest that federal rules allowed for New Mexico savings and loan associations. On a deposit of one month's rent or less, no interest is owed.
Separate account
Not requiredNew Mexico law does not require the landlord to hold your deposit in a separate or escrow account. The landlord may hold it however they choose.
Itemization
Required whenever any part of the deposit is kept. If the landlord has actual cause to retain any portion, they must give you an itemized written list of the deductions, along with the balance of the deposit, within 30 days of the date the lease ends or you leave, whichever is later. The deposit cannot be kept for normal wear and tear.

Penalties & recent changes

What happens if the landlord keeps your deposit wrongfully.

If the landlord withholds wrongfully
A landlord who does not provide the itemized list within 30 days forfeits the right to keep any part of the deposit, forfeits the right to raise a counterclaim in any suit you bring to recover it, and is liable to you for court costs and reasonable attorney fees. A landlord who retains a deposit in bad faith owes an additional civil penalty of $250, payable to you.

What New Mexico renters get wrong

New Mexico ties the security deposit cap to how long your lease runs. Under NMSA 1978 47-8-18, if your lease is shorter than one year the landlord cannot demand or receive more than one month's rent as a deposit. If your lease is a year or longer, there is no fixed dollar cap, but any deposit larger than one month's rent obligates the landlord to pay you interest every year at the state passbook savings rate. After you move out, the landlord has 30 days to return the deposit, and if any of it is kept they must include an itemized written list of the deductions. A landlord who misses that deadline forfeits the right to keep any of the deposit and owes your court costs and attorney fees, with an extra $250 penalty for keeping it in bad faith.

Common questions

How much can a landlord charge for a security deposit in New Mexico?

It depends on your lease length. For a rental agreement shorter than one year, the deposit cannot be more than one month's rent (NMSA 1978 47-8-18). For a lease of one year or more there is no dollar limit, but if the deposit is larger than one month's rent the landlord has to pay you interest every year.

Does my New Mexico landlord have to pay interest on my deposit?

Only in one situation: when your lease is a year or longer and the deposit is larger than one month's rent. Then the landlord must pay you interest annually, at a rate equal to the passbook interest allowed for New Mexico savings and loan associations. If the deposit is one month's rent or less, no interest is owed.

How long does a New Mexico landlord have to return my deposit?

Thirty days from the date the lease ends or you move out, whichever is later. If the landlord keeps any part of it, they must send you an itemized written list of the deductions along with whatever balance is left. Nothing can be withheld for normal wear and tear.

What happens if my New Mexico landlord keeps my deposit unfairly?

If the landlord fails to give you the itemized list within 30 days, they lose the right to keep any of the deposit, cannot raise a counterclaim if you sue to get it back, and owe your court costs and reasonable attorney fees. If they held the deposit in bad faith, they also owe an extra $250 penalty payable to you.

Primary source
NMSA 1978 §47-8-18
New Mexico Statutes §47-8-18 (Deposits), Uniform Owner-Resident Relations Act · codes.findlaw.com
Draft: pending editorial review
Every figure here is corroborated by two or more independent sources: FindLaw's statute mirror of NMSA 1978 47-8-18 was fetched verbatim this session and confirms the cap, interest, deadline, and penalty language, and Justia's statute mirror plus multiple landlord-tenant summaries agree. However, the official New Mexico source (nmonesource.com, the New Mexico Compilation Commission's One Source of New Mexico Law) returned HTTP 403 / refused connection and could not be fetched verbatim this session, so the record stays draft until a human confirms the section text on the official site in a browser. Editorial standards →

Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.

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