New Hampshire Security Deposit vs. Damage Deposit Explained

Understanding security and damage deposit rules is essential for renters in New Hampshire. These deposits can affect your move-in costs, your rights during the tenancy, and your ability to recover funds when moving out. Knowing the differences—and your legal protections—helps prevent confusion and disputes with your landlord.

Security Deposit vs. Damage Deposit: What's the Difference?

In New Hampshire, the terms "security deposit" and "damage deposit" often refer to the same thing. State law uses the term security deposit to describe any money held by the landlord to cover damages beyond normal wear and tear, unpaid rent, or other lease breaches.

• Security Deposit: Money you pay upfront to protect the landlord against damage, unpaid rent, or lease violations.
• There is no separate 'damage deposit' law in New Hampshire—the security deposit covers damage and related issues under one set of rules.^[1]

This means that whether your lease refers to a "security deposit" or a "damage deposit," the rules and protections provided by New Hampshire law are the same.

Key Rules for New Hampshire Security Deposits

• Maximum Amount: Landlords may not charge more than one month's rent or $100, whichever is greater.^[1]
• Holding the Deposit: Deposits must be kept in a separate bank account by the landlord.
• Written Statement Requirement: If the landlord requires a security deposit, they must provide a written receipt and, upon request, disclose the name and address of the account-holding bank.^[1]
• Return Deadline: The deposit must be returned within 30 days after the tenancy ends, or within 20 days if a tenant gives the landlord proper forwarding address information.
• Permitted Deductions: Landlords can deduct unpaid rent, damages beyond normal wear and tear, and certain other agreed charges.

If the landlord makes deductions, they must provide an itemized, written statement listing each deduction and the reasons for it.

Official Forms and How to Use Them

• Security Deposit Return Statement:
  • When to Use: If moving out, your landlord must send an itemized statement with the deposit return. There is no specific NH state-mandated form, but a written list is required by law.
  • Example: After your tenancy ends, you receive a letter listing deductions for carpet cleaning. If you don't receive this, you can request it in writing.
  • Reference: New Hampshire RSA 540-A:7 – Security Deposits
• Small Claims Petition (NHJB-2201-DP):
  • When to Use: If your deposit isn’t returned, you can file for recovery at your local circuit court via the Small Claims process.
  • Example: Your landlord withheld your deposit for damages you dispute. File the Small Claims Petition to request a court hearing.
  • NHJB-2201-DP Small Claims Petition Form

What Happens if Your Rights Are Violated?

The main agency overseeing landlord-tenant matters is the New Hampshire Circuit Court – Housing Division. If your landlord fails to follow the rules, such as not returning your deposit on time or making improper deductions, you can take action:

• Write to your landlord with a request for repayment and a forwarding address
• If not resolved, file a small claims case using the NHJB-2201-DP Petition
• Bring copies of your lease, move-in inspection list, photos, and communication as evidence

The court may award you up to twice the amount wrongfully withheld, plus legal costs, if the landlord acts in bad faith.^[1]

FAQ: New Hampshire Security Deposit Rights

1. Can my landlord call it a "damage deposit" instead of a "security deposit"?
   In New Hampshire, "damage deposit" and "security deposit" are treated the same under the law. The same rules and protections apply.
2. What happens if my deposit isn’t returned in time?
   If your landlord does not return your deposit within the legal timeframe, you can send a written request. If still unresolved, file a small claims case—you may be eligible for up to double the withheld amount.
3. What deductions can my landlord take from my deposit?
   Landlords can only deduct for unpaid rent, damage beyond normal wear and tear, and agreed fees stated in your lease. All deductions must be itemized in writing.
4. How do I dispute an improper deduction?
   Ask your landlord for a written statement explaining deductions. If you disagree, file a small claims case with the Circuit Court, presenting evidence.
5. Do I have to pay interest on my deposit?
   Yes, if your landlord holds your security deposit for more than one year, you are entitled to annual interest, which should be paid to you every year or at the end of the tenancy.

Need Help? Resources for Renters

• NH Department of Justice: Landlord-Tenant Rights
• New Hampshire Circuit Court – Housing Division
• New Hampshire Legal Assistance – Tenant Info
• NH RSA 540-A: Landlord and Tenant Statute

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1. See RSA 540-A:6 Security Deposits (NH State Statute)
2. NHJB-2201-DP Small Claims Petition Form (Official)
3. New Hampshire Department of Justice: Landlord/Tenant Law

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