New Mexico Rules on Security and Damage Deposits for Renters

If you’re renting a home in New Mexico, understanding the difference between a security deposit and a damage deposit is essential for protecting your rights and finances. Both types of deposits are common, but New Mexico law has clear rules about how much a landlord can ask for, how the deposit must be handled, and how you can get it back after moving out. This guide breaks it all down in plain language, with links to official legal resources and practical steps for renters.

What’s the Difference Between Security and Damage Deposits?

In New Mexico, most rental agreements require a deposit at the start of your tenancy. Here’s what each means:

• Security Deposit: Money held by the landlord to cover unpaid rent, cleaning, and potential damages.
• Damage Deposit: Sometimes separately listed, but in New Mexico law, both mean funds held by the landlord to cover tenant responsibilities. The law generally treats them the same way.

New Mexico refers to these as "deposits" and covers both under state law. There’s no formal difference in how they’re handled for most renters.

How Much Can a Landlord Charge?

The amount your landlord can require depends on your rental agreement term:

• For leases shorter than 1 year: Landlords can’t charge more than one month’s rent as a deposit.
• For leases of 1 year or longer: There’s no set limit, but if the landlord collects more than one month, they must pay you yearly interest on the extra amount.

Always request and keep a written receipt for any deposit paid.

When Can a Landlord Keep All or Part of Your Deposit?

There are strict rules about when landlords can keep deposit money. Deductions are only allowed for:

• Unpaid rent or utilities
• Repairing damage beyond normal wear and tear
• Cleaning to return the unit to the condition it was received (except normal use)

Landlords must provide an itemized written list of deductions, with details and costs.

How and When Do You Get Your Deposit Back?

After your lease ends and you move out, your landlord has up to 30 days to:

• Return your deposit in full (if there are no deductions), or
• Send you an itemized list of deductions, plus any remaining deposit balance.

Be sure to give the landlord your new mailing address. If they fail to respond within 30 days, you may be entitled to double the amount of the deposit.

What Official Forms Are Involved?

• Move-In/Move-Out Inspection Checklist: Although not an official state-required form, it’s strongly recommended. Use it to document any damages at the start and end of your tenancy. Example: Your landlord provides a checklist to note any marks on walls or broken fixtures, and both parties sign it. Many local housing agencies offer sample checklists, such as this Move-In/Move-Out Checklist (sample PDF). Always check with your local authority for accepted versions.
• Deposit Return Request Letter: If your landlord does not return your deposit or provide an itemized list within 30 days, you may send a formal letter requesting your deposit, citing New Mexico law. You can find sample letters and instructions from the New Mexico Legislature resources (see Section 47-8-18).

Official form numbers are not assigned to these documents by the state, but sample templates can be found through New Mexico Regulation and Licensing Department.

Who Handles Tenant-Landlord Disputes in New Mexico?

Disagreements over deposits are handled in New Mexico’s Magistrate and Metropolitan Courts, depending on your location. Renters can apply to the court if they believe their deposit was wrongly withheld.

Relevant Legislation

All rules are governed by the New Mexico Uniform Owner-Resident Relations Act (NMSA 1978, Section 47-8-18). This law gives detailed deposit protections for renters.

1. Can a landlord charge both a security and a separate damage deposit in New Mexico?
   New Mexico law treats all deposits for the fulfillment of a rental agreement the same way. This means landlords cannot collect multiple separate deposits for the same purposes. The total maximum applies.
2. How do I request my deposit if my landlord doesn’t respond?
   You should send a written deposit demand letter referencing Section 47-8-18 of the Uniform Owner-Resident Relations Act. If there’s no reply within 30 days, you can file in Magistrate or Metropolitan Court.
3. What is considered ‘normal wear and tear’ versus ‘damage’?
   Normal wear means minor deterioration from expected daily use. Damage includes holes in walls, broken fixtures, or major stains, beyond what’s expected from living in the unit.
4. What happens if my landlord keeps my entire deposit without explanation?
   If your landlord doesn’t send an itemized list or return your deposit within 30 days, you may take legal action and could be awarded up to twice the deposit amount.
5. Where do I file a complaint or case if I have a dispute?
   Most disputes are filed in your local New Mexico Magistrate or Metropolitan Court. Check your jurisdiction here.

Need Help? Resources for Renters in New Mexico

• New Mexico Regulation and Licensing Department
  Real Estate Division Renters Resources
• New Mexico Courts
  For legal forms and dispute resolution process, visit the Landlord-Tenant Portal
• Legal Aid New Mexico
  Free Legal Help for Renters
• Uniform Owner-Resident Relations Act Text
  Full Statute Language

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1. Uniform Owner-Resident Relations Act (NMSA 1978, Section 47-8-18) – New Mexico Statutes – Deposits
2. New Mexico Courts Landlord-Tenant Portal – Magistrate and Metropolitan Courts
3. New Mexico Regulation and Licensing Department – Official Forms and Applications

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