New Mexico Security Deposit Laws: Tenant Rights & Protections

If you rent a home or apartment in New Mexico, it's important to understand your rights around security deposits. Security deposits are sums of money landlords collect at the start of a lease to cover potential damages or unpaid rent. Knowing state laws can help you avoid common disputes and ensure you get your money back when you move out.

Understanding Security Deposit Basics in New Mexico

New Mexico state law regulates how much a landlord can charge for a security deposit, how it must be handled, and the process for returning it. The main legislation governing this is the New Mexico Uniform Owner-Resident Relations Act.^[1]

How Much Can a Landlord Charge?

• For leases less than one year: Maximum is one month’s rent.
• For leases of one year or longer: There is no limit, but any amount above one month's rent must accrue interest, which must be paid to the renter annually.

This means most renters will pay no more than a month’s rent for their deposit unless they sign a year-long lease or longer.

Where Is the Deposit Held?

Landlords must keep security deposits in a trust account separate from their other funds. Laws are in place to reduce the risk of misuse.

Requirements for Returning Security Deposits

Returning a security deposit at the end of a tenancy involves specific rules in New Mexico:

• Landlords have 30 days after a tenant moves out to return the deposit, along with an itemized list of any deductions.
• Deductions can only be made for unpaid rent, repairs beyond normal wear and tear, or breaking the lease.
• If deductions are made, a detailed written explanation and receipts (when available) should be provided.

If you didn’t receive your deposit or a letter explaining deductions within 30 days, you may be able to take action to recover your money under New Mexico law.

What Counts as Normal Wear and Tear?

Normal wear and tear means the natural deterioration of a unit from everyday use, such as worn carpets or faded paint. Damage caused by abuse, neglect, or accidental harm is not considered normal wear and tear and may be deducted.

How to Dispute a Security Deposit Deduction or Non-Return

If your landlord does not return your deposit on time, or you disagree with the deductions, you have options for seeking help:

• Contact the landlord in writing, requesting your deposit back and citing the Uniform Owner-Resident Relations Act.
• Gather evidence such as photos, lease documents, and communication records.
• If not resolved, you may file a claim in New Mexico Magistrate or Metropolitan Court (the state's civil court for small claims).

Relevant Official Forms for Renters

• Petition by Resident for Return of Deposit (Form 4-905) — Used by tenants to formally request the return of a security deposit through the court if a landlord does not comply.
  Access this form under "Civil Forms" at New Mexico Courts.
  Example: If your landlord keeps your deposit without cause, fill out this form and file it with your local Magistrate or Metropolitan Court.
• Uniform Owner-Resident Relations Act: Summary of Rights and Obligations — This informational form is sometimes provided by landlords. Find it on the New Mexico Regulation & Licensing Department website.

Where to Get Help: Tribunal and Government Agencies

Residential tenancy disputes and security deposit complaints in New Mexico are handled by the Magistrate Courts and Metropolitan Courts. You can learn more and find your local court on the official New Mexico Courts Landlord-Tenant Law page.

Frequently Asked Questions

1. How long does my landlord have to return my security deposit in New Mexico?
   Landlords must return your security deposit, along with an itemized list of any deductions, within 30 days of your move-out date.
2. Can my landlord keep my deposit for general cleaning or small repairs?
   Landlords are not allowed to deduct for normal wear and tear. They may deduct only for damages beyond normal wear and tear or for unpaid rent.
3. What do I do if my landlord doesn’t return my deposit or respond?
   You can first send a written demand for your deposit. If there’s no response, file a claim in Magistrate or Metropolitan Court using the Petition by Resident for Return of Deposit form.
4. Is there a limit to the security deposit in New Mexico?
   For leases under one year, the limit is one month’s rent. Longer leases can have higher deposits, but extra amounts must accrue interest for the renter.
5. Where can I find official forms to file a dispute or claim?
   Official court forms like the Petition by Resident for Return of Deposit are available on the New Mexico Courts website.

Key Takeaways for New Mexico Renters

• Security deposits for most rentals are capped at one month’s rent.
• Landlords have 30 days to return the deposit or send an itemized list of deductions.
• Tenants can use official court forms and file in state courts to recover deposits if needed.

Understanding your rights helps you avoid unnecessary disputes and ensures you’re prepared before and after you move out.

Need Help? Resources for Renters in New Mexico

• New Mexico Courts: Landlord-Tenant Law Self-Help
• New Mexico Regulation & Licensing Department: Owner-Resident Relations
• Law Help New Mexico – Renter’s Rights
• For additional legal assistance, contact your local legal aid office in New Mexico

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1. New Mexico Uniform Owner-Resident Relations Act (NMSA 1978, § 47-8-1 et seq.)
2. New Mexico Courts: Landlord-Tenant Law
3. New Mexico Regulation & Licensing Department: Owner-Resident Relations Act

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