New Mexico Security Deposit Limits & Return Deadlines Explained

Security deposits are a common part of renting an apartment or home in New Mexico. Understanding how much a landlord can request, how your deposit must be handled, and when it needs to be returned helps prevent surprises at move-out. This guide uses plain language to walk New Mexico renters through all the essentials.

How Much Can a Landlord Charge for a Security Deposit in New Mexico?

New Mexico state law places limits on the amount of security deposit a landlord can charge, depending on your lease:

• Leases under one year: Landlords may charge no more than one month’s rent as a security deposit.
• Leases of one year or more: Landlords can collect any amount, with no statutory cap, but deposits over one month’s rent must earn interest for the tenant.

Any earning of interest typically applies to the amount that exceeds one month’s rent. The landlord must pay this interest to the tenant each year.^[1]

When and How Should a Security Deposit Be Returned?

Under New Mexico law, when your tenancy ends, your landlord must return your security deposit or provide an itemized list of any deductions within 30 days after you move out and return the keys.

• Returned in Full: If there are no damages or unpaid rent/fees, you should receive your entire deposit.
• Deductions: If there are deductions (for repairs, cleaning, or unpaid rent), your landlord must provide a written, itemized list outlining each deduction and the amount withheld.
• Delivery Method: The landlord is required to mail the deposit and any statement to your last known address.

If the landlord does not send your security deposit or itemized statement within 30 days, you may be entitled to damages in court.^[1] Keeping records and forwarding your address is important to protect your rights.

Common Reasons for Security Deposit Deductions

Landlords in New Mexico can only deduct money from your security deposit for specific purposes:

• Unpaid rent
• Repairing damages beyond normal wear and tear
• Cleaning needed to return the unit to its original condition (above routine cleaning)

"Normal wear and tear" refers to minor damage or gradual deterioration from regular use, like faded paint or small nail holes. Landlords cannot withhold deposits for these minor issues.

Tip for Renters

Filing a Complaint or a Security Deposit Lawsuit

If your landlord does not return your deposit or you disagree with deductions, you can take legal action. Residential tenancy disputes in New Mexico are handled through the New Mexico Magistrate Court System, also known as "Small Claims Court."

Required Forms for Renters

• Petition by Tenant for Return of Deposit (No standardized statewide form; most courts have a "Civil Complaint" form.)
  When and how to use: If your deposit is not returned within 30 days, fill out a Civil Complaint form for your local New Mexico Magistrate Court. Clearly state your claim for return of the deposit and, if applicable, damages.
  Example: You moved out three weeks ago, left a forwarding address, and still have not received your deposit. You can fill out this complaint and begin a case in Magistrate Court.

The court will assign a date for your hearing. Bring all related documentation—lease, correspondence, move-in photos, receipts—to support your claim.

Relevant Law: New Mexico Uniform Owner-Resident Relations Act

Security deposit rules are covered by the New Mexico Uniform Owner-Resident Relations Act (NMSA 1978, Section 47-8-18). This state legislation defines limits, interest rules, return procedures, and more.^[1]

FAQ: Security Deposits for New Mexico Renters

1. How long does a landlord have to return a security deposit in New Mexico?
   Landlords must return your deposit or provide an itemized list of deductions within 30 days after tenancy ends and keys are returned.
2. What happens if my landlord withholds my deposit unfairly?
   If you believe a deduction is unfair, you can file a claim in New Mexico Magistrate Court for the deposit and possible damages.
3. Can a landlord keep part of the deposit for normal cleaning?
   No, a landlord cannot withhold deposit funds for standard cleaning or wear and tear. Deductions must be for extraordinary cleaning or actual damages.
4. Is interest required on security deposits in New Mexico?
   Only if your security deposit is more than one month’s rent and the lease term is one year or longer; then, interest must be paid on the excess.
5. How can I prove the condition of my rental when I move out?
   Take comprehensive photos or videos when moving in and out, and request a written inspection from your landlord if possible.

Key Takeaways for Renters

• Most New Mexico leases limit deposits to one month’s rent unless your lease is a year or longer.
• Landlords must return your deposit or explain any deductions within 30 days after move-out.
• If you don’t receive your deposit, you have the right to file a claim in Magistrate Court.

Need Help? Resources for Renters

• New Mexico Magistrate Courts — The official tribunal handling landlord-tenant and small claims disputes
• New Mexico Uniform Owner-Resident Relations Act — Complete legislation for residential tenancies
• Law Help New Mexico — Free legal help for renters on housing issues
• New Mexico Legal Aid — Legal support for tenants statewide

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1. New Mexico Uniform Owner-Resident Relations Act (NMSA 1978, Section 47-8-18)

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