New Mexico Security Deposit Law: Deadlines & Penalties
In New Mexico, a landlord who keeps any part of a security deposit must send the tenant an itemized written list of deductions, along with the balance, within 30 days after the rental agreement ends or the tenant moves out, whichever is later. No part of the deposit may be kept to cover normal wear and tear. Deductions are limited to damage the tenant caused and other amounts owed under the agreement.
For rental agreements shorter than one year, the deposit can't exceed one month's rent. If a landlord collects more than one month's rent on an annual agreement, they must pay the tenant interest on the deposit. Giving your forwarding address in writing helps make sure the refund and itemized list reach you on time.
A landlord who misses the 30-day deadline loses the right to withhold any part of the deposit, can't counterclaim for damage in a suit over the deposit or bring a separate suit for damage to the rental, and is liable for the tenant's court costs and reasonable legal fees. A landlord who keeps a deposit in bad faith also owes a $250 civil penalty to the tenant.
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New Mexico: common questions
How long does a New Mexico landlord have to return a deposit?
30 days after the rental agreement ends or you move out, whichever is later. Within that time the landlord must return the deposit or send an itemized written list of deductions with the remaining balance.
What happens if my New Mexico landlord misses the deadline?
The landlord forfeits the right to withhold any part of the deposit, can't bring a counterclaim or a separate lawsuit for damage to the rental, and must pay your court costs and reasonable legal fees if you sue to recover the deposit.
Is there a bad-faith penalty in New Mexico?
Yes. A landlord who keeps a deposit in bad faith, in violation of the statute, is liable for a $250 civil penalty payable to the tenant, in addition to returning the money that was wrongfully withheld.
Where can I file a deposit claim in New Mexico?
Magistrate courts, and the Metropolitan Court in Bernalillo County, hear civil cases, including landlord-tenant disputes, of up to $10,000. These courts are set up for people representing themselves, so bring your lease, photos, this letter and proof of mailing.
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