New Mexico security deposit law: what tenants and landlords need to know

New Mexico's §47-8-18 ties the deposit cap to lease length — a structure found almost nowhere else — and attaches an interest obligation to landlords who take advantage of the higher tier.

How much can a landlord charge?

Leases under one year: one month's rent, maximum. Leases of a year or more: a "reasonable" deposit — but if it exceeds one month's rent, the landlord owes the tenant annual interest on it at the prevailing passbook rate. The interest rule is the price of the bigger deposit, and it's the provision most commonly ignored.

The 30-day clock

Within 30 days of termination, the landlord must return the balance with an itemized written list of deductions — unpaid rent and damage beyond ordinary wear and tear. Provide a forwarding address in writing to keep the mail moving.

The penalty

A landlord who fails to provide the itemized statement forfeits the right to withhold any portion and the right to countersue for damage — and in a recovery action, the tenant can collect court costs and reasonable attorney's fees. Fee-shifting makes even small New Mexico deposits worth pursuing in magistrate court.

Why New Mexico deposit disputes are documentation disputes

The statute polices the amount and the paperwork; the substance — condition then versus now — is the parties' to prove, with fee-shifting punishing whoever shows up with the weaker record.

SealMove is the stronger record, by construction. Every photo and video is cryptographically sealed the instant it's captured, independently timestamped, and locked with Face ID into a tamper-evident archive. At move-out, the walkthrough lines up room-by-room against the sealed baseline — and either party can send the other a report to review and acknowledge, no app required.

This page is general legal information, not legal advice. Statutes change; verify current law or consult a New Mexico attorney for your situation. Last reviewed: August 2026.

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QuestionNew Mexico's answer
Maximum deposit1 month (leases < 1 yr); "reasonable" for annual leases
InterestOwed annually on annual-lease deposits over 1 month
Return deadline30 days, with itemized list
Wear and tearNot deductible
PenaltyForfeiture + costs and attorney's fees
StatuteN.M. Stat. §47-8-18

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