New Mexico security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
Baselane accounts cannot hold security deposits in states requiring escrow or state-based accounts, but can be used to collect, track, and securely transfer deposits to compliant external accounts.
{{ state }} security deposit account
State law doesn’t mandate holding funds in a security deposit escrow account in New Mexico. However, it is highly recommended to keep these funds separate from your personal finances. Maintaining a dedicated account for a tenant security deposit in New Mexico helps ensure that the money is available for a prompt return when the lease ends.
{{ state }} security deposit
limits
For a lease agreement of less than one year, the maximum security deposit in New Mexico is one month's rent. While the average security deposit in the state remains one month’s rent to remain competitive, if the lease exceed one year mark, you can charge a higher deposit amount.
{{ state }} security deposit interest
If you collect a deposit greater than one month's rent, you need to pay interest on the security deposit in New Mexico. State law security deposit rules set the interest equal to the passbook interest permitted to savings and loan associations in this state by the Federal Home Loan Bank Board. Because the security deposit interest rate is tied to this specific passbook rate, verify the current percentage each year.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Keep every deposit organized and accounted for with secure transfers to [State] security deposit accounts.
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
1 month's rent for lease duration less than 1 year
Yes, if the security deposit is more than one month’s rent
No escrow account mandated; a security deposit saving account is recommended for fund separation
Unpaid rent, repairs, lease violations, and cleaning costs
30 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in New Mexico?
The New Mexico security deposit limit depends on your lease length. If the lease duration is under one year, you can’t charge more than 1 month’s rent. If the lease is longer, you can charge more, but you will have to pay interest on the total amount. This total includes the first and last month's rent plus the deposit.
Is interest required on tenant security deposits in New Mexico?
Yes, if the deposit is more than one month’s rent, you need to pay New Mexico security deposit interest to the tenant annually. It is helpful to track this in a landlord-tenant security deposit bank account; New Mexico law doesn't mandate, but allows you to keep your interest calculations accurate.
How should I issue a security deposit receipt to tenants in New Mexico?
While not strictly required by state law, you should always provide a written receipt for a security deposit. Include the date, amount, and the property address to prevent future disputes.
How many days to return a security deposit in New Mexico?
You get 30 days to return the tenant's security deposit in New Mexico, along with an itemized list of deductions, only if you keep a certain amount of the deposit to cover damages, unpaid rent, or fees.
What can a landlord deduct from a security deposit in New Mexico?
You can use security deposit funds to cover unpaid rent, utilities, and damages beyond normal wear and tear. As per landlord rights security deposit claims, if you don’t give tenants an itemized list within 30 days, you lose the right to claim deductions. These rules apply to any house rental, apartment, or condo.
Can a security deposit be used for unpaid rent in New Mexico?
Yes, you can use the deposit to cover unpaid rent. Having a separate security deposit bank account in New Mexico makes it easy to make these deductions without commingling it with other funds.
Can landlords keep a security deposit for breaking a lease in New Mexico?
If a tenant is breaking lease terms, the landlord security deposit New Mexico rules allows you to deduct funds to cover lost rent due to early vacancy of the property.
