In New Mexico, landlords can charge up to one month's rent or unlimited if the landlord pays interest.
Security deposit rules in {{ state }}
Limit: In New Mexico, the maximum tenant security deposit depends on the length of the lease. For leases shorter than one year, landlords may collect up to one month’s rent as a tenant deposit. For leases of one year or longer, there is no limit on the deposit amount. The total must be clearly stated in the lease agreement. It is strongly recommended that landlords use a dedicated security deposit bank account in New Mexico to maintain transparency and compliance with best practices for managing tenant funds.
Return Deadline: The landlord must return the tenant security deposit, along with an itemized written list of deductions, within 30 days after the tenant vacates the property and provides a forwarding address. If the landlord fails to return the tenant deposit or issue the itemized statement within this period, they may forfeit any right to withhold the funds and may be liable for additional penalties.
Acceptable Deductions: The tenant security deposit may be used to cover unpaid rent, late fees, damages beyond normal wear and tear, cleaning costs, and expenses required to restore the rental property to its move-in condition. All deductions must be supported by documentation, such as receipts or repair estimates, and provided to the tenant with the itemized statement.
Where to Deposit: New Mexico law does not require landlords to place tenant deposits in a separate or interest-bearing account. However, it is considered best practice to use a security deposit escrow account in New Mexico or a landlord tenant security deposit bank account in New Mexico to prevent commingling with personal or business funds. While there is no mandated security deposit interest rate, maintaining a separate, federally insured account helps ensure compliance with New Mexico rental regulations and promotes transparency between landlords and tenants.
