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New Mexico security deposit law
Short answer: A New Mexico landlord has 30 days after the lease ends or the tenant moves out (whichever is later) to send an itemized list of deductions with any balance. Deposits are capped at one month's rent for leases under a year; for yearly leases, a deposit over one month's rent must earn interest.
| Deadline to return the deposit | 30 days after the rental agreement ends or the tenant moves out, whichever is later. |
|---|---|
| Limit on how much a landlord can charge | One month's rent for rental agreements shorter than one year. Leases of a year can have a larger deposit, but then the landlord must pay the tenant interest every year. |
| Itemized list of deductions | Yes. An itemized written list of deductions and the balance, mailed to the tenant's last known address. |
| Interest on the deposit | Only on yearly leases where the deposit is more than one month's rent: the landlord pays annual interest at the passbook savings rate. |
| Penalty if the landlord breaks the rules | A landlord who misses the 30-day list loses the right to keep any of the deposit, can't counterclaim or sue separately for damage, and owes the tenant's court costs and attorney's fees. Bad-faith retention adds a $250 civil penalty. |
| What the tenant has to do | Keep the landlord updated on your address. |
| The law | New Mexico Statutes Section 47-8-18 (text checked via FindLaw's copy of the code; a compilation current through the 2025 session shows no later change to this section) |
Official law: New Mexico Statutes Section 47-8-18 (text checked via FindLaw's copy of the code; a compilation current through the 2025 session shows no later change to this section). Checked against the statute on 2026-11-04.
Good to know
- Normal wear and tear can't be deducted.
- Last month's prepaid rent isn't treated as part of the damage deposit.
Tips for landlords
- Do a written move-in inspection and have the tenant sign it. Take dated photos of every room, including inside appliances and closets.
- Collect the tenant's forwarding address in writing at move-out.
- Put the itemized list and the refund in the mail well before the deadline, and keep proof of mailing.
- Normal wear and tear (faded paint, light carpet wear, small nail holes) usually can't be charged. Damage beyond that can.
Tips for tenants
- Take your own dated photos and video on move-in day and move-out day.
- Give your landlord your forwarding address in writing, and keep a copy.
- If the deadline passes, send a written demand letter that cites the law above before going to small claims court.
Common questions
How long does a landlord have to return a security deposit in New Mexico?
30 days after the rental agreement ends or the tenant moves out, whichever is later.
Is there a limit on security deposits in New Mexico?
One month's rent for rental agreements shorter than one year. Leases of a year can have a larger deposit, but then the landlord must pay the tenant interest every year.
Does a landlord in New Mexico have to itemize deductions?
Yes. An itemized written list of deductions and the balance, mailed to the tenant's last known address.