New Mexico Security Deposit Statute Guide
New Mexico's core residential security deposit rule is NMSA 1978, Section 47-8-18. It covers the deposit cap and interest structure, deductions, the 30-day written statement rule, forfeiture, and the civil penalty for improper withholding.
Cap and interest structure
For rental agreements shorter than one year, the landlord generally may not demand or receive a deposit above one month's rent. For annual rental agreements, a larger deposit may be taken, but the landlord must pay annual interest on the portion above one month's rent.
Return and itemization rule
Upon termination, the landlord may apply the deposit to unpaid rent and damages caused by noncompliance with the rental agreement or resident duties, but not to normal wear and tear.
If any money is withheld, the landlord must provide an itemized written list of deductions and the balance of the deposit, if any, within 30 days after termination of the rental agreement or resident departure, whichever is later.
Mailing rule
New Mexico treats the landlord as complying by mailing the statement and any required payment to the resident's last known address. If the mailing is returned as undeliverable and the resident provided an alternative address, the landlord has an additional notice obligation.
That is why renters should give a current mailing or forwarding address in writing and keep proof.
Forfeiture and penalty
If the landlord misses the written statement and payment rule, the landlord can forfeit the right to withhold any portion of the deposit. The statute also includes forfeiture of certain counterclaim or separate-claim rights for those charges, plus court costs and reasonable attorney fees.
A landlord who retains a deposit, or any portion of it, in violation of the section is liable for a civil penalty equal to twice the amount improperly withheld.
Official sources
- New Mexico Legislature - HB0111 amending Section 47-8-18
- Housing New Mexico / New Mexico Legal Aid - Renter's Guide
- New Mexico Courts Law Library - Landlord-Tenant Resource Guide
Source reviewed: April 2026.
Related New Mexico pages
The system is built around NMSA 1978, Section 47-8-18, including itemization, forfeiture, and the 2x improperly-withheld penalty.
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