New Mexico allows landlords to deduct only supported charges. The landlord should be able to explain the deduction in writing and tie it to the lease, the condition of the rental, or an actual unpaid amount.
Common allowed categories
New Mexico sources support deductions for:
- unpaid rent
- late fees
- utilities
- repairs
- cleaning
- other legitimate damages or charges
No deposit may be retained for normal wear and tear.
The written itemization matters
If the landlord keeps any portion of the deposit, the landlord must provide an itemized written list of deductions and the balance of the deposit, if any, within the New Mexico deadline.
If that does not happen, New Mexico's forfeiture rule can become the main issue.
Official sources
- New Mexico Legislature - HB0111 amending Section 47-8-18
- Housing New Mexico / New Mexico Legal Aid - Renter's Guide
Source reviewed: April 2026.
DepositBackUSA - New Mexico Recovery System
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