Security Deposit Laws in New Mexico
How long does a landlord have to return a security deposit in New Mexico?
Under N.M. Stat. § 47-8-18, a landlord in New Mexico has 30 days after you move out to either return your full security deposit or provide an itemized statement of deductions along with any remaining balance.
Important New Mexico-specific details
Cap: 1 month's rent for leases under 1 year. For annual leases, no statutory cap but deposit must be 'reasonable' and interest applies to anything over 1 month. Normal wear and tear cannot be deducted.
What happens if the landlord misses the deadline in New Mexico?
Missing the deadline has real consequences for landlords in New Mexico. Under the statute, the penalty is: If landlord fails to provide itemized statement within 30 days, landlord: (1) forfeits the right to withhold any portion of the deposit; (2) forfeits the right to any counterclaim; (3) is liable for court costs and reasonable attorney's fees; and (4) forfeits the right to sue separately for property damages. Bad-faith retention adds a $250 civil penalty payable to the tenant.
In practice, this means if your landlord doesn't return the deposit (or a proper itemized statement) within 30 days, you likely have a strong case in small claims court.
What can the landlord legally deduct from your deposit in New Mexico?
New Mexico law generally allows landlords to deduct for:
- Unpaid rent
- Damage to the unit beyond normal wear and tear — holes in walls, broken fixtures, stains, pet damage
- Cleaning costs, if the unit is left noticeably dirtier than at move-in
- Breach-of-lease costs, such as early termination fees where legally permitted
Landlords cannot deduct for normal wear and tear — faded paint, worn carpet from regular use, minor scuffs, or small nail holes from hanging pictures.
Calculator: check your deposit situation
Enter your move-out date and deposit amount below to see exactly when your landlord's deadline is — and whether they've already missed it.
Security Deposit Return Calculator
Find out when your landlord must return your deposit and what they're legally allowed to deduct.
What to do if your landlord won't return your deposit in New Mexico
- Send a demand letter by certified mail. Cite N.M. Stat. § 47-8-18 and the amount owed. Keep a copy and the delivery receipt.
- Give the landlord a reasonable response window — typically 7 to 14 days after the demand letter.
- File in small claims court. In most states you can sue for up to $5,000–$10,000 without a lawyer. Filing fees are usually $30–$75 and often recoverable as costs.
- Bring evidence. Lease, move-in and move-out photos, the demand letter, proof of delivery, and any communications with the landlord.
For a complete walkthrough, see our guide: What to Do If Your Landlord Won't Return Your Security Deposit.
New Mexico Security Deposit FAQ
- How long does a landlord have to return a security deposit in New Mexico?
- In New Mexico, landlords must return the security deposit within 30 days of the tenant moving out, per N.M. Stat. § 47-8-18. They must either return the full deposit or provide an itemized statement of any deductions.
- What is the maximum security deposit a landlord can charge in New Mexico?
- In New Mexico, the maximum security deposit is 1 month of rent under N.M. Stat. § 47-8-18.
- What happens if my landlord doesn't return my deposit on time in New Mexico?
- In New Mexico, the penalty for wrongfully withholding a security deposit is: If landlord fails to provide itemized statement within 30 days, landlord: (1) forfeits the right to withhold any portion of the deposit; (2) forfeits the right to any counterclaim; (3) is liable for court costs and reasonable attorney's fees; and (4) forfeits the right to sue separately for property damages. Bad-faith retention adds a $250 civil penalty payable to the tenant. You can sue in small claims court to recover the deposit plus the statutory penalty.
- Does my landlord in New Mexico have to pay interest on my security deposit?
- Yes. New Mexico requires landlords to pay interest on security deposits. For leases of 1 year or longer: if deposit exceeds 1 month's rent, landlord must pay annual interest equal to the passbook interest rate permitted to NM savings and loan associations by the federal home loan bank board.
- Does my landlord have to itemize deductions from my deposit in New Mexico?
- Yes. New Mexico law requires landlords to provide an itemized statement of any deductions made from your security deposit.