Overview
New Hampshire's security deposit laws are governed by RSA 540-A. The state sets a straightforward deposit limit, requires landlords to hold deposits in a designated bank account, and provides a 30-day return timeline. These rules apply to all residential rental agreements in the state.
This guide covers everything landlords and tenants need to know about security deposits in New Hampshire.
Deposit Limits
New Hampshire law sets the following security deposit limits:
- Maximum deposit: 1 month's rent or $100, whichever is greater
- No additional pet deposits are specifically addressed in the statute, but any deposit collected cannot exceed the statutory maximum
The security deposit must be held in a bank account in New Hampshire. The landlord must disclose the name and address of the bank and the account number to the tenant. The deposit cannot be commingled with the landlord's personal funds.
cite: N.H. Rev. Stat. § 540-A:6
Allowable Deductions
Landlords may only deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Damage beyond normal wear and tear: Repairs for tenant-caused damage that exceeds ordinary wear
- Unpaid utility charges: If the tenant is responsible for utilities under the lease and has outstanding balances
- Other lease obligations: Costs arising from specific breaches of the rental agreement
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs or marks on walls
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint from sunlight exposure
Damage beyond normal wear and tear includes:
- Large holes in walls
- Stained, burned, or torn carpet
- Broken windows, doors, or fixtures
- Damage from unauthorized pets or negligence
Return Timeline
Landlords must return the security deposit within 30 days of the termination of the tenancy or the tenant vacating the unit, whichever is later. The return must include:
- The remaining deposit amount (if any deductions were made)
- An itemized written statement listing each deduction and the amount
If the landlord fails to return the deposit or provide the required itemized statement within 30 days, the landlord forfeits the right to withhold any portion of the deposit and must return the full amount.
cite: N.H. Rev. Stat. § 540-A:7
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit
- File a claim in Small Claims Court (up to $10,000 in New Hampshire)
- File a complaint with the New Hampshire Attorney General's Consumer Protection Bureau
If the landlord willfully fails to comply with the security deposit statute, the court may award the tenant damages, including the full deposit amount and reasonable attorney's fees. Bad faith retention of the deposit may result in additional penalties.