Overview
New Mexico's security deposit laws are governed by the Uniform Owner-Resident Relations Act (N.M. Stat. § 47-8-1 et seq.). The state distinguishes deposit limits based on the length of the lease, provides a 30-day return window, and gives tenants legal recourse when deposits are improperly withheld.
This guide covers everything landlords and tenants need to know about security deposits in New Mexico.
Deposit Limits
New Mexico law sets security deposit limits based on the lease term:
- Leases under 1 year: Maximum of 1 month's rent
- Leases of 1 year or longer: No statutory limit on the deposit amount
There is no separate pet deposit provision in the statute. Any pet deposit collected is included within the applicable deposit limit for leases under one year.
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
- Cleaning: Costs to restore the unit to the condition at move-in, beyond normal wear
- Lease violations: Other amounts owed under 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 rental agreement and the tenant vacating the unit. The tenant must provide the landlord with a forwarding address for the return. 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 tenant does not provide a forwarding address, the landlord must hold the deposit for the tenant to claim. If the landlord fails to return the deposit or provide the required itemized statement within 30 days, the landlord may be liable for the full deposit amount plus additional damages.
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 Metropolitan Court (up to $10,000 in New Mexico)
- File a complaint with the New Mexico Attorney General's Office Consumer Protection Division
If the landlord wrongfully withholds the deposit, the court may award the tenant the amount of the deposit wrongfully withheld plus damages. In cases where the landlord acted in bad faith, the court may also award reasonable attorney's fees and court costs.