New Mexico security deposit law

Security Deposit Laws in New Mexico: What Your Landlord Can and Cannot Keep

Your landlord has 30 days under New Mexico law to return your security deposit, or you may be owed more than what they withheld. If they keep more than they're legally allowed, you can dispute it.

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New Mexico security deposit return timeline

Deadline to return

30 days

Statute

NMSA 1978 § 47-8-18(C) (deadline); § 47-8-18(D), (E) (penalties)

If cause exists to retain any portion of the deposit, the owner must provide an itemized written list of deductions and the balance of the deposit within 30 days of the date of TERMINATION OF THE RENTAL AGREEMENT or RESIDENT DEPARTURE, WHICHEVER IS LATER — do not compute the deadline from move-out alone if the agreement terminated afterward. The owner is deemed to have complied by mailing the statement and any payment to the resident's last known address; no tenant demand or forwarding-address delivery is required. Deposit caps: for agreements under one year, no more than one month's rent; annual agreements with a deposit above one month's rent owe annual passbook-rate interest (§ 47-8-18(A)).

What can a landlord legally deduct in New Mexico?

Allowed

  • ✓Payment of rent
  • ✓Damages suffered by reason of the resident's noncompliance with the rental agreement or § 47-8-22 NMSA 1978
  • ✓Nonpayment of utilities, repair work, or other legitimate damages

Not allowed

  • ✗Normal wear and tear — "No deposit shall be retained to cover normal wear and tear."

What if your landlord keeps your deposit wrongfully in New Mexico?

An owner who fails to provide the written statement and balance within 30 days FORFEITS the right to withhold ANY portion of the deposit, forfeits the right to counterclaim in the tenant's recovery action, is liable for court costs and reasonable attorneys' fees, and forfeits the right to bring an independent damages action (§ 47-8-18(D)). An owner who in bad faith retains a deposit is additionally liable for a $250 civil penalty payable to the resident (§ 47-8-18(E)). No general doubling multiplier.

How TenantNex helps

  1. 1. Tell us your move-out date, deposit amount, and landlord's address — two minutes.
  2. 2. We generate a demand letter citing NMSA 1978 § 47-8-18(C) (deadline); § 47-8-18(D), (E) (penalties) and your exact deadline.
  3. 3. We mail it to your landlord via USPS Certified Mail with return receipt.
  4. 4. You track delivery on your case page, with day-7 and day-14 follow-up.

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New Mexico tenant rights resources

Every fact on this page is verified against New Mexico's official statutory text as of 2026-09-07. TenantNex prepares legal correspondence as a document preparation service, not as your attorney. For complex disputes, consult a licensed attorney in New Mexico.

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What TenantNex is — and isn't

TenantNex is a document preparation and delivery service, not a law firm. We prepare and send correspondence using publicly available state statutes. We do not provide legal advice, legal representation, or guarantee any outcome. For complex legal matters, consult a licensed attorney in your state.