New Mexico Security Deposit Law: A 2026 Landlord's Guide
How much can you charge in New Mexico?
1 month's rent. Cap applies to leases under one year; larger deposits on 1-year+ leases trigger interest obligations.
Returning the deposit: the 30 days deadline
After the tenancy ends, New Mexico gives you 30 days to return the deposit. Itemized statement required. Blowing the deadline is the single most common way landlords lose deposit disputes — courts read these statutes strictly, and in many states a late or missing itemization forfeits your right to keep anything.
What you can deduct
- Unpaid rent and other amounts the lease authorizes
- Damage beyond normal wear and tear — holes in walls, broken fixtures, pet damage
- Never normal wear and tear — faded paint, carpet worn by ordinary use, minor scuffs
The dispute is almost never about the rule — it's about the evidence. Date-stamped move-in and move-out photos plus an itemized statement with receipts is what wins in small-claims court.
Interest and holding requirements
Interest required on deposits over 1 month for annual leases. Confirm the mechanics in N.M. Stat. § 47-8-18 — interest and account rules are where compliant landlords most often slip.
Track every deposit — and settle it correctly when the tenant leaves
LandlordPro tracks every deposit you hold, carries it across lease renewals, walks you through the return-vs-keep settlement with an itemized record, and reminds you of New Mexico's deadline. Free to start — up to 4 units.
Start tracking deposits free →Frequently asked questions
How much can a landlord charge for a security deposit in New Mexico?
1 month's rent is the statutory maximum. See N.M. Stat. § 47-8-18.
How long does a New Mexico landlord have to return a security deposit?
30 days after the tenancy ends, generally with an itemized statement of any deductions. Missing the deadline can forfeit your right to deduct — and in many states triggers statutory damages.
What can a landlord deduct from a deposit in New Mexico?
Typically unpaid rent, damage beyond normal wear and tear, and other charges the lease authorizes. Normal wear and tear — faded paint, worn carpet from ordinary use — is never deductible. Documentation (move-in/move-out photos and an itemized list) is what wins disputes.
Do New Mexico landlords owe interest on security deposits?
Interest required on deposits over 1 month for annual leases.
Handling New Mexico deposits with LandlordPro
LandlordPro keeps a ledger of every deposit you hold — who paid it, which lease it secures, and what happened to it. When a tenancy ends, the settlement workflow records what you returned and what you kept (with reasons), generates a tenant-facing settlement statement, and books any kept portion into your income reports correctly. Combined with the New Mexico eviction guide and move-in/move-out inspections with photos, you'll have the paper trail that deposit statutes reward.
LandlordPro is a software tool, not a law firm. This page summarizes statutes as of June 2026 for general information; amounts, deadlines, and requirements change. Verify N.M. Stat. § 47-8-18 or consult a licensed attorney in New Mexico before acting.