The rule
- Deposit limit
- 1 month’s rent (leases under one year)
- Return deadline
- 30 days
- Interest owed
- Not required
- Itemized deductions
- Required
- The limit
- Leases of one year or more may require more, but the owner must then pay interest on the whole deposit.
- The deadline
- 30 days after the rental agreement ends or the resident leaves, whichever is later.
- Interest
- Required only when a deposit for an annual lease exceeds one month’s rent (passbook rate, paid yearly).
- Deductions
- The landlord must give you an itemized list of anything kept from the deposit.
- If it isn’t returned
- Missing the 30-day itemized list forfeits the right to withhold, counterclaim or sue for damages, and the owner owes court costs and attorney’s fees. Bad-faith retention adds a $250 civil penalty.
Law: NMSA 1978 § 47-8-18
Last reviewed September 30, 2026
Not legal advice. Statutes change; check the linked section.