How much a landlord can charge, and which deductions are actually legal
This page covers how much a landlord may charge in New Mexico, and which deductions from a residential deposit are lawful. It assumes the tenancy has ended and the question is what may be withheld.
It does not cover:
Leases under 1 year: 1 month's rent. Leases of 1 year or more: no statutory cap, but any deposit exceeding 1 month's rent requires annual interest at the passbook savings rate — § 47-8-18(A).
Caps frequently carry exceptions — smaller landlords, furnished units, or pets are treated differently in most states. Read the provision itself rather than relying on the headline figure.
| Claimed deduction | Permitted in New Mexico |
|---|---|
| Unpaid rent owed to the landlord | Permitted, if substantiated |
| Damages from the resident's noncompliance with the rental agreement or obligations under the UORRA | Permitted, if substantiated |
| Claimed deduction | Permitted in New Mexico |
|---|---|
| Normal wear and tear | Not permitted |
| Any amount without the written itemized list within 30 days | Not permitted |
Whether a specific charge is lawful depends on the facts — how old the damage is, whether the lease addressed it, and whether the landlord can document the cost. A charge being in the "permitted" column does not make it automatically collectable.
The landlord may apply the deposit only toward rent owed and damages from the resident's noncompliance, and must itemize deductions in writing within 30 days. The landlord may not retain any amount for normal wear and tear. Failure to timely itemize forfeits the landlord's withholding, counterclaim, and independent-claim rights.
In New Mexico the burden sits with the landlord. This matters strategically: if the burden is theirs, your task is to request the documentation rather than to prove the deduction wrong. N.M. Stat. § 47-8-18(C) ↗
No statutory penalty beyond returning the deposit.
If the landlord fails to provide the written statement and refund the balance within 30 days, the landlord FORFEITS the right to withhold any portion of the deposit, forfeits the right to assert any counterclaim in an action to recover the deposit, forfeits the right to assert an independent claim for damage to the property, AND is liable for the resident's court costs and reasonable attorney fees. This is a rights-forfeiture remedy, not a multiplier.
N.M. Stat. § 47-8-18(D) ↗A flat penalty of $250.
In addition, a landlord who retains a deposit in BAD FAITH is liable for a civil penalty of $250, payable to the resident. Bad faith is a separate finding beyond the 30-day forfeiture.
N.M. Stat. § 47-8-18(E) ↗The tenant may recover the landlord's attorney fees.
Court costs and reasonable attorney fees are recoverable when the landlord fails to timely return the deposit under §47-8-18(D).
N.M. Stat. § 47-8-18(D) ↗A landlord who misses the 30-day itemization/refund deadline forfeits the right to withhold ANY portion, to counterclaim, and to sue separately for property damage — plus court costs and attorney fees. This is often more valuable than a fixed multiplier.
N.M. Stat. § 47-8-18(D) ↗On top of the forfeiture remedy, a landlord who retains the deposit in bad faith owes a separate $250 civil penalty payable to the resident.
N.M. Stat. § 47-8-18(E) ↗““I'm deducting for damages.””
You must provide a written itemized list within 30 days of the later of termination or my departure. Normal wear and tear is not deductible. If you missed the deadline, you have forfeited the right to withhold anything.
N.M. Stat. § 47-8-18(C), (D)
““I'll counterclaim for property damage.””
By failing to return my deposit with an itemized statement within 30 days, you forfeited your right to assert a counterclaim or any independent claim for property damage.
N.M. Stat. § 47-8-18(D)
““The deposit was more than one month, so I set my own terms.””
For a lease under 1 year the deposit is capped at 1 month's rent. For a year-plus lease you owe annual interest on anything above 1 month.
N.M. Stat. § 47-8-18(A)
Some widely circulated summaries of New Mexico deposit law state things the statute does not say. We list the disagreements rather than picking a side silently.
| Source | What it says |
|---|---|
| Some summaries | 1 month's rent, always |
| N.M. Stat. § 47-8-18(A) | 1 month only for leases under 1 year; year-plus leases have no cap (interest applies above 1 month) |
What we follow: Term-dependent cap
The statute distinguishes by lease term. Reporting a blanket 1-month cap would misstate the rule for annual leases.
Every figure on this page comes from the official text, not from a summary. The table below lists each provision used and the date it was last checked against the source.
| Statute | Last verified | Source |
|---|---|---|
| N.M. Stat. § 47-8-18(C) | 2026-10-15 | official text ↗ |
| N.M. Stat. § 47-8-18(D) | 2026-10-15 | official text ↗ |
| N.M. Stat. § 47-8-18(E) | 2026-10-15 | official text ↗ |
Primary reference: N.M. Stat. § 47-8-18 (Deposits). Where the official text and a secondary summary disagree, this page follows the official text and says so. Amendments are recorded on the site changelog.
A self-help letter is the right starting point for a single deposit you can document. Get legal help if:
Local legal aid organisations and tenant unions offer free help for qualifying cases. They are independent of this site — we list them because they are the right place to go, not because they link here.
New Mexico Security Deposit Return
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The statute does not permit deductions for: normal wear and tear; any amount without the written itemized list within 30 days.
The landlord. The landlord may apply the deposit only toward rent owed and damages from the resident's noncompliance, and must itemize deductions in writing within 30 days. The landlord may not retain any amount for normal wear and tear. Failure to timely itemize forfeits the landlord's withholding, counterclaim, and independent-claim rights.
Leases under 1 year: 1 month's rent. Leases of 1 year or more: no statutory cap, but any deposit exceeding 1 month's rent requires annual interest at the passbook savings rate — § 47-8-18(A).
No. Normal wear and tear