State law · statute quotes
New Mexico security deposit laws for landlords and property managers
The words of New Mexico's security deposit statute on each topic, quoted verbatim with pinpoint citations and links to the official source. No summaries, no interpretation.
Reviewed by Mark Shvaya, licensed California real estate broker (DRE #02243502), who uses ProFlow360 in a rental portfolio Mark manages
Last reviewed
Quoted on this page
- Deposit limit
- Returning the deposit
- Itemized statement
- Inspections and condition reports
- Photographs
- Normal wear and tear
- Interest
- Wrongful withholding
NMSA 1978, § 47-8-18
On this page
What this page covers
New Mexico's residential security deposit provisions quoted here come from NMSA 1978, § 47-8-18. Below are the statute's own words on 6 topics, each with a pinpoint citation and a link to the official text. This page does not summarize or interpret the law.
What does New Mexico law say about the amount of a security deposit?
Under the terms of a rental agreement of a duration less than one year, an owner shall not demand or receive from the resident such a deposit in an amount in excess of one month's rent.
What does New Mexico law say about returning the deposit?
In the event actual cause exists for retaining any portion of the deposit, the owner shall provide the resident with an itemized written list of the deductions from the deposit and the balance of the deposit, if any, within thirty days of the date of termination of the rental agreement or resident departure, whichever is later.
What does New Mexico law say about an itemized statement of deductions?
the owner shall provide the resident with an itemized written list of the deductions from the deposit and the balance of the deposit, if any ... The owner is deemed to have complied with this section by mailing the statement and any payment required to the last known address of the resident.
How does New Mexico law refer to normal wear and tear?
No deposit shall be retained to cover normal wear and tear.
What does New Mexico law say about interest on deposits?
Under the terms of an annual rental agreement, if the owner demands or receives of the resident such a deposit in an amount greater than one month's rent, the owner shall be required to pay to the resident annually an interest equal to the passbook interest permitted to savings and loan associations in this state by the federal home loan bank board on such deposit.
What does New Mexico law say about wrongful withholding?
If the owner fails to provide the resident with a written statement of deductions from the deposit and the balance shown by the statement to be due, within thirty days of the termination of the tenancy, the owner: (1) shall forfeit the right to withhold any portion of the deposit ... An owner who in bad faith retains a deposit in violation of this section is liable for a civil penalty in the amount of two hundred fifty dollars
Not quoted on this page
inspections and condition reports, photographs. That does not mean New Mexico law is silent on them; other sections or local rules may apply. Read the full statute.
Has New Mexico's security deposit law changed recently?
The quotes above were compared with the official source on October 16, 2026. For the amendment history, see the history notes on the official pages linked under Sources.
How does ProFlow360 help you document a New Mexico tenancy?
ProFlow360 records and organizes inspection evidence; it does not tell you what the statute requires or allows. What it records, for any state:
- Move-in, routine, pre-move-out and move-out inspections with photos timestamped at capture.
- Each move-out photo beside its move-in match, filed under the tenancy.
- Itemized lines with your classification, the amount you entered, and the estimate or invoice attached.
- An issued record that is sealed, shared by a link that expires and can be revoked.
Do this in ProFlow360
Keep the photos, the call and the invoice on the same line
Every deduction line carries the move-in and move-out photos, your classification and its documents, so the record can be followed by someone who was not there.
Kitchen · counter burn, left of range
Line 2 of 5 · TEN-0418
MI-21 · Jul 12, 2024
MO-29 · Sep 30, 2026Security deposit statutes in nearby states
Sources
Sources checked October 16, 2026.
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