Security deposit return law in New Mexico

In New Mexico, a landlord must return the security deposit within 30 days (NMSA 1978, 47-8-18 (Uniform Owner-Resident Relations Act)).

Return deadline: 30 days after the tenancy ends
Deposit cap: One month's rent (conditions below)
Itemized list of deductions: Required
If you get it wrong: An owner who fails to send the written statement of deductions and the balance within 30 days forfeits the right to withhold any part of the deposit, forfeits any counterclaim in the resident's suit to recover it, is liable for the resident's court costs and reasonable attorney fees, and forfeits the right to bring a separate damages claim against the resident (47-8-18(D)).; NMSA 1978, 47-8-18 (Uniform Owner-Resident Relations Act). Verified 2026-09-25.

When the clock starts, and what goes with the money

If there is cause to keep any part of the deposit, the owner must give the resident an itemized written list of deductions and the balance due within 30 days of the end of the rental agreement or the resident's departure, whichever is later.
Mailing the statement and any payment to the resident's last known address counts as compliance.
Deposits may be applied to unpaid rent and to damages from the resident's noncompliance with the lease or with 47-8-22, but not to normal wear and tear (47-8-18(C)).
The New Mexico Supreme Court has held that no itemization is needed when the deposit is simply applied to unpaid rent (Bruce v. Attaway, 1996, noted in the official annotations).

How much you can collect

New Mexico caps the security deposit at one month's rent (NMSA 1978, 47-8-18 (Uniform Owner-Resident Relations Act)). The conditions attached to that cap matter as much as the number:

The one-month cap applies only to rental agreements shorter than one year: the owner may not demand or receive a deposit above one month's rent (NMSA 47-8-18(A)(2)).
For an annual rental agreement there is no fixed cap, but the deposit must be reasonable, and if it exceeds one month's rent the owner must pay the resident interest on it every year at the passbook rate referenced in the statute (47-8-18(A)(1)).
Last month's prepaid rent required by the lease is not counted as a deposit under this section (47-8-18(B)).

What it costs to get this wrong

An owner who fails to send the written statement of deductions and the balance within 30 days forfeits the right to withhold any part of the deposit, forfeits any counterclaim in the resident's suit to recover it, is liable for the resident's court costs and reasonable attorney fees, and forfeits the right to bring a separate damages claim against the resident (47-8-18(D)).
Bad-faith retention in violation of the section carries a civil penalty of $250 payable to the resident (47-8-18(E)).
There is no double or triple damages multiplier.

Holding the deposit

No separate account or receipt requirement in 47-8-18.
On an annual rental agreement with a deposit above one month's rent, the owner must pay the resident interest annually, equal to the passbook rate permitted to savings and loan associations in New Mexico by the federal home loan bank board (47-8-18(A)(1)).
That federal board no longer exists, so the reference rate is unclear in practice.

Common questions

How long does a New Mexico landlord have to return a security deposit?

30 days, under NMSA 1978, 47-8-18 (Uniform Owner-Resident Relations Act). If there is cause to keep any part of the deposit, the owner must give the resident an itemized written list of deductions and the balance due within 30 days of the end of the rental agreement or the resident's departure, whichever is later. When the clock starts and what goes back with the money is covered above.

Does New Mexico cap the security deposit?

Yes, one month's rent. The one-month cap applies only to rental agreements shorter than one year: the owner may not demand or receive a deposit above one month's rent (NMSA 47-8-18(A)(2)). For an annual rental agreement there is no fixed cap, but the deposit must be reasonable, and if it exceeds one month's rent the owner must pay the resident interest on it every year at the passbook rate referenced in the statute (47-8-18(A)(1)). Last month's prepaid rent required by the lease is not counted as a deposit under this section (47-8-18(B)).

What happens if a New Mexico landlord misses the deadline or withholds wrongly?

An owner who fails to send the written statement of deductions and the balance within 30 days forfeits the right to withhold any part of the deposit, forfeits any counterclaim in the resident's suit to recover it, is liable for the resident's court costs and reasonable attorney fees, and forfeits the right to bring a separate damages claim against the resident (47-8-18(D)). The full rule is under "What it costs to get this wrong" above.

Does a New Mexico security deposit have to be held a particular way?

No separate account or receipt requirement in 47-8-18. The rest is under "Holding the deposit" above.

The deposit paperwork is the part that gets lost. PropManager keeps the deposit on the lease, the move-out itemization with the tenant's file, and the refund in the ledger, so the record exists before a dispute does.

Sources

NMSA 1978, 47-8-18 (Uniform Owner-Resident Relations Act). Source: https://nmonesource.com/nmos/nmsa/en/item/4408/index.do. Verified 2026-09-25.

General information, not legal advice. Check your own lease and any city or county ordinance before you rely on it.