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Security Deposit Return in New Mexico

September 27, 2026 · LawDiver Research Team

The cap is 1 month's rent. The return deadline is 30 days after termination of the rental agreement / surrender of possession, with an itemized list of deductions. Interest: Yes on deposits exceeding one month’s rent on leases of one year or more — interest must be paid; otherwise interest is not generally required. That is what separates New Mexico getting a security deposit back from a generic national summary. Read N.M. Stat. Ann. § 47-8-18 before the background sections below. Wrongful withholding can support damages of twice the amount wrongfully withheld plus attorney fees under the Uniform Owner-Resident Relations Act.

When the deposit must be returned

30 days after termination of the rental agreement / surrender of possession, with an itemized list of deductions

Interest and accounting

Yes on deposits exceeding one month’s rent on leases of one year or more — interest must be paid; otherwise interest is not generally required.

Penalties for wrongful withholding

Wrongful withholding can support damages of twice the amount wrongfully withheld plus attorney fees under the Uniform Owner-Resident Relations Act.

A concrete New Mexico scenario

Here is one way the New Mexico pieces fit together. Change any fact and the statute may point somewhere else.

A residential tenant moves out of a New Mexico rental and the landlord has not returned the deposit.

Check the cap that applied when the deposit was collected: 1 month's rent.
Calendar the return deadline: 30 days after termination of the rental agreement / surrender of possession, with an itemized list of deductions
Interest, if any: Yes on deposits exceeding one month’s rent on leases of one year or more — interest must be paid; otherwise interest is not generally required.
If the landlord keeps money without the required accounting: Wrongful withholding can support damages of twice the amount wrongfully withheld plus attorney fees under the Uniform Owner-Resident Relations Act.

New Mexico caps most deposits at one month’s rent and requires return with itemization within 30 days. Interest may apply on larger deposits for longer leases. Magistrate or metropolitan court handles many disputes.

Practical process for tenants and landlords

Document the unit with dated photos or video at move-in and move-out, keep the lease and any inspection checklist, and send a dated written demand if the deadline passes without a lawful accounting.

Case law: security deposits in New Mexico

Marcy BRITTON, Plaintiff-Appellant, v. OFFICE OF the ATTORNEY GENERAL of New Mexico, Defendant-Appellee.

Marcy BRITTON, Plaintiff-Appellant, v. OFFICE OF the ATTORNEY GENERAL of New Mexico, Defendant-Appellee., 433 P.3d 320 (2018)

…re responsive to [Plaintiff's] request." Through the use of depositions, Plaintiff learned that "the initial search" the AGO conducted in responding to Plaintiff's June 2009 request "was itself artificially limited and not reasonably calculated to identify many of the documents [Plaintiff] was seeking." Because Plaintiff's counsel was also counsel in separate litigation against…

On security deposits, Marcy BRITTON, Plaintiff-Appellant, v. OFFICE OF the ATTORNEY GENERAL of New Mexico, Defendant-Appellee. speaks to the New Mexico dispute in this passage: "Through the use of depositions, Plaintiff learned that 'the initial search' the AGO conducted in responding to Plaintiff's June 2009 request 'was itself artificially limited and not reasonably calculated to identify many of the documents [Plaintiff] was seeking." The surrounding opinion shows how the court applied that language to the record.

Robert E. HEDICKE and Donna J. Kelley-Hedicke, Plaintiffs-Appellees/Cross-Appellants, v. Thomas S. GUNVILLE and Tana

Robert E. HEDICKE and Donna J. Kelley-Hedicke, Plaintiffs-Appellees/Cross-Appellants, v. Thomas S. GUNVILLE and Tana, 133 N.M. 335 (2002)

…o installments of $25,000, which the lease referred to as a security deposit. The lease also contained a provision to apply this $50,000 deposit towards the purchase price in the event the tenants elected to purchase the property. The term of the lease was for ten years, and called for rent payments of $1,500 per month and a total purchase price of $400,000. The Hassenflus assi…

Practitioners open Robert E. HEDICKE and Donna J. Kelley-Hedicke, Plaintiffs-Appellees/Cross-Appellants, v. Thomas S. GUNVILLE and Tana when New Mexico security deposits turns on the distinction in this sentence: "The lease also contained a provision to apply this $50,000 deposit towards the purchase price in the event the tenants elected to purchase the property. The term of the lease was for ten years, and called for rent payments of $1,500 per month and a total purchase price of $400,000." Do not lift it out of the facts the court was deciding.

OSCAR SERNA, Plaintiff-Appellee, v. JONITA GUTIERREZ, Defendant-Appellant

OSCAR SERNA, Plaintiff-Appellee, v. JONITA GUTIERREZ, Defendant-Appellant, 3 N.M. 419 (2012)

…onths and Tenant’s delay in the payment of a portion of her security deposit. Tenant appeals the district court’s order, arguing that the metropolitan court terminated the tenancy without complying with the federal requirements for termination and eviction. Because Landlord failed to demonstrate a serious violation of the lease during its first one-year term, we reverse and rem…

OSCAR SERNA, Plaintiff-Appellee, v. JONITA GUTIERREZ, Defendant-Appellant is worth reading on New Mexico security deposits because the court put the point in its own words: "Tenant’s delay in the payment of a portion of her security deposit. Tenant appeals the district court’s order, arguing that the metropolitan court terminated the tenancy without complying with the federal requirements for termination and eviction." Use that passage as the starting point, then read the facts that precede it.

Cheng v. Rabey

Cheng v. Rabey, 525 P.3d 405 (2022)

…ore than three days late, and required Tenant to pay a $400 security deposit. The lease stated that Landlord would make all necessary repairs to the common areas of the building, required the parties to provide notice to each other in writing, and stated that the lease could only be modified in writing and with the signatures of all parties. The lease was silent as to who was t…

On security deposits, Cheng v. Rabey speaks to the New Mexico dispute in this passage: "The lease stated that Landlord would make all necessary repairs to the common areas of the building, required the parties to provide notice to each other in writing, and stated that the lease could only be modified in writing and with the signatures of all parties." The surrounding opinion shows how the court applied that language to the record.

Manuel MONTOYA, Petitioner-Appellant, v. NEW MEXICO HUMAN SERVICES DEPARTMENT, INCOME SUPPORT DIVISION

Manuel MONTOYA, Petitioner-Appellant, v. NEW MEXICO HUMAN SERVICES DEPARTMENT, INCOME SUPPORT DIVISION, 108 N.M. 263 (1989)

…ehold, such as but not limited to, irrevocable trust funds, security deposits on rental property or utilities, property in probate, and real property which the household is making a good faith effort to sell at a reasonable price and which has not been sold *. [Emphasis added.] 7 C.F.R. § 273.8(e)(8). See also III HSD Income Support Division Program Manual (ISDPM) § FS 412.…

On security deposits, Manuel MONTOYA, Petitioner-Appellant, v. NEW MEXICO HUMAN SERVICES DEPARTMENT, INCOME SUPPORT DIVISION speaks to the New Mexico dispute in this passage: "Emphasis added.] 7 C.F.R. § 273.8(e)(8). See also III HSD Income Support Division Program Manual (ISDPM) § FS 412." The surrounding opinion shows how the court applied that language to the record.

Mary Ana RAMIREZ-EAMES, Plaintiff-Counterdefendant-Appellee, v. Wade H. HOVER, Defendant-Counterclaimant-Appellant

Mary Ana RAMIREZ-EAMES, Plaintiff-Counterdefendant-Appellee, v. Wade H. HOVER, Defendant-Counterclaimant-Appellant, 108 N.M. 520 (1989)

…on a claim brought by Mary Ana RamirezEames to recover the security deposit she paid Hover under a lease agreement entered into on August 8, 1987. The lease was to run from October 1, 1987, to September 30, 1988. Ramirez-Eames agreed to pay $850 per month in rent plus an $800 security deposit. According to her complaint, Ramirez-Eames contacted Hover on August 30, 1987, to inf…

Mary Ana RAMIREZ-EAMES, Plaintiff-Counterdefendant-Appellee, v. Wade H. HOVER, Defendant-Counterclaimant-Appellant is worth reading on New Mexico security deposits because the court put the point in its own words: "Mary Ana RamirezEames to recover the security deposit she paid Hover under a lease agreement entered into on August 8, 1987. The lease was to run from October 1, 1987, to September 30, 1988. Ramirez-Eames agreed to pay $850 per month in rent plus an $800 security deposit." Use that passage as the starting point, then read the facts that precede it.

Stodgell v. Weissman

Stodgell v. Weissman (2024)

…Section 47-8-18 is to prevent the unexplained retention of security deposits to pay for alleged damages to the property.” Bruce v. Attaway, 1996-NMSC-030, ¶ 9, 121 N.M. 755, 918 P.2d 341 (emphasis added). As we explained in Attaway, a case on which Tenants rely in their briefing, the thirty-day time limit in Section 47-8-18(C) prevents a landlord, who has sole control over the…

On security deposits, Stodgell v. Weissman speaks to the New Mexico dispute in this passage: "Section 47-8-18 is to prevent the unexplained retention of security deposits to pay for alleged damages to the property.” Bruce v. Attaway, 1996-NMSC-030, ¶ 9, 121 N.M. 755, 918 P.2d 341 (emphasis added)." The surrounding opinion shows how the court applied that language to the record.

Key takeaways

Maximum deposit: 1 month's rent
Return deadline: 30 days after termination of the rental agreement / surrender of possession, with an itemized list of deductions
Interest: Yes on deposits exceeding one month’s rent on leases of one year or more — interest must be paid; otherwise interest is not generally required.
Penalties: Wrongful withholding can support damages of twice the amount wrongfully withheld plus attorney fees under the Uniform Owner-Resident Relations Act.
Primary authority: N.M. Stat. Ann. § 47-8-18.

Deposit limits in New Mexico

1 month's rent

Frequently asked questions

How much can a landlord charge for a security deposit in New Mexico?