New Mexico security deposit rules.
The New Mexico rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: N.M. Stat. § 47-8-18 · Not legal advice
How much can be charged
One month’s rent for terms under one year. For terms of one year or more any reasonable deposit, but interest is owed if it exceeds one month’s rent.
When it has to come back
30 days from termination, with itemised deductions.
Interest
If the deposit exceeds one month and the lease term is one year or more, interest equal to passbook rates must be paid annually.
Where the money has to sit
No segregation requirement.
What catches operators out
- Lease length determines whether the cap applies — a common point of confusion at renewal.
- Missing the 30-day deadline forfeits the right to withhold any of the deposit and to counterclaim, and makes the landlord liable for costs and attorney’s fees. Bad-faith retention adds a $250 civil penalty.
What this looks like with Standby in New Mexico.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and New Mexico law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in New Mexico. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.