How to Hold and Return a Security Deposit in New Mexico

Managing a Security Deposit in New Mexico

In New Mexico, you may not charge a security deposit that exceeds one month's rent.

Storing the Deposit

New Mexico state law offers no guidance on how to store a security deposit. Many people opt to keep it in a bank account separate from their personal finances.

Returning the Deposit

You must return your subtenant's security deposit within 30 days of the end of the sublease. You can use the security deposit to cover any unpaid rent at the end of the sublease or to cover the cost of any damages to the unit that exceed normal wear and tear. You must provide an itemized list of any deductions you take from the security deposit to your subtenant within 30 days of the end of the sublease. If you fail to follow the law regarding the proper return of a security deposit, your subtenant can take you to small claims court and potentially be awarded the deposit in full plus attorney's fees.