New Hampshire’s security deposit law sets strict rules for how landlords can collect, hold, use, and return tenant deposits. Knowing these requirements helps prevent disputes over deductions, storage, interest, and move-out responsibilities.
This guide breaks down every key rule landlords need to follow, including deposit limits, approved storage methods, interest requirements, lawful deductions, return deadlines, and how to handle disputes.
Statutes Regulating New Hampshire Security Deposits
New Hampshire’s security deposit laws appear in RSA 540-A:6 to 540-A:8 of the New Hampshire Revised Statutes, which outline how landlords collect, hold, deduct, and return deposits.
Some cities and counties may have regulations that are more restrictive than those presented here. Always check local laws before collecting a security deposit.
Maximum Security Deposit Amounts Under New Hampshire Law
| Quick Facts | Answer |
| Maximum / Limit | $100 or One Month’s Rent |
| Receipt Requirement | Yes |
| Inventory Requirement | Yes |
| Interest Requirement | Yes (After One Year) |
New Hampshire law sets a clear limit on security deposits, allowing landlords to collect up to 1 month’s rent or $100, whichever is higher. This regulation applies to typical residential leases and does not vary by lease type, contract length, or similar factors.
New Hampshire does not offer exceptions that raise the maximum deposit amount. While owner-occupied buildings with 6 or fewer units receive limited exemptions from certain administrative rules, the statewide cap still applies to deposit amounts. No local jurisdictions in New Hampshire impose different limits.
Security Deposit Storage Regulations
New Hampshire law requires landlords to hold security deposits separately from personal or business funds in an account at a New Hampshire bank, savings and loan association, or credit union. The deposit remains the tenant’s property until the landlord makes a lawful deduction.
Within 30 days of receiving the deposit, landlords must notify tenants in writing of the name and address of the financial institution holding the funds. Landlords may not place a tenant’s security deposit in an account that mixes the money with personal or operating funds, though multiple tenant deposits may be held together in a single trust account.
Security Deposit Interest in New Hampshire
New Hampshire law requires landlords to hold security deposits in accounts at a New Hampshire bank, savings and loan association, or credit union so the funds can earn interest if held for at least 1 year.
If the deposit is held that long, the landlord must pay the tenant interest at the same rate the account earns, either annually on request or when the tenancy ends, and must return any remaining interest along with the security deposit after lawful deductions. Within 30 days of taking the deposit and upon request later, landlords must disclose to tenants where the deposit is held and the interest rate.
Making Security Deposit Deductions
Lawful security deposit deductions allow landlords to repair damage beyond normal wear and tear and restore the rental unit for the next tenant. Using deposits properly helps maintain property condition and ensures smooth turnover between tenancies.
When Landlords Can Deduct
New Hampshire landlords may draw from a tenant’s security deposit for the following reasons:
- Repair damage that exceeds normal wear and tear
- Restore or replace items that the tenant damaged during the tenancy
- Replace missing fixtures or equipment originally supplied by the landlord
- Cover necessary cleaning when the tenant leaves the unit unclean
- Recover unpaid rent or other charges allowed under the lease
When Landlords Can’t Deduct
New Hampshire landlords may not draw from a tenant’s security deposit for the following reasons:
- Address normal wear that develops through everyday residential use
- Replace appliances that stopped working due to natural aging
- Fix flooring that deteriorated over time due to regular occupancy
- Repair fading or minor scuffs consistent with long-term use
- Correct issues that result from the landlord’s own maintenance failures
Necessary Documentation to Accompany Deductions
New Hampshire law requires landlords to give tenants an itemized written list of all deductions within 30 days after the tenancy ends. Landlords must also include receipts or invoices for labor and materials when repairs go beyond normal wear and tear.
What to Do When Deductions are Greater Than the Deposit
Some tenants cause damage that exceeds the security deposit. When that happens, landlords should document every repair cost, send the tenant a written demand for the remaining balance, and request prompt payment.
Under New Hampshire law, landlords must still return the deposit or provide an itemized list of deductions within 30 days after the tenancy ends, even when damages exceed the deposit. If the tenant does not pay the additional amount owed, landlords can seek to recover the balance in small claims court.
Returning Security Deposits to Tenants
New Hampshire law outlines how landlords must return any remaining portion of a tenant’s security deposit after lawful deductions. These rules help ensure tenants receive timely refunds and clear documentation at the end of the tenancy.
Required Timeline for Return
New Hampshire requires landlords to return the security deposit and provide an itemized list of deductions within 30 days after the tenancy ends or within 30 days after the landlord receives the tenant’s forwarding address, whichever happens later. This deadline applies across all residential rentals in the state.
Method for Return
New Hampshire landlords usually return the security deposit by check or another traceable payment method. The return must include an itemized list of deductions, and landlords must attach receipts or invoices for repair costs that go beyond normal wear and tear.
Penalties for Late Return
New Hampshire law states that a landlord who willfully misses the deadline or withholds funds without a valid cause may owe the tenant double the amount wrongfully withheld. Courts may also award additional damages when appropriate.
Security Deposit Disputes
If a tenant disagrees with how a landlord handles a security deposit, they have every right to raise a dispute. Tenants usually start by reviewing the itemized deductions, requesting written clarification, and gathering their own records before negotiating directly with the landlord or taking further legal steps when needed.
As a landlord, prepare for security deposit disputes by using move-in and move-out checklists, staying on top of accounting and bookkeeping, and including clear terms in all lease agreements. Strong documentation, proactive communication, knowledge of New Hampshire laws, and consistent compliance with required timelines also help prevent disputes.
Using Condition Reports to Document Damage
Security deposits in New Hampshire work better when landlords use detailed move-in and move-out condition reports to track a unit’s condition, reduce disagreements, and document changes over time.
To do so, use property management software to create digital reports with photos and videos directly from a smartphone. Documenting the property before move-in and after move-out will help you support legitimate deductions and avoid disputes.
Sign up for a free TurboTenant account to build accurate condition records and simplify every stage of the security deposit process.
FAQs: New Hampshire Security Deposit Law
Can a landlord deduct painting from a security deposit in New Hampshire?
A landlord may deduct painting costs only when a tenant leaves damage beyond normal wear, such as heavy marks, stains, or unauthorized colors. Routine repainting during standard turnover does not qualify for a deduction.
Are nail holes considered normal wear and tear in New Hampshire?
Small nail holes usually count as normal wear and tear in New Hampshire. A landlord may deduct only when holes are excessive or cause damage that requires patching or repainting beyond typical turnover work.
Does the landlord or tenant have to pay for carpet cleaning in New Hampshire?
A tenant must cover carpet cleaning only when the tenant leaves stains, odors, or damage beyond normal wear and tear. Routine cleaning resulting from ordinary use remains the landlord’s responsibility and does not qualify for deduction.
What happens if a landlord doesn’t return a security deposit within 30 days in New Hampshire?
A landlord who willfully misses the 30-day deadline may owe the tenant double the amount wrongfully withheld. Courts may also award additional damages when they determine the landlord acted improperly or failed to follow legal procedures.
