|Maximum / Limit
|$100 or One Month’s Rent
|Yes (After One Year)
To learn about laws on security deposit returns in New Hampshire, click here.
Maximum Security Deposit Allowed in New Hampshire
New Hampshire law limits the maximum security deposit to $100 or one month’s rent, whichever is greater, unless the rental unit is exempt.
Exemptions – The maximum security deposit does not apply to:
- A single-family home if the landlord owns no other rental property
- Owner-occupied buildings with 5 or fewer units (except tenants 60 or older)
Can Landlords Charge an Additional Pet Deposit in New Hampshire?
In New Hampshire, landlords can charge a pet deposit, except for service dogs and emotional support animals. However, the total security deposit cannot exceed one month’s rent. Landlords cannot exceed the limit by giving them another name like “pet deposit” or “damage deposit.”
This law does not prevent landlords from adding a monthly pet premium.
How Much Rent Can a Landlord Collect Upfront in New Hampshire?
Landlords in New Hampshire can collect the first month’s rent in advance. However, landlords can only collect one additional month’s rent in advance, whether called a “security deposit” or “last month’s rent,” unless the unit is exempt. “Last month’s rent” is considered a security deposit by the law.
Security Deposit Collections in New Hampshire
When collecting a security deposit, landlords in New Hampshire must provide a receipt that states the amount of the deposit and where it will be held, and notifies the tenant of their right to document any conditions of the rental unit that need to be repaired.
Do Landlords Have to Provide a Receipt for the Security Deposit in New Hampshire?
Landlords in New Hampshire must provide a receipt for the security deposit unless the tenant pays by check.
If the tenant pays by check, the landlord is still required to notify the tenant of their right to report any conditions of the rental unit that need to be repaired.
What Obligations Do Landlords Have to Establish the Condition at Move-in in New Hampshire?
To collect a security deposit, landlords in New Hampshire must notify the tenant in writing of their right to report any conditions of the rental unit in need of repair or correction within 5 days of occupancy.
Security Deposit Holdings in New Hampshire
New Hampshire law requires landlords to hold security deposits in a bank, savings and loan association, credit union, or post a bond. The security deposits cannot be commingled with the landlord’s own funds.
Option 1: Bank, Savings and Loan Association, or Credit Union. Upon the tenant’s request, the landlord must provide the tenant with the:
- Name of the financial institution
- Amount deposited
- Account number
- Interest rate
Option 2: Bond. If the landlord chooses to post a bond, it must be written by a company within the state and posted with the clerk of the city or town where the rental unit is located.
Are Tenants Entitled to Interest on Their Security Deposit in New Hampshire?
Tenants are entitled to earn interest if their security deposit is held longer than one year equal to the standard interest rate for a savings account at the financial institution where it is being held.
Every three years, the tenant may request payment of the interest accrued on the deposit. If requested by the tenant within 30 days before the current lease term’s anniversary, the landlord must provide the interest no later than 15 days after the lease’s anniversary date.
How Are Security Deposits Accounted for in New Hampshire?
Security deposits are not considered taxable income when they are collected.
What Happens to a Security Deposit When the Property is Sold in New Hampshire?
Within 5 days after a property is sold in New Hampshire, the seller must transfer the security deposit to the new owner, who must handle it according to the same rules. The original landlord must notify the tenant by registered or certified mail of the transfer and the name and address of their successor.