| Quick Facts | Answer |
| Maximum / Limit | $100 or One Month’s Rent |
| Receipt Requirement | Yes |
| Inventory Requirement | Yes |
| Interest Requirement | 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.
Sources
- 1 NH Rev Stat § 540-A:6
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A landlord shall not demand or receive any security deposit in an amount or value in excess of one month’s rent or $100, whichever is greater.
Source Link - 2 NH Rev Stat § 540-A:5
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A person who rents or leases a single-family residence and owns no other rental property or who rents or leases rental units in an owner-occupied building of 5 units or less shall not be considered a “landlord” for the purposes of this subdivision, except for any individual unit in such building which is occupied by a person or persons 60 years of age or older.
Source Link - 3 NH Rev Stat § 540-A:6
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No receipt shall be required when the tenant furnishes a security deposit in the form of a personal check, a bank check, or a check issued by a government or nonprofit agency on behalf of the tenant.
Source Link - 4 NH Rev Stat § 540-A:6
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…upon receiving a deposit from a tenant, a landlord shall…notify the tenant that any conditions in the rental unit in need of repair or correction should be noted on the receipt or given to the landlord in writing within 5 days of occupancy.
Source Link - 5 NH Rev Stat § 540-A:6
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A landlord may mingle all security deposits held by him in a single account held in trust for the tenant at any bank, savings and loan association or credit union…
Source Link - 6 NH Rev Stat § 540-A:6
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A bond written by a company located in New Hampshire and posted with the clerk of the city or town in which the residential premises are located in an amount equivalent to the total value of a security deposit held by the landlord…
Source Link - 7 NH Rev Stat § 540-A:6
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Security deposits…shall not be mingled with the personal moneys…of the landlord…
Source Link - 8 NH Rev Stat § 540-A:6
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Upon request, a landlord shall provide to the tenant the name of any bank, savings and loan association, or credit union where his security deposit is on deposit, the account number, the amount on deposit, and the interest rate on the deposit and shall allow the tenant to examine his security deposit records.
Source Link - 9 NH Rev Stat § 540-A:6
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A landlord who holds a security deposit for a period of one year or longer shall pay to the tenant interest on the deposit at a rate equal to the interest rate paid on regular savings accounts in the New Hampshire bank, savings and loan association, or credit union in which it is deposited…
Source Link - 10 NH Rev Stat § 540-A:6
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…a tenant may request the interest accrued on a security deposit every 3 years, 30 days before the expiration of that year’s tenancy. The landlord shall comply with the request within 15 days of the expiration of that year’s tenancy.
Source Link - 11 NH Rev Stat § 540-A:6
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Any landlord…shall turn the security deposit over at the time of delivery of the deed or instrument of assignment, or within 5 days thereafter…to one of the following…his grantee…his assignee…the receiver in a foreclosure action…the purchaser…
Source Link - 12 NH Rev Stat § 540-A:6
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…the landlord shall notify the tenant by registered or certified mail of such turning over, including the name and address of the grantee, assignee, purchaser, or receiver who then holds the security deposit.
Source Link
