| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent, utilities, and late fees
Costs of damage Costs due to breach of lease Cleaning costs |
| Return Deadline | 30 days |
| Itemized Deductions | Required |
| Penalty for Late Return | Deposit + $250 + Court Costs (+ Attorneys’ Fees in Some Cases) |
For laws on security deposit collections and holdings in New Mexico, click here.
Some cities and counties may have regulations which are different from those presented here. Always check local laws.
Security Deposit Deductions in New Mexico
New Mexico allows the following deductions from a security deposit:
- Unpaid rent, utilities, and late fees
- Costs of damage excluding normal wear and tear
- Costs due to a breach of the lease agreement
- Cleaning costs
Most states, including New Mexico, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable and reflect actual landlord expenses.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What Is Considered Normal Wear and Tear in New Mexico?
Unlike many states, New Mexico has a formal definition for “normal wear and tear:”
“Normal wear and tear” means deterioration that occurs based upon the use for which the rental unit is intended… by the residents or by any other person in the dwelling unit or on the premises with the resident’s consent; however, uncleanliness does not constitute normal wear and tear.
Examples include:
- Lightly scratched glass
- Faded flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
New Mexico law defines “damage” as:
[Deterioration from] negligence, carelessness, accident, abuse or intentional damage of the premises, equipment or chattels.
Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in New Mexico?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in New Mexico?
New Mexico landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in New Mexico?
New Mexico law allows landlords to charge for cleaning costs limited to bringing the residence back to its original condition at the start of the lease term. Lack of cleanliness is considered deductible rather than normal wear and tear.
Can the Landlord Charge for Painting in New Mexico?
In New Mexico, landlords can charge for painting, except for normal wear and tear. For example, if the tenant:
- Causes damage beyond normal wear and tear
- Repaints the wall but is not permitted to do so under the lease agreement
- Repaints the wall in an unprofessional way
Normal wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint
Landlords can charge for repainting if the damage is not the result of normal use. This includes stains, large or deep scratches, and water damage.
Security Deposit Returns in New Mexico
Landlords must return a security deposit by mail with an itemized statement of deductions, if any, to the tenant’s last known address no later than 30 days after the lease term ends or the tenant vacates the rental unit, whichever is later.
How Long Do Landlords Have to Return Security Deposits in New Mexico?
New Mexico landlords have 30 days after the lease term ends or the tenant vacates the rental unit, whichever is later, to return any unused portion of the security deposit.
Do Landlords Owe Interest on Security Deposits in New Mexico?
New Mexico law requires landlords to provide interest on security deposits that are greater than one month’s rent. The minimum annual interest rate is equal to the passbook interest permitted to the savings and loan associations in New Mexico by the federal home loan bank board.
How Do Landlords Give Notice in New Mexico?
Written notice must be mailed to the tenant’s last known address and must include the amount of the security deposit due, if any, to the tenant, plus an itemized statement of deductions.
Can a Security Deposit Be Used for Last Month’s Rent in New Mexico?
New Mexico law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Disputes in New Mexico
If landlords do not return the security deposit within the 30-day period, tenants can file for the return of the full security deposit plus damages in court up to $250 . Tenants also can recover court costs and reasonable attorneys’ fees when the landlord is not complying with deduction notice requirements.
Tenants can also take legal action against a landlord for:
- Failure to provide an itemized statement when deductions are made
- Failure to provide interest due
- Unreasonable deductions
How Can Tenants File a Dispute for a Security Deposit in New Mexico?
If a landlord fails to return the security deposit, the tenant can file a dispute in Small Claims Court if the amount of damages is less than $10,000. If the amount is greater, the tenant must file in the local District Court.
A small claims case must be filed within 4 or 6 years depending on whether the lease agreement was oral or written. An attorney is not required but permitted. Cases are filed in the Small Claims Court for the county where the plaintiff or defendant lives or where the property is located. The filing fee is $77.
Sources
- 1 N.M. Stat. § 47-8-18(C)
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Upon termination of the residency, property or money held by the owner as deposits may be applied by the owner to the payment of rent and the amount of damages which the owner has suffered by reason of the resident’s noncompliance with the rental agreement or Section 47-8-22 NMSA 1978. No deposit shall be retained to cover normal wear and tear. In the event actual cause exists for retaining any portion of the deposit, the owner shall provide the resident with an itemized written list of the deductions from the deposit and the balance of the deposit, if any, within thirty days of the date of termination of the rental agreement or resident departure, whichever is later. The owner is deemed to have complied with this section by mailing the statement and any payment required to the last known address of the resident. Nothing in this section shall preclude the owner from retaining portions of the deposit for nonpayment of rent or utilities, repair work or other legitimate damages.Source Link
- 2 N.M. Stat. § 47-8-3(J)
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“Normal wear and tear” means deterioration that occurs based upon the use for which the rental unit is intended, without negligence, carelessness, accident, abuse or intentional damage of the premises, equipment or chattels of the owner by the residents or by any other person in the dwelling unit or on the premises with the resident’s consent; however, uncleanliness does not constitute normal wear and tear.Source Link
- 3 N.M. Stat. § 47-8-18(A)
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An owner is permitted to demand from the resident a reasonable deposit to be applied by the owner to recover damages, if any, caused to the premises by the resident during his term of residency.
(1) Under the terms of an annual rental agreement, if the owner demands or receives of the resident such a deposit in an amount greater than one month’s rent, the owner shall be required to pay to the resident annually an interest equal to the passbook interest permitted to savings and loan associations in this state by the federal home loan bank board on such deposit.
(2) Under the terms of a rental agreement of a duration less than one year, an owner shall not demand or receive from the resident such a deposit in an amount in excess of one month’s rent.
Source Link - 4 N.M. Stat. § 47-8-18(E)
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An owner who in bad faith retains a deposit in violation of this section is liable for a civil penalty in the amount of two hundred fifty dollars ($250) payable to the resident.Source Link
- 5 N.M. Stat. § 47-8-18(D)
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If the owner fails to provide the resident with a written statement of deductions from the deposit and the balance shown by the statement to be due, within thirty days of the termination of the tenancy, the owner:
(1) shall forfeit the right to withhold any portion of the deposit;
(2) shall forfeit the right to assert any counterclaim in any action brought to recover that deposit;
(3) shall be liable to the resident for court costs and reasonable attorneys’ fees; and
(4) shall forfeit the right to assert an independent action against the resident for damages to the rental property.
Source Link - 6 N.M. Stat. § 35-3-3
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Magistrates have jurisdiction in civil actions in which the debt or sum claimed does not exceed ten thousand dollars ($10,000), exclusive of interest and costs.
Source Link
