What is the security deposit limit in New Mexico?
For rental agreements lasting less than one year, New Mexico landlords may not collect a security deposit exceeding one month's periodic rent. For leases of one year or longer, no specific statutory maximum applies, but the deposit must be reasonable. If the landlord holds a deposit greater than one month's rent, they must pay the tenant annual interest equal to the passbook savings rate permitted to state savings and loan associations. The deposit must be deposited in a federally insured interest-bearing account in New Mexico within 30 days of receipt. Landlords must return the deposit (with an itemized written statement of deductions) within 30 days after the tenancy ends and the landlord receives the tenant's forwarding address. A landlord who wrongfully retains the deposit in bad faith is liable for a $250 penalty plus the withheld amount.