Full question:
My landlord has demanded a security deposit that is more than one month’s rent. Can a landlord in New Mexico demand a security deposit greater than a month’s rent?
- Category: Landlord Tenant
- Date:
- State: New Mexico
Answer:
In New Mexico, landlords cannot demand a security deposit greater than one month’s rent for rental agreements lasting less than one year. If the rental agreement is for a year or longer, the landlord may require a larger deposit, but must pay the tenant annual interest on that deposit. This interest must equal the passbook interest rate permitted for savings and loan associations in the state, as outlined in N.M. Stat. Ann. § 47-8-18.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.