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, a landlord may not demand a security deposit more than one month’s rent, if the rental agreement is for a duration less than one year. However, if the rental agreement is for a year and the landlord demands a security deposit that is more than one month’s rent then the landlord may be obligated to pay to the tenant an interest on the amount of the security deposit on an annual basis.N.M. Stat. Ann. § 47-8-18 reads:
“(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.”
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.
