New Mexico Security Deposit Demand Letter
Direct answer
In New Mexico, the landlord must return the deposit within 30 calendar days. The deadline is measured from this trigger: After the date of termination of the rental agreement or resident departure, whichever is later. The verified state formula is failure to provide written statement of deductions and balance within 30 days: forfeit right to withhold any portion of deposit, forfeit counterclaim in deposit-recovery action, liability for court costs and reasonable attorney fees, and forfeit independent damage action against resident; additional $250 civil penalty if owner retains deposit in bad faith under N.M. Stat. Ann. § 47-8-18.
Key facts
| Deadline | 30 calendar days |
|---|---|
| Deadline trigger | after the date of termination of the rental agreement or resident departure, whichever is later |
| Penalty formula | failure to provide written statement of deductions and balance within 30 days: forfeit right to withhold any portion of deposit, forfeit counterclaim in deposit-recovery action, liability for court costs and reasonable attorney fees, and forfeit independent damage action against resident; additional $250 civil penalty if owner retains deposit in bad faith |
| Bad faith required | No |
| Itemization required | Yes |
| Interest on deposit | Conditional: Required only when, under an annual rental agreement, the owner demands or receives a deposit greater than one month's rent: annual interest equal to the passbook interest permitted to savings and loan associations in New Mexico by the federal home loan bank board. No interest mandate for deposits of one month or less. |
| Maximum deposit | For rental agreements of duration less than one year: not more than one month's rent. For annual rental agreements: no fixed multiple-of-rent statutory cap, but if deposit exceeds one month's rent the owner must pay annual passbook interest (federal home loan bank board rate for S&Ls in New Mexico). |
| Forwarding address required | No |
| Small claims limit | $10,000 (Magistrate Court / Metropolitan Court civil (NMSA 35-3-3 / 34-8A-3)) in Magistrate Court or Metropolitan Court (Bernalillo County) |
| Statute citation | N.M. Stat. Ann. § 47-8-18 |
Statute says
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. ... 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. 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.
What this means
Read the deadline, trigger, and penalty together before sending a letter. Match the dates in your documents to the trigger listed above, then cite N.M. Stat. Ann. § 47-8-18 and request the deposit amount supported by your records.
Worked example
Use your actual deposit amount when you write the letter. For context, median rent in New Mexico is $1,067 according to U.S. Census Bureau QuickFacts, American Community Survey 2020-2024 5-Year Estimates data as of .
- Bernalillo County: $1,144
- Doña Ana County: $934
- Santa Fe County: $1,389
- Sandoval County: $1,427
Example demand basis: a deposit equal to the state median rent starts at $1,067 before applying the state formula: failure to provide written statement of deductions and balance within 30 days: forfeit right to withhold any portion of deposit, forfeit counterclaim in deposit-recovery action, liability for court costs and reasonable attorney fees, and forfeit independent damage action against resident; additional $250 civil penalty if owner retains deposit in bad faith.
County small claims courts
| County | Court and city | Limit | Filing fee | E-filing | Court link |
|---|---|---|---|---|---|
| Bernalillo | Bernalillo County Metropolitan Court, Albuquerque | $10,000 | Confirm current filing and service fees with the court clerk. | Not verified | Court site |
| Doña Ana | Doña Ana County Magistrate Court, Las Cruces | $10,000 | Confirm current filing and service fees with the court clerk. | Not verified | Court site |
| Santa Fe | Santa Fe County Magistrate Court, Santa Fe | $10,000 | Confirm current filing and service fees with the court clerk. | Not verified | Court site |
| Sandoval | Sandoval County Magistrate Court, Bernalillo | $10,000 | Confirm current filing and service fees with the court clerk. | Not verified | Court site |
Free New Mexico template, built from verified state data
I am requesting the return of my security deposit. The verified New Mexico data for this page lists a 30 calendar days return window and cites N.M. Stat. Ann. § 47-8-18.
Before you send
- Collect your lease, deposit receipt, and move-in records.
- Save photos, videos, and messages about move-out condition.
- Write down the move-out date you can prove.
- Confirm the forwarding address you gave the landlord.
- Send by certified mail when appropriate, and keep a copy of the final letter and delivery proof.
When this letter will NOT work
- The dispute is not about return of a security deposit.
- You need urgent court relief instead of a demand letter.
- You cannot identify the landlord or property manager to contact.
- Your documents point to a different state or a different kind of claim.
Typical mistakes
- Sending a letter before organizing the documents that prove the timeline.
- Demanding an amount that does not match the payment records.
- Leaving out the forwarding address or preferred response method.
- Mixing repair complaints into a deposit letter without separating the issues.
FAQ
Does Albuquerque have its own security deposit law?
No separate city security-deposit ordinance is listed in the verified data. Check the applicable New Mexico law and local rules.
Does Las Cruces have its own security deposit law?
No separate city security-deposit ordinance is listed in the verified data. Check the applicable New Mexico law and local rules.
Does Rio Rancho have its own security deposit law?
No separate city security-deposit ordinance is listed in the verified data. Check the applicable New Mexico law and local rules.
Does Santa Fe have its own security deposit law?
No separate city security-deposit ordinance is listed in the verified data. Check the applicable New Mexico law and local rules.
Can I use this if I do not know the exact deposit amount?
Use the amount shown in your lease, receipt, or move-in records. If records conflict, keep copies and avoid guessing in the letter.
Should I send evidence with the first letter?
Attach copies when they prove the basic facts, such as payment, move-out condition, forwarding address, or prior messages.
Can this page replace legal advice?
No. This page is self-help information for organizing a demand letter and checking the cited data before you act.
City data on this page currently includes Albuquerque, Las Cruces, Rio Rancho, Santa Fe, Roswell, Farmington, Hobbs, Clovis.
Tenant resources
- New Mexico Legal Aid - Housinglegal aid, 1-833-545-4357
- New Mexico Courts - Landlord-Tenant Self-Representationcourt self help, 855-268-7804
- New Mexico Department of Justice - Consumer Protectionag consumer in Santa Fe, 505-490-4060
- Disability Rights New Mexicolegal aid in Albuquerque, 800-432-4682