How Big a Deposit Can Be
Section 47-8-18 — one month's rent on a lease under a year; interest on a larger one under an annual lease
An owner may ask for a reasonable deposit, to be applied to damage the resident causes to the premises.
Who handles this in New Mexico: legal aid programs, lawyer referral and the state offices, listed in the New Mexico directory.
- Under a rental agreement of less than one year, the owner may not demand or receive a deposit of more than one month's rent.
- Under an annual rental agreement, an owner who takes more than one month's rent pays the resident interest on the deposit each year, at the passbook rate the section names.
The last month's prepaid rent, which a rental agreement may require, is not a deposit under this section.
Sources for this section (1)
- NMSA 1978, § 47-8-18 — Deposits
Legal information, not legal advice. Verified as of November 2026. Applying it to a particular situation is the work of a licensed New Mexico attorney.