Lease under 1 year1 month max
Security deposit may not exceed one month’s rent.
Annual leaseInterest if > 1 month
Annual interest requirement applies when the deposit exceeds one month’s rent.
Itemization / balance30 days
Subsection C uses the later of rental-agreement termination or resident departure.
Normal wearNot deductible
The statute expressly excludes normal wear and tear.
What to preserve
- Rental agreement and its duration.
- Deposit receipt and amount.
- Move-out / resident-departure date.
- Rental-agreement termination date.
- Written itemized deductions and remaining balance.
- Move-in and move-out condition evidence.
Lease duration matters before you apply a cap
A one-month rule cannot be applied mechanically to every New Mexico tenancy. The statute expressly distinguishes agreements shorter than one year from annual rental agreements.
Check the exact lease term and dates. New Mexico deposit limits differ by rental-agreement duration, and the accounting rule has specific timing language. Educational information only.
Official sources
New Mexico CourtsLandlord-Tenant — Uniform Owner-Resident Relations Act ↗
Current official New Mexico court guidance identifying the Uniform Owner-Resident Relations Act and landlord-tenant procedures.
New Mexico Regulation and Licensing DepartmentNew Mexico Real Estate License Law & Rules — Owner-Resident Relations ↗Official state publication reproducing NMSA 1978 § 47-8-18, including deposit limits, normal-wear rule, 30-day accounting and remedies.