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New
Mexico Security Deposits
The landlord may require the tenant to pay a security or
damage deposit before moving in. This is money to be held by the
landlord during the tenancy to protect against losses from unpaid
rent or damage to the property (normal wear and tear excepted).
A
New Mexico landlord cannot charge a New Mexico tenant more than one month’s rent as a
deposit on any rental agreement of less than a year. If the rental
agreement is for a year or more, the landlord may collect a
deposit of more than one month’s rent; however, if he or she
does so, he or she must pay the tenant current passbook interest
on the whole deposit.
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To
avoid disputes at the end of the tenancy, the landlord and the
tenant should, at the move-in, inventory the furnishings and
condition of the unit, and co-sign such a list. An
example
form is located here
on RentLaw.com
The
tenant may not use the deposit to cover the last month’s rent,
although the landlord may apply it toward unpaid rent. A deposit,
by definition, is refundable. The landlord must have suffered
actual losses in order to withhold any part of the deposit.
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The
landlord has 30 days from the end of the tenancy in which to
return the deposit or an itemized list of deductions plus any
balance remaining from the deposit. The tenant must provide a
forwarding address where he or she may receive this accounting.
If
a landlord does not send an itemized statement and deposit balance
to the tenant within 30 days of the date the rental agreement is
terminated or the tenant moves out, whichever is later, the
landlord forfeits all rights to any of the deposit and to take
further legal action against the tenant in a court of a law. Thus,
even if the tenant has incurred $10,000 in damages, the landlord
loses the right to claim the damage if he or she has not acted
within the 30 days. If the landlord fails to provide an itemized
statement and return the balance of the deposit within the
required time, the tenant may sue the landlord to recover the
entire deposit, plus attorney’s fees and court costs, and in
some cases, civil penalty in the amount of $250. As noted above,
the tenant is required to leave the landlord a forwarding address.
If the tenant fails to do so, the landlord must send the balance
of the deposit and itemized statement to the tenant’s last known
address.
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