Overview
New Hampshire security deposit laws are governed by RSA 540-A. New Hampshire has a one-month deposit cap (or $100, whichever is greater), requires interest for tenancies over one year, and mandates written receipts with specific banking information. Using security deposit management software helps track these interest obligations automatically.
Maximum Security Deposit
Under RSA 540-A:6, landlords may not demand or receive a security deposit in excess of one month's rent or $100, whichever is greater.
- The cap applies to the security deposit only
- Pet deposits or additional fees may be charged separately
- Last month's rent is considered separate from the security deposit
Shared Facilities Exception
If the landlord lives on the premises and shares common facilities with the tenant, the landlord may charge a higher deposit if agreed upon in writing.
Return Timeline
Landlords must return the security deposit within 30 days after the tenant vacates and returns possession of the premises.
- Must include an itemized list of any deductions
- The remaining balance must be mailed to the tenant's last known address
- If tenant doesn't provide forwarding address, landlord should use best efforts to locate tenant
Interest Requirements
New Hampshire has conditional interest requirements based on the length of tenancy: (Maine has similar provisions—see Maine security deposit laws.)
- For tenancies lasting one year or longer, landlords must pay interest on the security deposit
- Interest must be paid at the rate of interest paid on regular savings accounts by the New Hampshire bank where the deposit is held
- Interest must be paid annually on the anniversary of the tenancy
Storage Requirements
Security deposits must be held in a bank, savings and loan association, or credit union in New Hampshire. The landlord must provide a written receipt showing:
- The amount of the deposit
- The name and address of the banking institution where the deposit is held
Allowable Deductions
Landlords may deduct from the security deposit for:
- Unpaid rent
- Damages beyond normal wear and tear
- Unpaid utility charges that were the tenant's responsibility
- Other lease violations that caused financial loss
Important: Normal wear and tear cannot be charged to the tenant. This includes minor scuffs, fading, and age-related deterioration.
Penalties for Non-Compliance
If a landlord fails to comply with New Hampshire security deposit laws:
- The tenant may recover the full amount of the deposit wrongfully withheld
- Plus actual damages
- Plus reasonable attorney's fees
- If the landlord willfully fails to comply, the court may award punitive damages
Common Compliance Questions
What counts as "normal wear and tear"?
Normal wear and tear includes minor scuffs on walls, slightly worn carpet in high-traffic areas, small nail holes from hanging pictures, and faded paint from sunlight. It does not include large holes in walls, stained or burned carpet, broken fixtures, or damage from pets. When in doubt, document the condition at move-in with dated photos.
How should I document the unit's condition?
Complete a detailed move-in checklist with the tenant, noting existing damage, appliance conditions, and overall cleanliness. Take timestamped photos or video of every room. At move-out, repeat the process. This documentation protects both parties and makes deduction decisions defensible if disputed. See how Passive works to simplify move-in and move-out inspections.
Can I deduct for unpaid utility bills?
Only if your lease specifically allows it and the utilities are in your name. If utilities are in the tenant's name, contact the utility company directly—they have their own collection processes. Never make unauthorized deductions, even for amounts you believe the tenant owes.