New Hampshire security deposit law caps deposits at one month’s rent (or $100, whichever is greater), requires landlords to hold the money in trust at a New Hampshire financial institution, and gives them 30 days after the tenancy ends to return it along with an itemized list of any deductions. A landlord who misses the deadline or withholds money for normal wear and tear can be liable for damages equal to twice the deposit, minus any legitimate charges. The rules live mainly in RSA 540-A:6, 540-A:7, and 540-A:8, and knowing how they fit together puts you in a strong position if a dispute comes up.
How Much a Landlord Can Charge
Under RSA 540-A:6, no landlord can demand a security deposit worth more than one month’s rent or $100, whichever is greater.1New Hampshire General Court. New Hampshire Revised Statutes Section 540-A:6 – Procedure For most rentals, one month’s rent is the practical ceiling. That ceiling covers every deposit combined. A landlord cannot charge one month’s rent as a security deposit and then tack on a separate “pet deposit” that pushes the total over the cap.
If the rent goes up during your tenancy, your landlord can ask you to top up the deposit so it matches the new monthly amount. Rent moving from $1,200 to $1,300 would let the landlord request another $100.2603 Legal Aid. Security Deposits Outside of a rent change, though, the landlord cannot demand more deposit money mid-lease.
Non-Refundable Fees Are Not Allowed
Every deposit in New Hampshire has to be refundable. A landlord cannot collect a non-refundable “cleaning fee,” “move-in fee,” or “pet fee” and treat it as something outside the security deposit rules. Whatever the label, money collected to cover potential damage or cleaning is a security deposit under state law, and you are entitled to get back whatever portion is not legitimately owed at the end of the lease. If a landlord tries to charge a non-refundable fee on top of your deposit, push back.
How Your Deposit Must Be Held
The deposit remains your property while the landlord holds it. RSA 540-A:6 requires the landlord to keep it in trust and forbids commingling it with personal funds or treating it as a business asset.1New Hampshire General Court. New Hampshire Revised Statutes Section 540-A:6 – Procedure The money must sit in an account at a New Hampshire bank, savings and loan association, or credit union. A landlord with multiple units can pool tenants’ deposits into a single trust account, but the landlord’s own funds still have to stay separate.
You can ask for the name of the institution, the account number, the amount on deposit, and the interest rate. The landlord also has to let you examine the deposit records on request.1New Hampshire General Court. New Hampshire Revised Statutes Section 540-A:6 – Procedure A refusal to provide that information can work in your favor later if the dispute lands in court.
Interest on Your Deposit
Once a landlord has held your deposit for a year or longer, interest is owed at the rate the bank pays on regular savings at the institution where the money is held.1New Hampshire General Court. New Hampshire Revised Statutes Section 540-A:6 – Procedure Savings rates are modest, so the dollar figure may be small, but it is still your money and must be included when the deposit is returned.
When the Property Is Sold
If the rental is sold, your landlord has five days from delivery of the deed to transfer your deposit to the new owner and must notify you by certified or registered mail with the new owner’s name and address. From that point, the new owner is responsible for your deposit under the same rules.1New Hampshire General Court. New Hampshire Revised Statutes Section 540-A:6 – Procedure
What Landlords Can Deduct
RSA 540-A:7 limits deductions to three categories: damage beyond normal wear and tear, unpaid rent, and, if the lease requires you to cover part of a real estate tax increase, your unpaid share of those taxes.3New Hampshire General Court. New Hampshire Revised Statutes Section 540-A:7 – Return of Security Deposit That third category only applies when the lease specifically includes a tax-sharing provision.
Normal wear and tear cannot be charged against you. Carpet worn from everyday foot traffic, paint that has faded over a few years, and minor wall scuffs are the landlord’s cost of doing business. Deductions are appropriate for holes punched in drywall, a broken window, or missing fixtures — damage that goes beyond ordinary living.
Cleaning is a gray area. A landlord can deduct cleaning costs if you leave the unit in genuinely bad shape: garbage left behind, grease-caked appliances, pet stains. Routine cleaning between tenants is not chargeable. The rough standard is whether the unit came back in the condition you found it, minus normal use.
Every deduction has to be documented. The statute requires a written, itemized list describing each repair, with supporting evidence such as receipts, material invoices, or labor estimates.3New Hampshire General Court. New Hampshire Revised Statutes Section 540-A:7 – Return of Security Deposit A vague entry like “general repairs — $400” does not meet the standard, and you have grounds to challenge it.
The 30-Day Return Deadline
Your landlord has 30 days after the tenancy ends to either return the full deposit with any interest owed or send you the remaining balance along with the itemized deduction list.3New Hampshire General Court. New Hampshire Revised Statutes Section 540-A:7 – Return of Security Deposit The clock starts when the tenancy terminates, not when the landlord gets around to inspecting. Slow repairs or slow inspections do not buy extra time.
Missing the deadline is expensive. Under RSA 540-A:8, a landlord who fails to comply is liable for damages equal to twice the deposit plus accrued interest, minus any amounts the landlord was legitimately entitled to deduct.4New Hampshire General Court. New Hampshire Revised Statutes Section 540-A:8 – Remedies Even a landlord with valid deductions can end up owing far more than a timely return would have cost.
Give the Landlord a Forwarding Address
This is the single biggest mistake tenants make, and it can undo an otherwise strong claim. Under RSA 540-A:8, a landlord is not liable for failing to return the deposit if the tenant never provided a new address after moving out.4New Hampshire General Court. New Hampshire Revised Statutes Section 540-A:8 – Remedies Without an address, you lose the right to the penalty damages and potentially the deposit itself.
Worse, a deposit that goes unclaimed for six months after the tenancy ends becomes the landlord’s property outright, as long as no fraud was involved.4New Hampshire General Court. New Hampshire Revised Statutes Section 540-A:8 – Remedies The fix is easy. Give your forwarding address in writing (email, text, or letter) before or immediately after you move out, and keep a copy.
Penalties for Landlord Violations
The penalties split along two tracks depending on which part of the law the landlord breaks.
Violations of the deposit-handling rules, such as collecting more than allowed, failing to hold the deposit in trust, or not transferring it when the property is sold, are treated as unfair trade practices under RSA 358-A:2.4New Hampshire General Court. New Hampshire Revised Statutes Section 540-A:8 – Remedies That opens the door to broader consumer-protection remedies, including possible action by the New Hampshire Attorney General’s office.
Violations of the return and interest requirements, such as missing the 30-day deadline, failing to itemize deductions, or skipping owed interest, carry damages of twice the deposit plus interest, reduced by any amounts the landlord was legitimately owed for damage, unpaid rent, or a tax share.4New Hampshire General Court. New Hampshire Revised Statutes Section 540-A:8 – Remedies
How to Dispute Wrongful Deductions
Start with a written demand letter. Send it by certified mail, reference RSA 540-A:7, describe what you believe was wrongfully withheld, and give a clear deadline (10 to 14 days is reasonable) for returning the money.2603 Legal Aid. Security Deposits Many disputes end here, because landlords who understand the penalty structure would rather return the deposit than face double damages.
If the letter does not work, small claims court is next. New Hampshire’s small claims system handles cases up to $10,000, which covers most deposit disputes even after double damages are factored in.5New Hampshire General Court. New Hampshire Code 503:1 – Small Claim Defined Filing fees are $125 for claims of $5,000 or less and $180 for claims between $5,001 and $10,000.6New Hampshire Judicial Branch. Circuit Court Filing Fees
Bring everything you have. Photographs of the unit at move-in and move-out, your lease, rent payment records, the landlord’s itemized deduction list (or proof none was sent), and any correspondence. Clear documentation almost always decides the outcome.
Document the Unit Before Moving In
New Hampshire does not require landlords to conduct a formal move-in inspection or hand you a condition checklist. Protecting yourself is on you. Before you unpack, photograph every room, every appliance, every surface, and especially anything that is already damaged. Date-stamped phone photos work fine. Email them to yourself and to your landlord so both of you have a record.
Do the same on the way out. Walk the unit once it is cleaned and emptied, take photos from the same angles, and note the condition of anything that was already damaged when you moved in. If a landlord later tries to deduct for a dent in the refrigerator that was there on day one, timestamped photos win that argument. Without them, deposit disputes often come down to the landlord’s word against yours, and the landlord has the money.