New Hampshire security deposit laws: a cap, trust holding, interest after a year and 30 days to return
RSA 540-A:6 caps a New Hampshire deposit at one month's rent or $100, whichever is greater, and requires it to be held in trust. RSA 540-A:7 sets the return: within 30 days from the termination of the tenancy, with a written itemized list of damages and satisfactory evidence of the repair.
What is the cap, and what must the tenant get?
A landlord may not demand or receive a deposit above one month's rent or $100, whichever is greater. For leases requiring quarterly or less frequent rent, the deposit collected beyond the initial rent payment cannot exceed one month's rent. The landlord gives a signed receipt stating the amount and where the deposit is held, unless the tenant pays by personal, bank or agency check. Either way, the landlord gives written notice that repair conditions should be reported within 5 days of occupancy.
How must the deposit be held?
It remains the tenant's money and is held in trust. It cannot be mixed with the landlord's personal funds until RSA 540-A:7 is complied with. Landlords may pool deposits in one trust account at a New Hampshire bank, savings and loan or credit union, and a bond from a New Hampshire company filed with the local clerk can exempt a landlord from these holding requirements.
When the property is sold or the lease is assigned, the landlord must transfer the deposit within 5 days and notify the tenant by registered or certified mail.
Does interest accrue?
Deposits held for one year or longer earn interest at the rate paid on regular savings accounts at the holding institution. For pooled accounts, the landlord pays tenants their proportional share of actual earnings. Tenants may request accrued interest every three years, 30 days before the tenancy year ends, and the landlord must comply within 15 days. On request, the landlord must disclose the bank details and balance and let the tenant examine deposit records.
Example a made-up landlord in Manchester holds a $1,300 deposit in a pooled trust account for four years. A tenant asks in writing for accrued interest 30 days before the tenancy year ends. The landlord pays the tenant's share of actual earnings within 15 days.
What does RSA 540-A:7 require at move-out?
The landlord returns the deposit, plus any interest due, within 30 days from the termination of the tenancy. Deductions may cover repair costs for damage beyond reasonable wear and tear, which require a written, itemized list describing the repair needed and satisfactory evidence that the repair was or will be done, such as receipts, labor estimates or invoices. The landlord may also deduct unpaid rent, the tenant's lease-required share of real estate taxes or other lawful unpaid charges, with a written, itemized list showing the period each claim covers.
The pages I read do not state penalties for late return or improper withholding, so I do not describe any. A New Hampshire attorney can point to the remedies section.
Common New Hampshire slips
Three mistakes recur. Owners forget the five-day repair notice: a tenant who is told to report conditions within five days of occupancy has a clear moment to do so, and an owner who skipped the notice has less to point to. Owners also mix deposits into an operating account, which the trust rule forbids unless the statute's conditions are met. And owners list repairs without evidence. The itemized list must describe the repair needed and give satisfactory evidence that the repair was or will be done, so attach the estimate or invoice to each line. Finally, keep interest records, because a request after a year or more of tenancy needs an answer within 15 days.
How DoorKeeping fits in New Hampshire
DoorKeeping records each New Hampshire deposit against the lease, counts down to the return deadline and drafts the itemized statement for you to approve. Repair estimates and invoices attach to each deduction, which is the satisfactory evidence the statute asks for. This is general information, not legal advice. Check the current statute and your lease before you act.
Sources
Questions
- What is the maximum New Hampshire security deposit?
- One month's rent or $100, whichever is greater, under RSA 540-A:6.
- How long does a New Hampshire landlord have to return a deposit?
- Within 30 days from the termination of the tenancy, with any interest due (RSA 540-A:7).
- Does a New Hampshire deposit earn interest?
- Deposits held for one year or longer earn interest at the regular savings account rate at the holding institution, or a proportional share of actual earnings in a pooled account.