Security deposits in New Hampshire are regulated by New Hampshire Revised Statutes § 358-A and § 540-A. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

Maximum Security Deposit

New Hampshire state law limits security deposits to the greater of one month’s rent or $100.

Holding & Interest Requirement

Holding Requirements: The security deposit must be held in a federally regulated financial institution (bank, savings and loan association, or credit union) and kept separate from the landlord/property manager’s personal funds. Alternatively, landlords/property managers may obtain a bond written by a surety company located in New Hampshire and post the bond with the clerk of the city in which the rental unit is located.

‍Interest on Deposits: If the landlord/property manager holds the security deposit for 1 year or longer, they must pay interest to the tenant at the interest rate for regular savings accounts in the financial institution where the security deposit is being held. Upon the tenant’s request, the landlord/property manager must provide the tenant with the name of the financial institution where the security deposit is held, the account number, the amount on deposit, and the interest rate, and must allow the tenant to examine their security deposit records.

Information Provided to Tenant: Upon receipt of the security deposit, the landlord/property manager must provide the tenant with a signed receipt stating the amount of the security deposit, the place where the security deposit (or bond) will be held, and notify the tenant that they must inform their landlord/property manager of any conditions at the rental unit in need of repair within 5 days of occupancy.

Deposit Refunds

Timeline: Within 30 days after the tenant vacates the property, the landlord/property manager must either (1) return the full security deposit and accrued interest, or (2) provide the tenant with a written itemized list of any deductions to the security deposit together with the portion of the security deposit and accrued interest being returned.

Permissible Deductions: Landlords/property managers may deduct the following from security deposit funds:

• Unpaid rent
• Damages beyond normal wear and tear
• Tenant's share of an increase in property taxes, if required under the lease
• Other lawful charges due under the lease

Documentation of Deductions: The written itemized list of deductions to the security deposit must explain the repairs needed to correct any damage to the rental unit and include evidence that the repairs have or will be completed. Satisfactory evidence includes receipts for purchased materials/labor and invoices indicating the actual or estimated cost of repair.

‍Penalties for Violations: Failure to return the security deposit or provide the itemized written list of deductions as required by New Hampshire state law may result in the landlord/property manager being liable for up to 2x the security deposit and interest due, plus attorney’s fees and court costs if the tenant wins in a lawsuit. The landlord/property manager is not liable and will not be subject to such penalties if the tenant does not provide a forwarding address. A landlord/property manager’s failure to comply with the security deposit cap, deposit receipt, holding, or interest requirements is also considered a violation of the New Hampshire Consumer Protection Act.

Sale of the Rental Property

If the property is sold, the landlord/property manager must transfer the security deposit to the new owner within 5 days of delivering the deed and notify the tenant by registered or certified mail of the transfer. Such notice must include the name and address of the new owner.