New Hampshire security deposit laws are detailed under the New Hampshire Revised Statutes Annotated (RSA) §540-A:5 through §540-A:8. These laws provide clear guidelines on how landlords must handle security deposits, ensuring both landlords and tenants are aware of their rights and responsibilities under New Hampshire law. Please note that rules and regulations may vary by municipality.
In New Hampshire, the security deposit amount is capped at one month’s rent or $100, whichever is greater.
Residential landlords must hold security deposits in trust and may not commingle them with the landlord’s personal funds. However, a landlord may commingle all tenant security deposits in a single account held in trust for the tenant at any bank, savings and loan association, or credit union organized under New Hampshire law (N.H. RSA §§ 540-A:6(II)(b)).
A landlord may avoid the requirements above by posting a bond written by a company located in New Hampshire with the clerk of the city or town where the residential premises are located in an amount equivalent to the deposit (N.H. RSA §§ 540-A:6(II)(c)).
At the time of collecting the security deposit, the landlord must provide the tenant with a written statement indicating the location of the security deposit, including the name of the financial institution and the account number where the deposit is held.
Landlords are required to pay interest on security deposits held for one year or longer. The interest must be paid annually, either to the tenant directly or credited to their account. The interest rate is determined by the financial institution where the deposit is held.
Landlords must return the security deposit, along with any accrued interest, within 30 days after the tenant vacates the rental unit. If there are any deductions from the deposit, the landlord must provide an itemized list of deductions within this same 30-day period.
When returning the deposit, landlords must include an itemized list of all deductions made from the security deposit. This list must detail the specific damages or charges that were deducted, along with the corresponding costs.
If the tenant disputes the deductions, they may file an action in small claims court.
New Hampshire landlords may legal deduct costs from the security deposit for:
If a landlord fails to return the security deposit within the required 30-day period, or fails to provide an itemized list of deductions, they may be liable for damages equal to twice the amount of the security deposit. Additionally, the tenant may recover court costs and attorney’s fees.
If a rental property is foreclosed, the new owner must honor the security deposit arrangements made by the previous landlord, including holding the deposit in the same or similar manner and returning it in accordance with the law.
DISCLAIMER: Security deposit laws may vary by county or municipality. The information provided by Build Whale, Inc. is for general informational purposes only and should not be construed as legal advice. It is not a substitute for consultation with a qualified attorney. While we strive to provide accurate and up-to-date information, Build Whale, Inc. makes no guarantees or warranties regarding the accuracy, completeness, or reliability of the information presented.