Security Deposit Demand Letter — New Hampshire

SECURITY DEPOSIT DEMAND LETTER

Pursuant to RSA 540-A:6, 540-A:7, and 540-A:8 — State of New Hampshire

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL

Date: [__/__/____]

To:
[________________________________]
[________________________________]
[________________________________]

Re: FORMAL DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [________________________________]
Rental Property: [________________________________]
Lease Commencement: [__/__/____]
Move-Out / Surrender of Possession: [__/__/____]
Deposit Amount Paid: $[________________________________]

Dear [________________________________]:

This firm represents [________________________________] ("Tenant") concerning your failure to return the security deposit for the above-referenced rental premises in compliance with New Hampshire Revised Statutes Annotated (RSA) Chapter 540-A. This letter constitutes a formal pre-litigation demand.

I. NEW HAMPSHIRE SECURITY DEPOSIT LAW — STATUTORY FRAMEWORK

New Hampshire's security deposit statute is codified at RSA 540-A:5 through 540-A:8. Unlike many states, New Hampshire imposes a uniquely low deposit cap, mandates that deposits be held in trust as the tenant's money in a New Hampshire financial institution, and provides double-damages penalties for noncompliance. The key provisions are as follows:

A. Deposit Cap — RSA 540-A:6, I

A landlord may not demand or receive as a security deposit an amount exceeding one month's rent or $100, whichever is greater. This $100 minimum floor is distinctive to New Hampshire. If you collected a deposit exceeding this statutory cap, that collection itself constitutes a violation.

B. Trust Requirement — Deposit Remains Tenant's Property (RSA 540-A:6, II)

New Hampshire law is explicit: security deposits continue to be the money of the tenant and must be held in trust. Specifically:

☐ The deposit shall not be mingled with the landlord's personal moneys or become an asset of the landlord until RSA 540-A:7 compliance is achieved.

☐ The landlord must hold the deposit in an account at a bank, savings and loan association, or credit union organized under the laws of New Hampshire.

☐ Multiple tenants' deposits may be commingled in a single trust account, but the landlord must then pay each tenant the actual interest earned on the account, allocated proportionately.

☐ If the landlord does not hold the deposit in a New Hampshire financial institution, the landlord must post a surety bond written by a company located in New Hampshire, filed with the clerk of the city or town where the premises are located, in an amount equivalent to the total deposits held.

C. Written Receipt Requirement — RSA 540-A:6, III

At the time of receiving the deposit, the landlord must deliver to the tenant a signed receipt stating:

• The amount of the security deposit
• The place where the deposit will be held (name and address of NH bank/institution)

D. Disclosure Upon Request — RSA 540-A:6, IV

Upon the tenant's request, the landlord must disclose:

• The name of the bank, savings and loan association, or credit union where the deposit is held
• The account number
• The amount on deposit
• The interest rate on the deposit
• Allow the tenant to examine the deposit records

E. 30-Day Return Deadline — RSA 540-A:7

The landlord must return the security deposit, together with any interest due, within 30 days after:

1. Termination of the tenancy; AND
2. Delivery of possession by the tenant (keys returned, premises vacated)

Both conditions must be satisfied before the 30-day clock begins. The deposit must be returned to the tenant's last known address or forwarding address.

F. Itemized Statement of Deductions — RSA 540-A:7

If the landlord withholds any portion of the deposit, the landlord must provide, within the same 30-day period, a written itemized list that:

☐ States with particularity the nature of each repair necessary to correct the damage claimed

☐ Includes satisfactory evidence that the repair has been or will be completed (receipts for materials, labor estimates, bills, or invoices showing actual or estimated cost)

☐ Accompanies whatever portion of the deposit is being returned

G. Permissible Deductions — RSA 540-A:7

A landlord may retain from the deposit only amounts necessary for:

• Unpaid rent
• Damage to the premises beyond normal wear and tear
• The tenant's share of real estate taxes (where the lease so provides)

H. Prohibited Deductions

The following are NOT proper deductions under New Hampshire law:

• Normal wear and tear (gradual deterioration from ordinary use)
• Pre-existing conditions present before the tenancy
• Routine turnover cleaning and repainting
• Damage caused by the landlord's failure to maintain the premises
• Vague or unsupported "general cleaning" or "repair" charges without particularized itemization

II. TENANCY AND DEPOSIT INFORMATION

III. MOVE-OUT CONDITION

Our Client vacated and surrendered possession of the premises on [__/__/____] in the following condition:

☐ Premises were left in substantially the same condition as at move-in, normal wear and tear excepted

☐ Premises were professionally cleaned by [________________________________] on [__/__/____]

☐ All personal property was removed

☐ Client has photographic/video documentation of condition at move-in and move-out

☐ Client requested a joint walk-through inspection — ☐ Conducted ☐ Landlord refused ☐ Not offered

IV. YOUR VIOLATIONS OF RSA 540-A

As of the date of this letter, [____] days have elapsed since our Client vacated and surrendered possession. You have violated New Hampshire law as follows:

☐ Failure to Return Deposit Within 30 Days (RSA 540-A:7): You have failed to return any portion of the security deposit within the mandatory 30-day period.

☐ Failure to Provide Itemized Statement (RSA 540-A:7): You have failed to provide the required written, particularized itemized list of damages with satisfactory evidence of repair costs.

☐ Deposit Exceeds Statutory Cap (RSA 540-A:6, I): The deposit collected ($[________________________________]) exceeds one month's rent or $100, whichever is greater, in violation of the statutory cap.

☐ Failure to Hold Deposit in Trust at NH Bank (RSA 540-A:6, II): You failed to hold the deposit in a trust account at a New Hampshire-chartered bank, savings and loan, or credit union — or failed to post the alternative surety bond.

☐ Failure to Provide Written Receipt (RSA 540-A:6, III): You did not deliver a signed receipt at the time of collection stating the deposit amount and location of the account.

☐ Failure to Disclose Account Information (RSA 540-A:6, IV): Upon our Client's request, you refused or failed to provide the bank name, account number, deposit amount, and interest rate — a violation that also constitutes an unfair or deceptive act under RSA 358-A:2 (New Hampshire Consumer Protection Act).

☐ Improper or Bad-Faith Deductions: You have withheld amounts for items that constitute normal wear and tear or are otherwise impermissible, including:
☐ Minor wall scuffs, nail holes, paint fading
☐ Carpet wear in high-traffic areas
☐ General cleaning charges without particularized receipts
☐ Pre-existing damage documented in move-in records
☐ Other: [________________________________]

V. STATUTORY REMEDIES AND DAMAGES CALCULATION

A. Double-Damages Penalty — RSA 540-A:8

RSA 540-A:8 provides that any landlord who fails to comply with RSA 540-A:6, IV or RSA 540-A:7 shall be liable to the tenant in damages equal to twice the sum of the security deposit plus any interest due, less any lawful deductions for actual damages, unpaid rent, or the tenant's share of real estate taxes.

Important: New Hampshire's penalty is calculated on the full deposit-plus-interest amount, then doubled, then reduced by any legitimate deductions. This structure means the landlord bears the burden of proving deductions are legitimate.

B. Consumer Protection Act Remedies — RSA 358-A

Violations of RSA 540-A:6, I, II, or III are deemed violations of RSA 358-A:2 (the New Hampshire Consumer Protection Act). Under RSA 358-A:10, the tenant may recover:

• Actual damages or $1,000, whichever is greater
• Treble damages for willful or knowing violations
• Reasonable attorney fees and costs (mandatory for prevailing plaintiff)

C. Damages Calculation

D. Unclaimed Deposit Rule — RSA 540-A:8

Note: Under RSA 540-A:8, deposits that remain unclaimed for 6 months after termination become the landlord's property absent fraud — but only if the tenant failed to provide a forwarding address. Our Client provided a forwarding address on [__/__/____], so this safe harbor does not apply.

VI. EVIDENCE IN OUR POSSESSION

☐ Original lease agreement / rental agreement
☐ Receipt (or canceled check / bank record) proving deposit payment
☐ Move-in condition report / checklist
☐ Move-out condition photographs and/or video (date-stamped)
☐ Move-in photographs (date-stamped)
☐ Copy of written notice to vacate
☐ Proof of forwarding address delivery
☐ Professional cleaning receipt(s)
☐ Correspondence with landlord requesting deposit return
☐ Landlord's itemized statement (if any received — deficient)
☐ Records of request for bank/account disclosure under RSA 540-A:6, IV
☐ Witness statements regarding premises condition
☐ Utility final bills confirming occupancy through move-out date
☐ Other: [________________________________]

VII. DEMAND

We hereby demand that within fifteen (15) days of the date of this letter, you:

1. Return the full security deposit of $[________________________________], plus accrued interest;

2. Pay double damages pursuant to RSA 540-A:8 in the amount of $[________________________________]; and

3. Reimburse attorney fees and costs incurred to date in the amount of $[________________________________].

Total amount due: $[________________________________]

Payment shall be by certified check or money order, payable to [________________________________], and delivered to:

[________________________________]
[________________________________]
[________________________________]

VIII. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this demand, we are authorized to:

1. File suit in the New Hampshire Circuit Court — District Division (which handles small claims up to $10,000) or the Superior Court for amounts exceeding $10,000;

2. Seek double damages under RSA 540-A:8, plus treble damages under RSA 358-A:10 for willful CPA violations;

3. Seek attorney fees and costs — mandatory under RSA 358-A:10 for prevailing consumers;

4. Report violations to:
   - New Hampshire Attorney General — Consumer Protection Bureau (33 Capitol Street, Concord, NH 03301; 1-888-468-4454)
   - Local housing authority
   - Better Business Bureau

5. Enforce any judgment through all lawful means, including wage garnishment, bank levy, and liens on real property.

IX. RESERVATION OF RIGHTS

This letter is without prejudice to any and all rights and remedies available to our Client under RSA 540-A, RSA 358-A, and any other applicable law, all of which are expressly reserved. Nothing herein constitutes a waiver of any claim, defense, or right.

Respectfully submitted,

[________________________________]

By: _________________________________
[________________________________], Esq.
New Hampshire Bar No. [____]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

Counsel for [________________________________]

ENCLOSURES:
☐ Copy of lease agreement
☐ Copy of deposit payment receipt / canceled check
☐ Move-in / move-out photographs
☐ Copy of notice to vacate
☐ Copy of forwarding address notification
☐ Landlord's itemization (if received)
☐ Professional cleaning receipts
☐ Authorization to represent

cc:
[________________________________] (Tenant)
[________________________________] (Property Management Company, if applicable)
[________________________________] (Property Owner, if different from addressee)

NEW HAMPSHIRE SECURITY DEPOSIT — QUICK REFERENCE TABLE

NEW HAMPSHIRE-SPECIFIC NOTES

☐ $100 Minimum Deposit Cap: New Hampshire's cap of one month's rent or $100 (whichever is greater) means that for very low-rent units, the cap can be as little as $100. This is one of the most restrictive deposit caps in the nation.

☐ Deposit Is Tenant's Money: Unlike most states where the deposit merely must be held separately, RSA 540-A:6, II explicitly provides that the deposit continues to be the money of the tenant and is held in trust — not just in a separate account.

☐ NH-Chartered Institution Required: The deposit must be held at a bank, savings and loan, or credit union organized under the laws of New Hampshire — not merely any FDIC-insured institution. Out-of-state banks do not satisfy this requirement unless the landlord posts the surety bond alternative.

☐ Surety Bond Must Be Filed with Town/City Clerk: If the landlord does not use an NH bank, the bond must be posted with the clerk of the municipality where the property is located, written by a NH-based bonding company.

☐ Consumer Protection Act Overlay: Violations of the receipt, trust, and cap provisions (RSA 540-A:6, I-III) are automatically deemed unfair or deceptive practices under RSA 358-A:2. This is significant because the CPA provides treble damages for willful violations and mandatory attorney fees for prevailing consumers — remedies above and beyond the double-damages penalty of RSA 540-A:8.

☐ Six-Month Unclaimed Rule: Deposits unclaimed for 6 months become the landlord's property only if the tenant failed to provide a forwarding address. Practitioners should ensure the client provides a forwarding address in writing at or before move-out.

☐ No State Income Tax / No State Sales Tax: New Hampshire is one of only two states (along with Alaska among those with neither) that imposes neither a state income tax on wages nor a general sales tax. This means damage awards are not reduced by state income tax, and there are no sales tax implications for repair cost calculations.

☐ Circuit Court — District Division: Security deposit claims up to $10,000 are heard in the NH Circuit Court — District Division (formerly District Court). Filing fees are modest. Pro se representation is permitted.

☐ 3-Year Statute of Limitations: Most civil actions in New Hampshire must be filed within 3 years (RSA 508:4), which is shorter than the 4- to 6-year periods common in other states. Prompt action is critical.

Sources and References

• RSA 540-A:5 through 540-A:8 — NH General Court RSA
• RSA 358-A (Consumer Protection Act) — NH General Court RSA
• NH Law Library — Security Deposits — NH Courts LibGuide
• NH Circuit Court — District Division Filing Information — NH Courts
• NH Attorney General — Consumer Protection Bureau — NH DOJ

This template is for informational purposes only and does not constitute legal advice. Security deposit laws may change; verify current requirements with a licensed New Hampshire attorney. Last updated: April 2026.