SECURITY DEPOSIT DEMAND LETTER
STATE OF NEW MEXICO
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL
[DATE]
[LANDLORD/PROPERTY MANAGER NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]
Re: DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [RENTAL ADDRESS]
Lease Start Date: [DATE]
Move-Out Date: [DATE]
Security Deposit Amount: $[AMOUNT]
Dear [LANDLORD/PROPERTY MANAGER NAME]:
This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to return the security deposit for the above-referenced rental property in accordance with New Mexico law. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable damages and interest.
I. NEW MEXICO LEGAL FRAMEWORK
A. Governing Law
Security deposits in New Mexico are governed by the New Mexico Uniform Owner-Resident Relations Act, NMSA Section 47-8-18.
B. Security Deposit Limits
Under NMSA Section 47-8-18(A), for leases of one year or less, a landlord may not demand or receive a security deposit in excess of one month's rent. For leases greater than one year, there is no statutory limit. If you collected a deposit exceeding the applicable limit, you have violated New Mexico law.
C. Return Deadline
Pursuant to NMSA Section 47-8-18(D), a landlord must return the security deposit within thirty (30) days after:
1. Termination of the tenancy; AND
2. Delivery of possession by the tenant
The deposit must be returned with an itemized statement accounting for any amounts withheld.
D. Interest Requirements
Under NMSA Section 47-8-18(B), if the landlord holds the security deposit for more than one year:
- The landlord must pay annual interest at the prevailing rate
- Interest accrues from the date the deposit is received
E. Permissible Deductions
Under NMSA Section 47-8-18(C), a landlord may retain from the security deposit only amounts necessary to:
- Pay unpaid rent
- Compensate for damages beyond ordinary wear and tear
- Pay other charges specified in the rental agreement
F. Prohibited Deductions
The landlord may NOT deduct for:
- Ordinary wear and tear
- Conditions existing prior to tenant's occupancy
- Conditions resulting from landlord's failure to maintain premises
- Routine cleaning and repainting between tenancies
II. FACTUAL BACKGROUND
A. Tenancy Information
| Item | Details |
|---|---|
| Tenant Name(s) | [FULL NAME(S) OF ALL TENANTS] |
| Property Address | [COMPLETE ADDRESS] |
| Lease Commencement | [DATE] |
| Lease Expiration/Move-Out | [DATE] |
| Monthly Rent | $[AMOUNT] |
| Security Deposit Paid | $[AMOUNT] |
| Date Deposit Paid | [DATE] |
| Pet Deposit (if applicable) | $[AMOUNT] |
| Total Deposits Paid | $[TOTAL] |
B. Move-Out Circumstances
Notice Provided:
- Date Notice Given: [DATE]
- Notice Period: [NUMBER] days
- Method of Delivery: [ ] Hand-delivered [ ] Certified mail [ ] Email
Move-Out Details:
- Date Keys Returned: [DATE]
- Forwarding Address Provided: [ ] Yes [ ] No
- Date Forwarding Address Provided: [DATE]
- Move-Out Inspection: [ ] Requested [ ] Conducted [ ] Refused by Landlord [ ] Not offered
C. Condition of Premises at Move-Out
Our Client left the premises in the following condition:
[ ] Clean and in good repair - The premises were left in substantially the same condition as when our Client took possession, reasonable wear and tear excepted.
[ ] Professionally cleaned - Our Client hired [CLEANING COMPANY NAME] to professionally clean the premises on [DATE].
[ ] All personal property removed - All of our Client's personal belongings were removed from the premises.
[ ] No damage beyond ordinary wear and tear - Any changes to the premises were the result of normal, expected use during the tenancy.
[ ] Move-in/Move-out photos - Our Client has photographic documentation of the condition of the premises at both move-in and move-out.
III. LANDLORD'S VIOLATIONS
You have violated New Mexico law in the following ways:
[ ] Failure to Return Deposit: You have failed to return any portion of the security deposit within the statutory 30-day period required under NMSA Section 47-8-18(D).
[ ] Failure to Provide Itemization: You have failed to provide a written, itemized statement of deductions within the statutory period.
[ ] Excessive Security Deposit: You collected a security deposit exceeding one month's rent in violation of NMSA Section 47-8-18(A).
[ ] Failure to Pay Interest: You failed to pay accrued interest on the deposit as required by NMSA Section 47-8-18(B).
[ ] Improper Deductions: You have made deductions that are not permitted by law, including:
- [ ] Deductions for ordinary wear and tear
- [ ] Deductions for pre-existing conditions
- [ ] Deductions exceeding actual cost of repairs
- [ ] Other improper deductions: [SPECIFY]
[ ] Bad Faith Retention: You have retained the deposit in bad faith, as evidenced by: [DESCRIBE EVIDENCE OF BAD FAITH]
IV. ORDINARY WEAR AND TEAR
New Mexico law distinguishes between "damage" for which a tenant may be charged and "ordinary wear and tear" for which a tenant may not be charged. Ordinary wear and tear includes deterioration that results from the intended use of the premises and ordinary operation of natural forces over time.
The following items, if deducted, constitute ordinary wear and tear and are NOT permissible deductions:
[ ] Minor scuff marks on walls from furniture
[ ] Small nail holes from hanging pictures
[ ] Worn carpet in traffic areas
[ ] Faded paint or wallpaper
[ ] Minor scratches on hardwood floors
[ ] Worn finish on bathroom fixtures
[ ] Slightly dirty mini-blinds
[ ] Dust or minor dirt requiring standard turnover cleaning
[ ] Worn door handles or locks
[ ] Other: [SPECIFY]
V. DAMAGES AND REMEDIES
A. Return of Security Deposit and Interest
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Pet Deposit | $[AMOUNT] |
| Other Deposits | $[AMOUNT] |
| Accrued Interest | $[AMOUNT] |
| Total Deposits and Interest Due | $[AMOUNT] |
B. Statutory Remedies
Under NMSA Section 47-8-18, if a landlord fails to comply with the security deposit requirements:
- The tenant may recover the full security deposit
- The tenant may recover accrued interest
- The tenant may recover actual damages
C. Attorney's Fees and Costs
Attorney's fees may be recoverable under general contract principles or as provided in the lease agreement.
D. Total Demand
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Other Deposits | $[AMOUNT] |
| Accrued Interest | $[AMOUNT] |
| Attorney's Fees to Date | $[AMOUNT] |
| TOTAL DEMAND | $[AMOUNT] |
VI. EVIDENCE IN OUR POSSESSION
Our Client has preserved the following evidence to support this claim:
[ ] Original lease agreement
[ ] Receipt or cancelled check for security deposit payment
[ ] Move-in inspection report/checklist
[ ] Move-out inspection report/checklist (if conducted)
[ ] Photographs of premises at move-in (dated)
[ ] Photographs of premises at move-out (dated)
[ ] Video walkthrough at move-out
[ ] Copy of written notice to vacate
[ ] Proof of delivery of notice and forwarding address
[ ] Receipts for professional cleaning
[ ] Correspondence with landlord regarding deposit
[ ] Landlord's itemized statement (if provided)
[ ] Witness statements regarding condition of premises
[ ] Utility final bills showing service through move-out date
[ ] Other: [SPECIFY]
VII. DEMAND
We hereby demand that you take the following actions within fourteen (14) days of the date of this letter:
-
Return of Deposit and Interest: Pay to our Client the full amount of the security deposit plus accrued interest: $[AMOUNT]
-
Total Payment: The total amount due is $[TOTAL AMOUNT]
Payment should be made by certified check or money order, payable to [TENANT NAME], and sent to:
[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]
Reference: [TENANT NAME] Security Deposit
VIII. CONSEQUENCES OF NON-COMPLIANCE
If you fail to comply with this demand within the time specified, we are authorized and prepared to:
-
File Suit: Commence legal action in New Mexico Metropolitan Court or Magistrate Court (for claims up to $10,000) or District Court for return of the deposit, interest, damages, and costs.
-
Seek Full Deposit and Interest: Request the court award the full deposit plus accrued interest.
-
Report Violations: Report your conduct to:
- New Mexico Attorney General - Consumer Protection Division
- Local Housing Authority
- Better Business Bureau -
Judgment Enforcement: Upon obtaining judgment, pursue all legal means of collection, including garnishment, levy, and lien on property.
IX. RESPONSE REQUESTED
Please respond to this demand in writing within fourteen (14) days. Your response should include:
- Your position on the amount owed to our Client
- Any documentation supporting claimed deductions
- Payment or a good-faith settlement offer
If we do not receive a satisfactory response, we will file suit without further notice.
X. RESERVATION OF RIGHTS
This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent negotiations.
Respectfully submitted,
[LAW FIRM NAME]
By: _________________________________
[ATTORNEY NAME]
[NEW MEXICO BAR NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]
Attorneys for [TENANT FULL NAME]
ENCLOSURES:
[ ] Copy of lease agreement
[ ] Copy of security deposit receipt
[ ] Move-in/move-out photographs
[ ] Copy of notice to vacate
[ ] Copy of forwarding address notification
[ ] Copy of landlord's itemization (if any)
[ ] Cleaning receipts
[ ] Authorization to represent
cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]
NEW MEXICO SECURITY DEPOSIT QUICK REFERENCE
| Element | New Mexico Requirement |
|---|---|
| Governing Statute | NMSA Section 47-8-18 |
| Deposit Limit | 1 month (lease <= 1 year); no limit (lease > 1 year) |
| Return Deadline | 30 days |
| Itemization Required | Yes |
| Receipt Required | No |
| Interest Required | Yes (deposits held > 1 year) |
| Separate Account Required | No |
| Penalty for Violation | Actual damages |
| Attorney's Fees | Per contract or general principles |
| Small Claims Limit | $10,000 |
NEW MEXICO-SPECIFIC PRACTICE NOTES
[ ] 30-Day Deadline: New Mexico requires return of the deposit with itemization within 30 days.
[ ] Interest Requirement: For deposits held more than one year, landlord must pay interest at the prevailing rate.
[ ] Lease Term Matters: The one-month deposit limit only applies to leases of one year or less. Longer leases have no statutory limit.
[ ] No Statutory Multiplier: New Mexico does not provide for double or treble damages, making documentation critical.
[ ] Metropolitan/Magistrate Court: New Mexico's small claims limit is $10,000.
[ ] Albuquerque/Santa Fe: Major cities may have additional local requirements. Check local ordinances.
[ ] Forwarding Address: Tenant should provide forwarding address in writing.
[ ] "Ordinary" vs "Normal": New Mexico uses the term "ordinary wear and tear" rather than "normal wear and tear."
This template is for informational purposes only and does not constitute legal advice. Security deposit laws may vary by locality. Consult a licensed New Mexico attorney before use.