New Hampshire Security Deposit Laws: 1-Month Cap, Escrow Required, 30-Day Return

New Hampshire combines reasonable deposit caps with a distinctive escrow requirement: all security deposits must be held in a separate, interest-bearing account, protecting tenant money from landlord misuse. With a 30-day return deadline and strict itemization rules, New Hampshire provides robust tenant safeguards through both regulatory structure and financial protection.

The Short Answer

New Hampshire limits deposits to one month’s rent (or $100, whichever is greater) and requires landlords to hold all deposits in a separate escrow account. Deposits must return within 30 days of lease termination with a written itemized statement. Wrongful withholding allows tenants to recover the amount withheld, applicable damages, and potentially attorney’s fees.

Security Deposit Cap

New Hampshire imposes a modest deposit cap:

• One month’s rent, OR
• $100, whichever is greater

This formula protects low-income renters (ensuring the cap isn’t less than $100) while capping deposits for higher-rent units at one month. The cap applies to new leases and renewals, preventing landlords from escalating deposits over time.

The 30-Day Return Deadline

Landlords must return deposits within 30 days of lease termination. The return must include a written itemized statement of any deductions, with each item listed separately by category (rent, damage, cleaning, etc.). A printed or typed list is acceptable; the requirement is that deductions be itemized and in writing.

If no deductions are claimed, the full deposit should be returned with a written statement confirming “no deductions claimed.”

Reference: New Hampshire Revised Statutes Annotated § 540-A:5 through § 540-A:8 and § 540-B

The Escrow Requirement: A Unique New Hampshire Feature

New Hampshire uniquely requires that all security deposits be held in a separate escrow account. Specifically:

• Deposits must be held in a bank, credit union, or other financial institution in a separate account
• The account must be interest-bearing (or the interest must be paid to the tenant annually)
• The account must be clearly identified as an escrow account for tenant deposits
• Landlords cannot commingle deposit funds with their personal or business funds

This escrow requirement protects tenants by ensuring their money is not used as landlord operating capital and cannot be seized by landlord creditors. It is one of New Hampshire’s strongest protections.

What Can a New Hampshire Landlord Legally Deduct?

Landlords may deduct for:

• Unpaid rent, utilities, or lease-specified charges
• Damage beyond normal wear and tear
• Reasonable cleaning costs (documented)
• Repair or replacement of tenant-damaged property
• Lease violation charges (pet fees, etc., if lease permits)
• Any other damages outlined in the lease

Deductions must be itemized and, where applicable, supported by receipts or repair invoices.

What Is Normal Wear and Tear in New Hampshire?

Normal wear and tear includes:

• Light fading or minor marks on paint from normal use
• Small scuffs or dents from furniture or pictures
• Worn carpet pile or light stains from regular use
• Small nail holes in drywall for wall hangings
• Worn cabinet handles or light switch covers from daily use
• Faded window treatments from sunlight
• Minor settling cracks in drywall
• Worn door hinges or handles from normal operation
• Dust or slight discoloration on fixtures from age

Beyond normal wear and tear (deductible):

• Holes in walls or doors
• Permanent carpet stains, burns, or odors
• Broken or non-functional appliances
• Pet damage including urine stains, scratching, or behavioral marks
• Broken windows, locks, doors, or hardware
• Damaged flooring, tile, or fixtures
• Graffiti, vandalism, or intentional damage
• Accumulated dirt, trash, or pest evidence
• Damage from carelessness or misconduct

Penalties for Wrongful Withholding

If a New Hampshire landlord wrongfully withholds a deposit, the tenant can recover:

• The amount wrongfully withheld
• Applicable damages (court-determined, often related to inconvenience or financial hardship)
• Attorney’s fees (courts frequently award these in deposit disputes)

While New Hampshire does not mandate “double damages” like some states, the attorney’s fee provision makes even modest withholding amounts worth contesting in small claims court. Additionally, the escrow requirement itself is enforceable—landlords who fail to maintain escrow accounts may face administrative penalties.

How to Get Your Deposit Back in New Hampshire

1. Request confirmation of escrow account when you sign the lease. The landlord should provide the bank name and account type; this protects you and ensures compliance.
2. Provide a forwarding address in writing when you move out. Email, written note, or certified mail all work; keep proof.
3. Document the unit’s condition with time-stamped photos and video at move-in and move-out, showing all areas clearly.
4. Clean thoroughly before vacating to minimize cleaning deduction claims.
5. Schedule a move-out inspection with the landlord in writing if possible, documenting condition together.
6. Keep copies of your lease, payment records, and move-out correspondence to refute false claims.
7. Mark your 30-day deadline on your calendar. New Hampshire’s timeline is strict.
8. Expect the itemized statement within 30 days. Review every deduction for documentation and reasonableness.
9. Challenge undocumented deductions immediately in writing. New Hampshire law requires itemization; missing receipts or invoices weaken deduction claims.
10. File in small claims court if the deadline passes or if deductions are unreasonable. Bring your lease, move-out photos, correspondence, and the itemized statement. Mention the escrow requirement and attorney’s fee provision in your claim.

Key Statute

New Hampshire Revised Statutes Annotated § 540-A:5 through § 540-A:8 and § 540-B – New Hampshire’s comprehensive security deposit law covering caps, escrow requirements, return deadlines, itemization, and remedies for non-compliance.

Real Situations in New Hampshire

In Manchester, a tenant paid a $1,200 security deposit for a one-bedroom apartment. The landlord informed the tenant (verbally) that the deposit was “in my account at First Bank.” The tenant requested the bank name and account number in writing, as required by RSA 540-A:6, but the landlord never provided the information. When the tenancy ended 18 months later, the landlord returned the deposit but had failed to segregate it in escrow or pay the required annual interest. The tenant sued for the escrow violation plus unpaid interest at the statutory rate (approximately $25 annually). The court awarded the tenant the interest plus the cost of pursuing the claim, deterring future escrow violations.

In Concord, a landlord held a $1,500 deposit from a tenant and claimed deductions for carpet damage and paint. The landlord returned the deposit after 30 days with a statement claiming “$600 for carpet replacement” and “$300 for painting,” but provided no supporting receipts or repair invoices. New Hampshire requires itemization; vague deductions without documentation are invalid. The tenant objected in writing and sued. The court rejected both deductions as insufficiently documented and awarded the tenant the full $900 plus attorney’s fees under RSA 540-A:7.

In Nashua, a tenant vacated an apartment after providing 20 days’ notice (as required in the lease). The landlord returned the deposit within the 20-day window (the statute allows 20 days if the tenant gives proper notice). However, the landlord failed to return the required itemized statement in writing—only a verbal explanation was offered. New Hampshire requires written itemization. The tenant sent a certified letter demanding the written statement within 5 days. The landlord complied, but the delay and lack of initial written documentation exposed the landlord to potential liability if the tenant had pursued a claim.

Common Mistakes New Hampshire Tenants Make

Not requesting the escrow account information in writing at lease signing. New Hampshire’s escrow requirement is a unique protection. Immediately after paying the deposit, send your landlord a certified letter requesting the name of the bank, account number, and account type. If they refuse or claim the deposit is not in escrow, you have grounds to challenge the entire deposit arrangement and potentially recover it plus damages.

Failing to challenge missing itemizations or demands for written documentation. If your landlord returns the deposit with only a verbal explanation, this violates the law. Send a certified letter demanding a written itemization within 5 days. The failure to comply in writing strengthens your legal position if disputes later arise over deduction claims.

Not tracking annual interest or requesting it at lease end. New Hampshire law requires the landlord to pay annual interest on deposits held in escrow accounts. If your deposit is held for one year or longer, verify that you receive interest (either from the account or paid directly by the landlord). If the landlord claims interest was paid from the account but the account didn’t earn interest, request documentation. Missing interest is a separate violation.

Related Guides

• Tenant Rights Guide: Know Your Rights in Every State — the complete hub for tenant protections, eviction laws, and landlord obligations
• New Hampshire Eviction Notice Requirements — what your landlord must do before starting eviction proceedings in New Hampshire
• New Hampshire Small Claims Court — how to sue your landlord for a wrongfully withheld deposit without a lawyer
• New Hampshire Wage Theft Laws — New Hampshire wage laws, overtime rights, and how to recover unpaid wages
• New Hampshire Tenant Rights Guide — complete tenant rights guide for New Hampshire renters

This article is for informational purposes only and does not constitute legal advice. Always verify current rules at the source linked above or consult a licensed New Hampshire attorney. Last reviewed: March 2026.