A New Hampshire tenant moves out on June 1.

The security deposit is $1,200. During the final inspection, the property manager finds $900 in damage. The manager returns the remaining $300 on June 25 and considers the file closed.

The money was returned within 30 days. But the accounting may still have a problem.

When a New Hampshire landlord makes a deduction for damage, the law requires more than simply sending back the unused balance. The landlord must provide a written, itemized statement identifying the damage and must provide satisfactory evidence that the necessary repair has been or will be completed.

That example captures an important point about New Hampshire security deposit laws: compliance does not begin at move-out. It starts when the deposit is received and continues through the trust-account, interest, condition-documentation and final-accounting stages.

For property managers, the challenge is keeping those stages connected.

This guide explains New Hampshire's security deposit requirements, including the one-month-or-$100 cap, receipt rules, trust-account requirements, interest, permitted deductions, 30-day return deadline and statutory remedies.

Quick Reference: New Hampshire Security Deposits

How Much Can a New Hampshire Landlord Charge?

The starting point is the New Hampshire security deposit limit.

Under RSA 540-A:6(I)(a), a landlord generally cannot demand or receive a security deposit greater than one month's rent or $100, whichever is greater.

For example, if the monthly rent is $1,500, the ordinary maximum security deposit is $1,500.

If the monthly rent is only $75, however, the statutory formula produces a $100 maximum.

The law also addresses situations where a landlord collects money under a different label. RSA 540-A:5(II) defines a security deposit as funds in excess of the monthly rent transferred from the tenant to the landlord for any purpose.

That matters because calling a payment a "move-in fee," "damage fee" or "nonrefundable fee" does not automatically take it outside the security-deposit rules.

For a property manager, the better question is not "What did we call the charge?" but "What is the payment actually being used for?"

What about small landlords?

New Hampshire has an important exception to the security-deposit subdivision.

RSA 540-A:5(I) does not treat a person as a "landlord" under this subdivision when that person rents a single-family residence and owns no other rental property, or rents units in an owner-occupied building containing five units or fewer. There is an exception for an individual unit occupied by a person or persons age 60 or older.

That means a property manager should not assume that every small rental property automatically falls outside the statute.

Before applying the exception, the relevant facts include the owner's other rental property, whether the building is owner-occupied, the number of units and whether the statutory age exception applies.

The Deposit Process Starts When the Money Is Received

The New Hampshire security deposit receipt requirement is one of the first compliance steps.

When a landlord receives a deposit, RSA 540-A:6(I)(b) generally requires a signed receipt stating the amount of the deposit and identifying where the deposit or qualifying bond will be held. The landlord must also notify the tenant that conditions needing repair or correction should be noted on the receipt or provided to the landlord in writing within five days of occupancy.

There is an important exception.

A receipt is not required when the tenant provides the security deposit by personal check, bank check, or a check issued by a government or nonprofit agency on the tenant's behalf. Even then, however, the landlord must still provide the written notice concerning conditions needing repair or correction within five days of occupancy.

That makes the move-in record more important than simply having a signed lease.

A strong file should allow the manager to connect the deposit payment to the tenant, unit, amount received, date received, holding location and move-in condition.

This is where a property-management workflow can make a difference. RIOO's Move Ins & Move Outs can help keep possession dates, inspections, photographs and tenant-reported conditions connected to the unit record.

The goal is simple: when a dispute arises months later, the manager should not have to reconstruct what happened from scattered emails, photographs and payment records.

Where Must a New Hampshire Security Deposit Be Held?

New Hampshire treats a security deposit as the tenant's money while it is being held.

RSA 540-A:6(II)(a) generally requires the deposit to be held in trust and prohibits it from being mingled with the landlord's personal money or becoming the landlord's asset until the statutory return process has been completed.

The law does permit landlords to pool deposits.

Multiple security deposits may be held in a single trust account at a New Hampshire bank, savings and loan association or credit union.

So a pooled account is not itself a compliance problem.

The operational problem comes when the manager cannot determine how much of that pooled balance belongs to each tenant.

A proper deposit ledger should allow the manager to trace each deposit from:

receipt → trust account → interest → deductions → final balance.

That is particularly important when a management company handles deposits for multiple units, properties or owners.

New Hampshire also allows a bond alternative

The statute provides another option. A bond written by a company located in New Hampshire and posted with the clerk of the city or town where the residential premises are located can exempt the landlord from the trust-account requirements in RSA 540-A:6(II)(a) and (b), provided the bond meets the statutory amount requirement.

This is not simply a matter of replacing an account with any commercial bond. The statutory requirements concerning the issuer, amount and filing location need to be satisfied.

When Does New Hampshire Require Interest on a Security Deposit?

New Hampshire is not a state where every residential security deposit can simply sit without an interest obligation.

Under RSA 540-A:6(IV)(a), a landlord who holds a security deposit for one year or longer must pay interest at the rate paid on regular savings accounts by the New Hampshire bank, savings and loan association or credit union where the deposit is held. The interest obligation begins from the date the landlord receives the deposit.

When deposits are pooled, the actual interest earned on the account must be allocated proportionately among the tenants.

The statute also gives tenants a mechanism to request accrued interest every three years, subject to specific timing requirements. A tenant must make the request 30 days before the expiration of that year's tenancy, and the landlord must comply within 15 days after that tenancy year expires.

For managers, this means the deposit ledger needs more than a single balance field.

The system should make it possible to identify when the deposit was received, when the one-year threshold was reached, the applicable interest and any interest payment or request.

RIOO's Collecting Rent & Payments workflow can help keep payment records organized so security-deposit transactions are distinguishable from ordinary rent activity.

What Can a Landlord Deduct From a New Hampshire Security Deposit?

This is where many deposit disputes become documentation disputes.

RSA 540-A:7 allows deductions for damage to the premises beyond reasonable wear and tear. It also allows deductions for unpaid rent, qualifying increases in real-estate taxes and other lawful charges due under the lease.

But different types of deductions have different documentation requirements.

Damage must be tied to a repair

If a landlord claims damage, the written itemized statement must identify with particularity the nature of the repair necessary to correct the damage.

The landlord must also provide satisfactory evidence that the repair has been or will be completed. The statute specifically identifies examples such as receipts for repair materials, labor estimates, bills and invoices showing actual or estimated costs.

That makes this:

Repairs - $600

a weak final accounting.

A much stronger record would look more like:

Bedroom carpet - cigarette burn near window; replacement estimate dated June 12; claimed cost $600.

The point is not to make the description unnecessarily complicated. It is to connect the condition, the repair and the claimed amount.

That is why the move-in inspection matters months later. If the manager has a dated photograph showing the carpet's original condition, a move-out photograph showing the damage and an estimate documenting the replacement cost, the deduction has a much clearer evidentiary trail.

RIOO's Service Request & Task Management can help preserve the maintenance and work-order history supporting a repair-related deduction.

Unpaid rent and other charges are different

RSA 540-A:7(II) separately addresses unpaid rent, qualifying real-estate-tax increases required under the lease and other lawful charges due under the rental agreement. The landlord's written itemized statement must identify the period for which the claim is being made.

So a final accounting should not simply say:

Balance due - $900.

A manager should be able to distinguish the damage claim from the rent or other contractual charge and show the period or transaction supporting each amount.

The 30-Day Return Deadline

The headline rule is straightforward:

New Hampshire landlords generally have 30 days after termination of the tenancy to return the security deposit and interest due, if any.

The important management question is what happens inside those 30 days.

The deadline does not run from the inspection date. It does not begin when a contractor sends an invoice. It does not wait for an owner to approve the deduction.

It runs from termination of the tenancy.

If the landlord is claiming damage, the final accounting needs the required written itemization and satisfactory evidence of the repair.

If the landlord is claiming unpaid rent or another lawful charge, the statement must identify the relevant period.

That makes the final deposit process a coordination exercise between property management, accounting and maintenance.

A manager closing a tenancy should therefore be able to bring together:

• the original deposit;

• interest due;

• move-in and move-out condition records;

• repair documentation;

• unpaid-rent or other lawful-charge records;

• the deductions;

• the remaining balance; and

• proof that the accounting was delivered.

The safest operational approach is to start this process immediately after termination rather than treating day 30 as the day the work begins.

What Happens If the Landlord Violates the Deposit Rules?

New Hampshire does not use one identical penalty for every security-deposit mistake.

RSA 540-A:8 distinguishes between different categories of violations. A landlord who fails to comply with RSA 540-A:6(I), (II) or (III) is deemed to have violated RSA 358-A:2. A failure to comply with RSA 540-A:6(IV) or RSA 540-A:7 can result in damages equal to twice the security deposit plus interest due, less payments made and specified amounts owing for damages, unpaid rent or qualifying real-estate taxes.

That distinction matters.

It would be inaccurate to summarize New Hampshire law simply as:

"Landlords who mishandle a deposit automatically owe double damages."

The actual statutory remedy depends on which requirement was violated.

For a property manager, that is another reason not to treat the final accounting as a routine refund transaction. A missing receipt, improper holding method, failure to pay required interest and defective return accounting can raise different statutory issues.

What If the Tenant Does Not Provide a Forwarding Address?

The law also addresses what happens when the tenant leaves without providing a new address.

Under RSA 540-A:8(II), a landlord is not liable or required to forfeit rights when the failure to comply with the security-deposit provisions is attributable to the tenant's failure to notify the landlord of the tenant's new address after termination.

That does not mean the manager should immediately treat the remaining deposit as income.

The better operational approach is to preserve the balance, retain the final accounting and document reasonable attempts to obtain a forwarding address.

New Hampshire law provides that deposits plus interest that remain unclaimed for six months after termination become the landlord's property, absent fraud.

The six-month provision therefore belongs at the end of the unclaimed-funds process, not at the beginning of it.

What Happens to the Deposit When a Property Is Sold?

A change in ownership does not simply erase the security-deposit record.

RSA 540-A:6(III) requires a landlord holding a deposit to transfer it at the time of delivery of the deed or assignment, or within the statutory five-day period, to the applicable grantee, assignee, receiver or qualifying foreclosure purchaser. The tenant must be notified by registered or certified mail of the transfer and the identity and address of the new holder.

The transferring landlord can be relieved of liability for repayment when the deposit and interest due are properly transferred under the statute. Responsibility then shifts to the transferee, subject to the statute's further-transfer provisions.

For property managers, this means the security-deposit ledger belongs in the closing checklist.

Before a property changes hands, the parties should be able to reconcile the deposits by tenant and unit, interest due, transfer amount, receiving party and tenant notification.

Shared Facilities May Follow Different Rules

Not every residential occupancy should automatically be analyzed under the ordinary RSA 540-A security-deposit framework.

New Hampshire has a separate statutory framework for certain shared-facility occupancies under RSA 540-B:10.

That distinction should not be triggered merely because an apartment building has a shared gym, laundry room, kitchen or other amenity.

The manager first needs to determine whether the occupancy actually falls within the statutory definition of a shared facility. If it does, the deposit amount, written-agreement requirements and return timing may differ from the ordinary RSA 540-A process.

For a specialized housing operation, classification should therefore happen before the standard one-month-cap and 30-day workflow is applied.

The Most Common New Hampshire Security Deposit Mistakes

The most expensive mistakes are often not complicated legal questions. They are process failures.

A manager may collect the correct deposit but fail to create the required receipt record. Another may hold the money correctly but forget to track when the one-year interest obligation begins. Another may return the correct balance but provide an inadequate explanation for a damage deduction.

The recurring problems are:

1. Treating the maximum deposit as exactly one month's rent without accounting for the $100 minimum formula.

2. Assuming a small property automatically qualifies for the statutory landlord exception.

3. Failing to provide the required five-day repair-condition notice.

4. Treating a deposit as ordinary operating money instead of following the trust requirements.

5. Forgetting the interest obligation after one year.

6. Waiting until the end of the 30-day period to assemble the accounting.

7. Sending a vague damage deduction without particularizing the repair.

8. Failing to preserve the evidence supporting the repair cost.

9. Combining unpaid rent, damage and other charges into one unexplained balance.

10. Treating a property sale as a reset instead of transferring and documenting the deposit.

11. Assuming a missing forwarding address immediately gives the landlord ownership of the balance.

12. Applying specialized shared-facility rules without first confirming that the occupancy qualifies.

Build the Deposit File Before There Is a Dispute

A useful way to manage New Hampshire security deposits is to think of the file as a timeline rather than a single transaction.

At move-in, the record should establish what was received and what condition the unit was in.

During the tenancy, it should establish where the money was held and what interest became due.

At move-out, it should establish what changed, what the tenant owed and why each deduction was made.

Finally, the file should establish when the accounting was delivered and what amount was returned.

That is why property-management software can be useful even though it does not determine whether a particular deduction is legally permissible.

RIOO's Tenant 360 View can connect tenant communications, payment history and maintenance activity. Its lease management guidance can also help keep lease obligations and tenant records connected.

The legal decision still belongs to the landlord and, where necessary, New Hampshire counsel. The technology's job is to make the underlying record complete, organized and retrievable.

Conclusion

New Hampshire security-deposit compliance is more than collecting no more than one month's rent and remembering a 30-day deadline.

The process begins when the deposit is received.

The landlord must determine whether the security-deposit rules apply, follow the receipt and five-day notice requirements, hold the deposit correctly, track interest when required, document the condition of the property and support every deduction with the appropriate records.

Then, at the end of the tenancy, the manager has to bring those records together quickly enough to complete the final accounting within the statutory period.

For property managers, the practical sequence is straightforward:

Receive → document → hold → track → inspect → reconcile → return.

When each step is connected, the final deposit accounting becomes much easier to defend if a tenant questions a deduction.

For managers operating across Manchester, Nashua, Concord, Portsmouth and elsewhere in New Hampshire, that lifecycle approach is more reliable than treating security deposits as a simple move-out refund.

This article is for informational purposes only and does not constitute legal advice. New Hampshire's security-deposit rules contain exceptions for certain landlords and specialized occupancies, and other federal, state or local requirements may apply. Confirm the current statutory text and consult a licensed New Hampshire attorney regarding a specific deposit, deduction, property transfer or dispute.

Frequently Asked Questions

Q1. How much can a landlord charge for a security deposit in New Hampshire?
Generally, a New Hampshire landlord cannot demand or receive more than one month's rent or $100, whichever is greater, subject to statutory exceptions

Q2. Does New Hampshire require a security-deposit receipt?
Generally, yes. The landlord must provide a signed receipt stating the amount of the deposit and where it will be held. An exception applies when the deposit is paid by personal check, bank check, or a qualifying government or nonprofit-agency check. The five-day repair-condition notice is still required.

Q3. Where must a New Hampshire security deposit be held?
Security deposits generally remain the tenant's money and must be held in trust. Multiple deposits may be held in a qualifying pooled trust account. A statutory bond alternative is also available.

Q4. Does New Hampshire require interest on security deposits?
Yes. When a landlord holds a security deposit for one year or longer, interest must be paid at the applicable regular savings-account rate specified by RSA 540-A:6(IV).

Q5. How long does a landlord have to return a security deposit in New Hampshire?
Generally, 30 days after termination of the tenancy, together with interest due, if any.

Q6. What can a landlord deduct from a New Hampshire security deposit?
Permitted deductions can include damage beyond reasonable wear and tear, unpaid rent, qualifying real-estate-tax increases and other lawful lease charges. Damage claims require the statutory written itemization and satisfactory repair evidence.

Q7. Can a landlord deduct for normal wear and tear?
No. RSA 540-A:7 permits deductions for damage while expressly excluding reasonable wear and tear.

Q8. What happens if a landlord violates New Hampshire security-deposit law?
The consequence depends on the specific violation. Certain violations of RSA 540-A:6 are deemed violations of RSA 358-A:2, while violations involving required interest or the return and deduction rules can trigger the statutory damages formula.

Q9. What if the tenant does not provide a forwarding address?
A landlord may be relieved of liability attributable to the tenant's failure to provide a new address. Deposits and interest remaining unclaimed for six months after termination become the landlord's property, absent fraud.

Q10. What happens to the security deposit when a New Hampshire rental property is sold?
The deposit must generally be transferred according to RSA 540-A:6, and the tenant must receive the required notice identifying the new holder.

Q11. Do shared facilities follow the same security-deposit rules?
Not necessarily. Certain qualifying shared-facility occupancies are governed separately under RSA 540-B:10. The manager should first determine whether that statute actually applies to the occupancy.