New Hampshire Security Deposit Rules: RSA 540-A

Legal Framework for New Hampshire Security Deposits

In the state of New Hampshire, the relationship between landlords and tenants regarding security deposits is strictly governed by RSA 540-A:6 through RSA 540-A:8, which has provided comprehensive statutory protection for tenant funds since its enactment on July 1, 1979. New Hampshire law is particularly focused on transparency and the timely return of funds, with strict liability penalties for non-compliance enforced in the Circuit Court-District Division.

1. Mandatory Receipt and Amount

At the start of a tenancy, a landlord in New Hampshire is permitted to charge a security deposit, but it cannot exceed the equivalent of one month's rent or $100, whichever is greater (RSA 540-A:6, I).

• Receipt Requirement: Upon receiving a deposit, the landlord must forthwith deliver a signed receipt stating the amount and specifying the New Hampshire financial institution where the funds will be held. The receipt must also notify the tenant of their right to provide a written list of defects within 5 days of occupancy (RSA 540-A:6, I(b)).
• Escrow: Deposits must be held in a New Hampshire financial institution (bank, savings and loan, or credit union) and must not be commingled with the landlord's personal funds (RSA 540-A:6, II).
• Exemptions: These rules (RSA 540-A:5 through 540-A:8) do not apply to owner-occupied buildings of 5 units or less (unless the unit is occupied by a person 60 years of age or older), single-family residences where the owner owns no other rental property, or vacation/recreational rentals (RSA 540-A:5, I).

2. The 30-Day Return Timeline (RSA 540-A:7)

A landlord must return the security deposit, plus any accrued interest, within 30 days after the termination of the tenancy.

• The Address Trigger: If the tenant does not provide a forwarding address upon moving out, the 30-day clock begins on the date the landlord receives the address in writing.
• Itemized Deductions: Landlords may deduct for unpaid rent, the tenant's share of real estate tax increases (if specified in the lease), and damages beyond normal wear and tear. If any portion is withheld, the landlord must provide a written, itemized list of damages with particularity and evidence of repair costs (such as receipts or estimates) within the same 30-day window.

3. Mandatory Interest Payments (RSA 540-A:6, IV)

One of the most unique aspects of New Hampshire law is the interest requirement. If a landlord holds a security deposit for one year or longer, they are required to pay interest on that deposit.

• Rate: The interest rate must equal the rate paid on regular savings accounts at the New Hampshire institution where the money is held.
• Payment: Interest can be paid annually or at the end of the tenancy. Every three years, a tenant may request their accrued interest. The request must be made 30 days before the expiration of that year's tenancy, and the landlord must pay the interest within 15 days of the expiration of that year's tenancy (RSA 540-A:6, IV(c)).

New Hampshire Compliance Snapshot

Risk Mitigation: Penalties and Consumer Protection

Under RSA 540-A:8, any landlord who fails to comply with the return (RSA 540-A:7) or interest (RSA 540-A:6, IV) rules is liable for twice the sum of the deposit plus interest, less lawful deductions. This is a strict liability penalty and does not require a finding of "willfulness."

Furthermore, violations of the deposit limit, receipt, or transfer rules (RSA 540-A:6, I-III) are deemed violations of the Consumer Protection Act (RSA 358-A). This may trigger treble damages if the violation is found to be "willful or knowing," along with the tenant's attorney's fees and court costs.

How Landager Helps

Landager's "New Hampshire Module" is pre-configured with the RSA 540-A ruleset. Our system automatically tracks the 30-day return window and calculates the required interest based on your local bank's current savings rate. We also generate the mandatory receipt and itemization templates, ensuring you have a complete audit trail to protect against strict liability claims and Consumer Protection Act violations in the Circuit Court-District Division.

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