New Hampshire Security Deposit Rules: RSA 540-A
Expert guide to security deposits in New Hampshire, including the 30-day return rule and mandatory interest payments under RSA 540-A.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
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.
Back to New Hampshire Overview.
Sources & Official References
Frequently Asked Questions
▶What are the New Hampshire security deposit rules and return deadlines?
New Hampshire has specific rules governing how much landlords can charge for security deposits, how deposits must be held, and the deadline for returning deposits after a tenant moves out. Landlords must provide an itemized statement of any deductions made from the deposit. Failure to comply with deposit return deadlines can result in penalties and the forfeiture of the landlord's right to claim deductions.
▶What are the New Hampshire landlord-tenant laws every property owner should know?
Understanding the intricacies of Overview in New-hampshire, Usa is absolutely vital for landlords and property managers aiming to maintain strict legal compliance and optimize their real estate portfolios. This guide covers the essential compliance requirements for property owners and landlords.
Read the complete guide▶What is the New Hampshire eviction process and how long does it take?
The New Hampshire eviction process requires landlords to provide written notice to tenants before filing a court action. The type and length of notice depends on the reason for eviction — typically shorter for non-payment of rent and longer for lease violations or no-fault terminations. Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal in New Hampshire. The full court process varies but typically takes several weeks.
Read the complete guide▶What are the New Hampshire rent increase laws and caps for landlords?
New Hampshire has specific rules governing when and how landlords can increase rent. During a fixed-term lease, rent generally cannot be increased unless the lease explicitly allows it. For month-to-month tenancies, landlords must provide proper written notice before an increase takes effect. Check whether New Hampshire has any local rent control ordinances that may impose additional caps or requirements.
Read the complete guide▶What is the grace period for late rent in New Hampshire?
New Hampshire has specific rules regarding grace periods for late rent and the amount that can be charged as a late fee. Late fee provisions must be stated in the lease agreement, and fees must be reasonable. Check New Hampshire state law and any applicable local ordinances for the exact grace period and late fee limits that apply to your rental property.
Read the complete guide▶What disclosures must New Hampshire landlords provide to tenants?
New Hampshire landlords must provide certain disclosures to tenants before or at the time of lease signing. Common required disclosures include lead-based paint hazards (for pre-1978 buildings, a federal requirement), the identity of the landlord or property manager, and any known material defects in the property. Additional state-specific disclosures may include flood risk, mold hazards, and environmental conditions.
Read the complete guide▶What are the New Hampshire lease requirements for rental properties?
New Hampshire recognizes both written and oral leases, though written leases are strongly recommended for terms longer than one year. Lease agreements should include the rent amount, payment due date, security deposit terms, maintenance responsibilities, and rules regarding entry, pets, and subletting. Certain lease clauses that waive tenant statutory rights may be void and unenforceable under New Hampshire law.
Read the complete guide▶What are New Hampshire landlord maintenance obligations and habitability standards?
New Hampshire landlords must maintain rental properties in a condition that is fit for habitation and complies with applicable building, housing, and health codes. This includes maintaining structural integrity, plumbing, heating and cooling systems, electrical systems, and pest control. Tenants typically have the right to request repairs in writing, and if repairs are not made within a reasonable time, tenants may have legal remedies available.
Read the complete guide📬 Get notified when these laws change
We'll email you when landlord-tenant laws update in No spam — only law changes.
