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.
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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. New Hampshire law is particularly focused on transparency and the timely return of funds, with harsh penalties for "willful" non-compliance.
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 (unless the lease is for a shared facility).
- Receipt Requirement: The landlord must provide a written receipt for the deposit immediately. This receipt must state the name of the financial institution where the funds are being held.
- Escrow: Deposits must be held in a New Hampshire financial institution and must not be commingled with the landlord's personal funds.
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 tenant vacates the premises.
- 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: If any portion of the deposit is withheld for damages (beyond normal wear and tear) or unpaid rent, the landlord must provide a written, itemized list of these deductions 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 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, and the landlord must pay it within 15 days of the request (provided it was made 30 days before the anniversary).
New Hampshire Compliance Snapshot
Risk Mitigation: The Bad Faith Penalty
Under RSA 540-A:8, if a court finds that a landlord willfully failed to comply with the deposit return or interest rules, the landlord may be liable for double the amount of the deposit plus interest, 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 "willful violation" claims in circuit court.
Back to New Hampshire Overview.
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