New Hampshire Security Deposit Laws: The Low Cap

New Hampshire's RSA 540-A imposes one of the most tenant-friendly security deposit frameworks in the northeastern United States. The combination of a very low statutory cap and strict handling requirements means landlords must operate with extreme precision.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a licensed New Hampshire attorney for advice specific to your situation. Information last verified: March 2026.

The Maximum Deposit Limit

Under RSA 540-A:6, a landlord may collect a security deposit that does not exceed one month's rent or $100, whichever amount is greater.

This is an unusually low cap when compared to other New England states. There is no separate allowance for additional "pet deposits" or "cleaning deposits." Any upfront refundable charge intended to cover potential damages is counted toward this single statutory limit.

Holding the Deposit

New Hampshire law requires the landlord to take specific steps with the deposit funds:

1. Segregated Account: The deposit must be placed in a bank account at a New Hampshire bank (or an out-of-state bank with a branch in New Hampshire).
2. No Commingling: The deposit funds must be kept physically separate from the landlord's personal or business operating accounts.
3. Disclosure: The landlord must inform the tenant in writing of the name and address of the bank holding the deposit, and the account number, within 30 days of receiving the deposit.

Allowable Deductions

When a tenant moves out, the landlord can only deduct from the security deposit for specific, legally defined reasons:

• Unpaid rent.
• Damage to the premises caused by the tenant beyond normal wear and tear.
• Unpaid utility charges for which the tenant is contractually responsible.
• The reasonable cost of cleaning the premises if the tenant left the unit in a condition not meeting the standard specified at move-in.

The 30-Day Return Timeline

After the tenancy is terminated and the tenant has vacated:

1. The landlord has 30 days to either return the full deposit or return the balance remaining after deductions.
2. If withholding any portion, the landlord must provide an itemized written statement describing every single deduction and the specific dollar amount claimed.
3. If the landlord fails to return the deposit (or the itemized statement) within the 30-day window, they forfeit the right to claim any deductions and must return the entire original deposit to the tenant.

Penalties for Non-Compliance

If a landlord willfully violates the security deposit provisions under RSA 540-A, a New Hampshire court can award the tenant damages, court costs, and reasonable attorney's fees. The penalties are severe enough that a single administrative mistake can cost a landlord significantly more than the original deposit amount.

Automating Deposit Compliance

Given New Hampshire's uniquely low deposit cap and strict segregation rules, even a minor administrative slip can result in forfeiture of the entire deposit. Landager's platform tracks the exact bank location, generates the required 30-day written bank disclosure for new tenants, and auto-calculates the 30-day return deadline upon move-out, ensuring your New Hampshire portfolio remains in full compliance with RSA 540-A.

Back to New Hampshire Landlord-Tenant Laws Overview.