New Hampshire Security Deposit Law: Protecting Tenants in the Granite State
New Hampshire may be a small state, but its security deposit protections under N.H. Rev. Stat. § 540-A:6 are significant. The law caps deposits, requires interest payments on longer tenancies, and provides double damages plus attorney fees for tenants whose deposits are wrongfully withheld. Whether you're renting in Manchester, Nashua, Concord, or a rural town, the same rules apply statewide.
Deposit Cap and Collection Rules
New Hampshire limits the security deposit to one month's rent or $100, whichever is greater. This cap means that for most market-rate rentals, the deposit equals exactly one month's rent. The $100 minimum ensures that even very low-rent arrangements — such as room rentals or subsidized housing — provide some baseline security for the landlord.
At the time of collection, the landlord should provide the tenant with a written receipt for the deposit. While the statute does not mandate a specific receipt format, having written confirmation of the amount paid and the date of payment is essential for both parties. Tenants should request a receipt if one is not offered and should keep it for the duration of the tenancy.
How the Deposit Must Be Held
New Hampshire requires landlords to hold security deposits in a manner consistent with the statute's provisions. While the law does not mandate a separate escrow account in all cases, landlords who hold deposits for one year or longer must ensure the funds are in an account that bears interest. The distinction is important: short-term tenancies of less than a year do not trigger the interest requirement, but any lease of 12 months or more does.
Interest on Deposits Held One Year or More
One of New Hampshire's distinguishing features is its conditional interest requirement. If a security deposit is held for one year or longer, the landlord must pay the tenant interest at the rate paid by the bank where the deposit is held. The interest is calculated from the date the deposit was received.
This means that for a standard one-year lease, the tenant is entitled to interest on the deposit when it is returned. For multi-year tenancies, the interest accumulates over the entire period. While bank interest rates may be modest, the obligation creates a paper trail and financial accountability that benefits tenants.
What If the Landlord Doesn't Pay Interest?
If the landlord fails to pay the required interest, the tenant may be able to claim that the landlord has violated the statute, potentially triggering the double damages and attorney fees penalty. Tenants who have held a lease for a year or more should specifically verify that their deposit return includes the appropriate interest amount.
The 30-Day Return Deadline
After a tenant vacates, the landlord has 30 days to return the full deposit with accrued interest or to provide a written, itemized list of damages along with any remaining balance. The 30-day period begins when the tenant surrenders the premises and the tenancy officially terminates.
New Hampshire's statute requires the itemized list to describe each deduction with sufficient detail for the tenant to understand what is being charged and why. Vague entries such as "general cleaning — $300" or "miscellaneous repairs — $500" do not satisfy this requirement. Each charge should identify the specific damage, the repair performed or needed, and the cost.
Permissible Deductions in New Hampshire
New Hampshire landlords may deduct from the security deposit for:
- Unpaid rent
- Damage to the premises caused by the tenant, beyond normal wear and tear
- Unpaid utility charges if the tenant was responsible under the lease
- Other charges specifically provided for in the lease agreement, as long as they are reasonable
The "normal wear and tear" exclusion applies in New Hampshire as it does nationwide. Landlords cannot charge tenants for the natural aging of the property — faded paint, worn carpet, minor scuffs, and similar conditions. Damage from tenant negligence, misuse, or intentional acts is deductible.
Cleaning Deductions
A common source of disputes in New Hampshire involves cleaning charges. Landlords may deduct for cleaning costs that go beyond normal turnover — for example, removing excessive grease from a kitchen, cleaning up after pets, or addressing a unit left in an unsanitary condition. However, routine cleaning that any landlord would perform between tenants is the landlord's cost and should not be charged to the departing tenant.
Double Damages Plus Attorney Fees
New Hampshire provides meaningful penalties for landlords who violate the security deposit statute. Under N.H. Rev. Stat. § 540-A:6, a landlord who wrongfully withholds a security deposit or fails to comply with the return requirements may be liable for:
- Double the amount wrongfully withheld
- Reasonable attorney fees
- Court costs
The combination of double damages and attorney fees creates substantial exposure for non-compliant landlords. A tenant with a $1,500 deposit who proves wrongful withholding could recover $3,000 in damages plus whatever attorney fees were reasonably incurred — a total that could easily exceed $5,000. This penalty structure encourages landlords to take the statute's requirements seriously and motivates tenants to pursue legitimate claims.
New Hampshire Small Claims Court
Security deposit disputes in New Hampshire are typically filed in the District Court or Circuit Court — District Division, which handles small claims cases up to $10,000. This generous limit accommodates most deposit disputes, including those with double damages.
Filing a small claims case in New Hampshire involves these steps:
- Visit the District Division of the Circuit Court in the judicial district where the rental property is located
- Complete a Statement of Claim form
- Pay the filing fee (typically $75 to $100)
- Arrange for service on the landlord through the court clerk
- Attend the hearing date and present evidence
Small claims hearings in New Hampshire are informal proceedings. The judge or clerk-magistrate hears both sides, examines evidence, and issues a decision. Attorneys may represent parties, but many tenants successfully represent themselves. Given the attorney fee recovery available under the statute, some tenants do choose to hire legal counsel.
A Step-by-Step Approach for New Hampshire Renters
Navigating the security deposit process in New Hampshire is manageable if you follow a structured approach:
Before You Move In
Inspect the unit thoroughly before or on move-in day. Take photographs or video of every room, documenting any existing damage, stains, scuffs, or wear. Create a written list of noted conditions and share a copy with the landlord. Request a receipt for your security deposit.
During Your Tenancy
Report maintenance issues in writing. Keep copies of all communications with the landlord. If your tenancy lasts a year or more, keep track of the interest that should be accruing on your deposit.
When You Move Out
Clean the unit thoroughly, photograph every room again, and provide a written forwarding address to the landlord. Return all keys and remotes. Note the exact date you surrender possession — this starts the 30-day clock.
After Move-Out
If 30 days pass without receiving your deposit or an itemized statement, send a demand letter via certified mail referencing N.H. Rev. Stat. § 540-A:6 and your intent to pursue double damages and attorney fees. If the landlord does not respond, file in small claims court.
New Hampshire Security Deposit Law: Key Facts
- Maximum deposit: 1 month's rent or $100, whichever is greater
- Return deadline: 30 days after tenant vacates
- Interest: Required on deposits held 1 year or longer, at the bank's rate
- Penalties: Double the amount wrongfully withheld plus attorney fees and court costs
- Itemized statement: Required for any deductions
- Small claims limit: $10,000