New Hampshire requires landlords to pay interest on security deposits held for more than a year, and its receipts and handling rules are stricter than most tenants realise. Before you sign, check whether the landlord understands and has built these obligations into the lease. NH RSA 540-A governs deposit handling, and the statute is directly enforceable: tenants can sue for double the deposit amount where a landlord fails to comply.
What is a Security Deposit?
A New Hampshire security deposit is any sum, other than rent, held by the landlord to secure performance under the lease. It is capped at 1 month's rent or $100, whichever is greater (for most residential rentals). Landlords must provide a signed receipt, hold the deposit in a separate account (in certain cases), pay simple interest if held over one year, and return it within 30 days of termination with an itemised statement.
Red flags to watch for
NH RSA 540-A:6 caps deposits at this amount for most residential tenancies. Excess is unlawful.
RSA 540-A:6(II) requires a signed receipt stating where the deposit is held. A lease silent on this is non-compliant.
If the deposit is held longer than a year, interest (at the rate paid on NOW accounts) is due to the tenant. Leases that ignore this can lead to compound violations.
RSA 540-A:7 requires return within 30 days of termination. Longer periods are unenforceable.
New Hampshire treats deposit-like fees as deposits. Labelling a fee 'non-refundable' doesn't avoid the Act.
Wrongful retention triggers double damages plus costs. Clauses waiving this remedy are unenforceable.
Your legal rights
New Hampshire tenants are protected under RSA 540-A (Prohibited Practices and Security Deposits) and RSA 540 (Actions Against Tenants). Key rights: deposit cap of 1 month's rent or $100; signed receipt with account-holding information; interest payable after 1 year; return within 30 days with itemised statement; double damages plus costs for wrongful retention. Enforcement is via the Circuit Court district division. Additional rights apply under the NH Consumer Protection Act (RSA 358-A) for unfair and deceptive practices.
Questions to ask before you sign
- 1What is the deposit amount, and does it exceed 1 month's rent or $100?
- 2Will I receive a signed receipt identifying where the deposit is held?
- 3If the deposit is held over 1 year, how will interest be calculated and paid?
- 4What is the itemised deduction process at move-out?
- 5Are there any non-refundable fees, and how are they labelled in the lease?
- 6What court handles disputes, and what is the small-claim limit?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.