As a landlord or tenant in New Hampshire, it’s important to understand the rules surrounding security deposits. These deposits are a common part of renting a home or apartment, but the way they are handled is governed by specific laws to protect both parties. Whether you're a landlord looking to stay compliant or a tenant wanting to ensure your rights are respected, understanding the ins and outs of security deposit laws in New Hampshire is key.
What is a Security Deposit?
A security deposit is a sum of money paid by the tenant to the landlord at the beginning of a lease. It serves as a financial safeguard for the landlord in case the tenant damages the property, fails to pay rent, or breaks the lease early. In New Hampshire, the security deposit is typically collected before the tenant moves in, but it’s important to know both the landlord’s responsibilities and the tenant’s rights.
How Much Can a Landlord Charge for a Security Deposit in New Hampshire?
For an apartment a landlord may collect up to one month’s rent as a security deposit. If it’s single-family home, there’s no maximum and if the apartment is furnished they can charge two month’s rent.
When Must the Security Deposit Be Returned?
New Hampshire law mandates that landlords return the security deposit to the tenant within 30 days of the end of the lease or when the tenant vacates the property, whichever is earlier.
If the landlord plans to keep any portion of the security deposit, they must provide the tenant with an itemized list of deductions, including the reason for each charge. This list should be provided within the 30-day window and should detail any damages, unpaid rent, or cleaning costs deducted from the deposit.
What Can a Landlord Deduct From the Security Deposit?
A landlord is allowed to withhold portions of the security deposit for the following reasons:
- Unpaid Rent: If the tenant owes rent after moving out, the landlord may use the deposit to cover any outstanding balance.
- Damage Beyond Normal Wear and Tear: Landlords can deduct costs for repairs to damage caused by the tenant that goes beyond what is considered "normal wear and tear." Normal wear and tear refers to the natural deterioration of the property that occurs over time with use.
- Cleaning Costs: If the rental unit requires additional cleaning beyond normal use, the landlord can charge the tenant for cleaning expenses.
However, landlords cannot charge for routine maintenance (like repainting or replacing worn carpet) or deduct for issues caused by natural wear and tear.
What is Considered Normal Wear and Tear?
It’s essential for both landlords and tenants to understand the difference between “normal wear and tear” and damage that justifies a deposit deduction. Here are some examples:
- Normal Wear and Tear:
- Fading paint or minor scuff marks on walls
- Worn carpet or flooring
- Loose doorknobs or hinges from everyday use
- Excessive Damage:
- Large holes in walls or broken windows
- Burns or stains on carpet
- Pet damage beyond the normal expectation
If a landlord deducts for damage that seems excessive or beyond the scope of what’s allowed, the tenant has the right to dispute it.
Disputes Over Security Deposits
If landlord and tenants cannot reach an agreement, tenants have the option to take legal action by filing a complaint in small claims court.
Before filing a lawsuit, tenants should document the condition of the property when they moved out, preferably with photos or videos, to support their case.
Conclusion
Understanding New Hampshire’s security deposit laws is vital for both tenants and landlords to ensure fair treatment during and after a lease. Documentation goes a long way. Pictures (or videos!) should be taken before move in and move out and should be shared to document conditions.
The best way to avoid issues is to with the lease before things happen. The lease should be as detailed as possible about what is expected – are nails in the walls allowed? Pets? Who is replacing lightbulbs, smoke detector batteries, air filters, water filters?
Legal Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal advice. I am not a licensed attorney, and the content of this blog does not create an attorney-client relationship. Laws and regulations may vary, and it is always recommended to consult with a qualified legal professional to address specific legal concerns or questions regarding your situation.
