New Mexico Letter from Landlord to Tenant Returning security deposit less deductions
What is this form?
This letter from landlord to tenant regarding the return of a security deposit outlines any necessary deductions made from the deposit. It is an essential document that clarifies the reasons for withholding part of the security deposit, such as unpaid rent or damages beyond normal wear and tear. Unlike a rental lease agreement, this letter specifically addresses the financial transactions related to the security deposit, ensuring transparency between the landlord and tenant.
Main sections of this form
- Reference to the original lease agreement date and address.
- Statement of the total security deposit amount.
- Itemized list of deductions made from the security deposit.
- Clear explanation of the reason for each deduction, such as unpaid rent or necessary repairs.
- Signature line for the landlord to confirm the notification.
When to use this document
This form should be used whenever a landlord needs to return a tenant's security deposit after the termination of a lease. It is appropriate in situations where deductions are necessary for unpaid rent, repairs, or cleaning beyond normal wear and tear. Using this letter helps ensure legal compliance and keeps a clear record of financial transactions associated with the security deposit.
Who needs this form
- Landlords who have rented residential property.
- Property managers responsible for handling security deposits.
- Tenants who need clarity on deductions made from their security deposits.
How to prepare this document
- Identify the parties: Enter the names of the landlord and tenant.
- Specify the property: Include the complete address of the rental property.
- Enter the date: Fill in the date of the lease agreement.
- State the deposit amount: Indicate the total security deposit amount held.
- List deductions: Provide an itemized list of any deductions made from the deposit.
- Sign the letter: The landlord should sign and date the letter to validate the notice.
Notarization requirements for this form
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
Typical mistakes to avoid
- Failing to itemize deductions clearly, which may lead to disputes.
- Not providing the form in a timely manner after the tenant vacates.
- Using vague language that does not specify reasons for deductions.
- Not keeping a copy of the letter for the landlord's records.
Benefits of using this form online
- Convenient access to a downloadable template that can be completed and customized easily.
- Ability to edit the document to fit specific needs or circumstances.
- Reliable legal language drafted by licensed attorneys, reducing the risk of errors.
What to keep in mind
- This letter serves as a formal notification regarding the status of the security deposit.
- Clear itemization of deductions helps prevent misunderstandings with tenants.
- State laws govern how security deposits should be handled, so compliance is essential.
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FAQ
New Mexico state law limits how much a landlord can charge for a security deposit (one month's rent), when it must be returned (within 30 days after a tenant moves), and sets other restrictions on deposits.
Concisely review the main facts and lay out the reasons your landlord owes you money. Include copies of relevant letters and agreements, such as your notice to move out. Ask for exactly what you want, such as the full amount of your deposit within ten days. Cite state security deposit law.
Unpaid rent at the end of the tenancy. Unpaid bills at the end of the tenancy. Stolen or missing belongings that are property of the landlord. Direct damage to the property and it's contents (owned by the landlord) Indirect damage due to negligence and lack of maintenance.
If your deposit didn't need to be protected and your landlord refuses to give it back, you might have to take them to court.You'll need to take your landlord to the small claims court to get your money back.
5 Times a Landlord Does Not Have to Return a Tenant's Security Deposit. Breaking or Terminating a Lease Early. Nonpayment of Rent. Damage to the Property. Cleaning Costs. Unpaid Utilities.
Your Landlord is legally obligated to return your deposit within 10 days of you both agreeing how much you'll get back (after the tenancy has ended, of course).
The landlord is entitled to deduct from the rental deposit any expenses incurred repairing any damage to the property which occurred during the tenancy. The remainder of the money must then be refunded to the tenant no later than 14 days after the restoration of the property as dictated by the Act.
Your landlord can still deduct from your deposit to cover the cleaning bill if the property is not cleaned to the level it was at and can prove it, though. So, it's still important to clean the property thoroughly before you move out.
Generally, a landlord may retain all or part of the security deposit to pay for damages to the unit that occurred during the tenants' occupancy, except for those resulting from normal wear and tear. Usually, the landlord can deduct other costs, such as late fees, unpaid rent, and unpaid utility bills.