What deductions can legally be taken from a security deposit?

Security Deposit Deductions for Tenants in New Hampshire

When renting a property in New Hampshire, understanding what deductions a landlord can legally make from your security deposit is crucial. The security deposit is intended to protect landlords against damages or losses beyond normal wear and tear, but tenants also have rights that safeguard against unfair deductions. This guide outlines the key points New Hampshire tenants should know about permissible security deposit deductions under state law.

Overview of Security Deposits in New Hampshire

In New Hampshire, there is no statutory limit on the amount a landlord may charge for a security deposit. However, the handling of the deposit and the conditions under which deductions can be made are governed by state laws and court interpretations.

The security deposit is generally collected to cover:

• Unpaid rent
• Damages beyond normal wear and tear
• Other breaches of the lease agreement, such as cleaning costs or key replacement (if reasonable)

Legal Grounds for Security Deposit Deductions

New Hampshire landlords can deduct from the security deposit only for costs that meet certain criteria. The permissible deductions commonly include:

1. Unpaid Rent and Fees

• Unpaid Rent: Landlords may deduct any rent the tenant owes at the end of the lease term.
• Late Fees and Other Charges: If included in the lease and accrued legally, these fees can also be deducted.

2. Repairs for Damages Beyond Normal Wear and Tear

• Damages vs. Wear and Tear: Landlords cannot charge for normal wear and tear—the expected deterioration from regular use, such as minor scuff marks, small nail holes, or faded paint.
• Permissible Deductions: Costs to repair significant damages caused by tenant negligence or abuse, such as:

- Broken windows - Holes in walls (beyond small nail holes) - Missing or damaged fixtures or appliances - Stains or burns on carpets and floors

• Documentation: It is advisable for landlords to provide receipts or estimates for repair costs to justify deductions.

3. Cleaning Costs

• Condition of Premises at Move-in vs. Move-out: Tenants are expected to return the property in the same reasonably clean condition as at the start of the tenancy.
• Excessive Cleaning Charges: Landlords may deduct for cleaning if the property was left excessively dirty beyond normal cleanliness, such as:

- Accumulated trash or debris inside or outside the rental unit - Stains, grease, or other substances requiring professional cleaning

• A general cleaning to make the unit ready for the next tenant that reflects normal cleaning after move-out is typically not deductible.

4. Replacement of Lost or Damaged Keys

• If a tenant fails to return keys, landlords may deduct reasonable costs for rekeying locks or replacing keys.

Important Considerations for Tenants

• Written Itemized Statement: Upon termination of the tenancy, New Hampshire law requires landlords to provide an itemized list of deductions along with any remaining balance of the security deposit within 30 days of lease termination.
• Disputing Deductions: Tenants may dispute any deduction they believe is unfair or unlawful by negotiating with the landlord or, if necessary, pursuing the matter in court.
• Documentation: Tenants should take photographs and keep records of the rental unit’s condition both at move-in and move-out to protect themselves from wrongful deductions.
• Interest on Security Deposits: New Hampshire does not require landlords to pay interest on security deposits, but local ordinances or lease agreements may specify otherwise.

Best Practices for Tenants to Minimize Deductions

• Conduct a Move-in Inspection: Request a detailed inspection report and note any pre-existing damages or issues.
• Maintain the Property: Properly clean and make minor repairs during the tenancy.
• Communicate with Landlord: Notify the landlord promptly of any damage or maintenance problems.
• Prepare for Move-out: Thoroughly clean the unit and repair any damage caused during the tenancy.
• Request a Walk-through: Ask your landlord for a pre-move-out inspection to identify potential issues.

Summary

In New Hampshire, landlords may legally deduct from a tenant’s security deposit only for unpaid rent, repairs of damages beyond normal wear and tear, excessive cleaning costs, and replacement of lost keys. Normal wear and tear and routine cleaning are not legitimate grounds for deductions. Tenants have the right to an itemized list of deductions and must receive any remaining deposit balance within 30 days after lease termination. Awareness of these rules helps tenants protect their security deposits and ensures a fair rental experience.