Property Management

In New Mexico, when a landlord receives a security deposit that exceeds one month's rent for a furnished unit, the amount over one month's rent:

AMust be held in a separate account by state law
BMay be retained in the same account as other deposits
CNew Mexico's UORRA caps deposits at one month's rent for furnished units—any excess is impermissible✓ Correct
DMust be returned immediately

Explanation

New Mexico's UORRA limits security deposits to one month's rent for furnished units. Any amount collected above this cap is unauthorized. For unfurnished units, there is no specific statutory cap under current law.

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