Real Estate Accounting in Albuquerque
New Mexico ties the deposit cap to the length of the lease rather than to the unit, and attaches an interest obligation to anything above the base. Albuquerque portfolios running mixed lease terms hit both rules at once.
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New Mexico rules that apply here
- Deposit return deadline
- 30 days from termination or departure, whichever is later
- Statute
- NMSA 47-8-18
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Under 47-8-18 the deposit is limited to one month's rent for agreements of a year or less. For longer leases the statute does not set the same fixed ceiling, but where a landlord collects more than one month's rent the landlord must pay the tenant annual interest on the portion exceeding one month. So taking a larger deposit is permitted in the right circumstances and it converts a static liability into an accruing one.
Assigned, Responsive Team
That splits a single deposit into two components with different treatments: the base month, which sits as an ordinary trust liability, and the excess, which accrues interest payable annually. A ledger holding one figure per tenant cannot compute the obligation, because the accrual applies only to the part above the threshold.
Accurate Monthly Bookkeeping
The return clock is 30 days from termination of the rental agreement or the resident's departure, whichever is later, with an itemised written list of deductions and the balance. Portfolios assuming the clock starts at move-out are using the earlier of the two dates rather than the later one, which is the safer error but still the wrong rule.
Deposit Compliance for Albuquerque Portfolios
NMSA 47-8-18
New Mexico 47-8-18 ties the cap to LEASE LENGTH rather than to the unit: one month's rent for agreements of a year or less. The itemised written list of deductions and the balance are due within 30 days of termination of the rental agreement or the resident's departure, WHICHEVER IS LATER, so assuming the clock starts at move-out uses the earlier date.
Where a landlord collects more than one month's rent, annual interest is owed to the tenant on the portion EXCEEDING one month. That splits a single deposit into two components with different treatments: the base month as an ordinary trust liability, and the excess as an accruing one. A ledger holding one figure per tenant cannot compute the obligation, and because the threshold is one month's RENT, a rent increase shrinks the excess without the deposit changing.
All New Mexico requirementsHow we keep you inside it
- Deposit liabilities tracked per tenant in AppFolio, so a 30 days from termination or departure, whichever is later deadline is answerable from the ledger
- Trust accounts reconciled three ways every month
- Deduction documentation recorded against the correct ledger
- Aging deposits flagged before the statutory window closes
Appfolio Bookkeeping Services from REA
Available to Albuquerque Operators
Trust Bookkeeping
Leverage Appfolio's powerful bookkeeping capabilities with REA's tailored service.
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REA's skilled team, in combination with Appfolio's comprehensive toolset, addresses the complexity of your corporate financial activities.
See how it worksBank Reconciliations
Employing Appfolio's state-of-the-art system, REA offers bank reconciliation services that brings meticulous accuracy to your finances.
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REA utilizes Appfolio's advanced diagnostic tools to swiftly and effectively troubleshoot financial anomalies.
See how it worksTrust Compliance
REA pairs its accounting prowess with Appfolio's detailed reporting to deliver comprehensive Trust Compliance Verification services.
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For Albuquerque Portfolios
- Process Review & Set Up
- Bank Reconciliations
- AP / AR
- Accurate NOI, Balance Sheets
- Recording HUD's & Accruals
- Owner Distributions
- Monthly Statements & Reports
- Management Fees
- Corporate Bookkeeping
- Tenant Chargebacks
Take the Whole Close, or One Function
Albuquerque operators use REA for the full monthly close or for the single function that has become a bottleneck. Each one is performed inside your AppFolio instance.
Trust Accounting
Compliant, audit-ready trust funds
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Three-way reconciliation, every account
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Bills paid, rent collected, owners paid
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Back books fixed and current
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Annual commercial true-ups
Learn moreExperts In All Property Types
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community Associations
- Commercial
Experts In All Property Types
Residential, commercial and everything in between. The asset class changes what the books have to prove, and our teams are staffed accordingly.
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community AssociationsSee the page
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Check Out What Our Clients Have To Say About Us
Property Managers, Investors & Owner Operators
As REA exclusively specializes in Real Estate, I rest easy knowing my financials are precise every month while saving money at the same time, an invaluable benefit.
I highly recommend Real Estate Accounting (REA) services from this group. They truly are great and have helped us tremendously at a time we needed it the most. I felt very comfortable giving up all my accounting responsibilities to this team and I'm still glad I made the decision to work with this group. Nothing less than an amazing experience!
REA and team have been nothing but excellent helping our firm with its day to day financial needs. Their expertise, professionalism, and timeliness have made our lives so much easier. We foresee a long relationship with REA and team.
Frequently Asked Questions
How much deposit can we take in New Mexico?
One month's rent for agreements of a year or less. On longer leases more is possible, but anything above one month's rent carries an obligation to pay the tenant annual interest on the excess.
How should a deposit above one month be recorded?
As two components. The base month is an ordinary trust liability; the excess accrues interest payable annually. One combined figure per tenant cannot compute the obligation.
When does the 30-day clock start?
At termination of the rental agreement or the resident's departure, whichever is LATER. Assuming move-out starts it uses the earlier date.
More in New Mexico
Other New Mexico markets, the platforms we work in, and the functions available on their own.
AppFolio Bookkeeping for Albuquerque
Schedule a call and we will review your AppFolio setup, your New Mexico deposit handling, and what it takes to close clean every month.