New Mexico

Rental Lease Laws Overview

In New Mexico, there are specific regulations governing rental agreements:

• Rent Control: Not applicable in New Mexico.
• Limit on Late Fees: Yes, late fees are permitted.
• Late Fees in Rental Agreement: Must be included in the rental agreement.
• Grace Period: No grace period is provided.
• License Required for Landlord: No license is required for landlords.

Landlords are encouraged to use a rental application to screen potential tenants before finalizing a lease.

Required Lease Disclosures

Landlords in New Mexico must provide essential disclosures to tenants, including:

• Lead Paint Disclosure: Tenants must be informed of potential exposure to lead-based paint if the property was constructed before 1978.
• Owner Identity Disclosure: Landlords must disclose who is authorized to access the property and provide an address for official notices.

Security Deposit

The regulations regarding security deposits in New Mexico are as follows:

• Maximum Amount:

  • For leases shorter than one year, the maximum security deposit is one month’s rent.
  • For leases longer than one year, there is no maximum limit.
  • If the deposit exceeds one month’s rent, the landlord is required to pay interest to the tenant.

• Receipts: Not specified in the law.

• Interest Payments: Not required.

• Bank Account: Security deposits must be held in an escrow account at a federally insured bank.

• Returning Requirements: Landlords must return security deposits within thirty days after the lease ends.

• Withholding Rules: Landlords can deduct from the security deposit for unpaid rent, utility bills, repair costs, and damages beyond normal wear and tear. A written, itemized list of deductions must be provided to the tenant.

Rent Payments

The rules governing rent payments are as follows:

• Laws: Rent is due at the beginning of each month unless otherwise stated in the lease.

• Rent Control: Rent control is not permitted.

• Late Fees and Grace Period:

  • No grace period is provided.
  • Late fees cannot exceed 10% of the monthly rent.
  • If rent remains unpaid, landlords can initiate eviction proceedings with a 3-day notice to quit.

• Withholding Rent:

  • Tenants may withhold one-third of daily rent if the landlord violates the rental agreement in a manner that affects health and safety, with at least seven days’ notice.
  • If the unit is deemed uninhabitable, tenants may withhold all rent until necessary repairs are made.

Landlord Right of Entry

Landlords are required to provide tenants with at least one day’s notice before entering the rental property. There are no specific provisions regarding keys, locks, and security.

Property Repairs

Landlords and tenants have distinct responsibilities regarding property repairs:

• Landlord Responsibilities: Landlords must maintain habitable rental units, comply with local housing and safety codes, and address repairs promptly. They are also responsible for providing essential utilities such as electricity, plumbing, water, HVAC, and trash collection.

• Tenant Repairs: Tenants are responsible for minor repairs and maintaining the cleanliness of their rental unit. They should regularly check the electrical, plumbing, and sanitation systems.

• Abandonment: If a tenant is absent for over seven days without notifying the landlord and is behind on rent, the landlord may assume the unit has been abandoned.

Terminating a Lease

For month-to-month tenancies, either party can terminate the lease by providing a 30-day written notice to the other party.

In cases of unclaimed property, landlords must store any personal belongings left by a tenant for at least 14 days before disposal. If the tenant has abandoned the property, the landlord must keep the belongings for at least 30 days and provide written notice of the intent to dispose of them.

Statutes

• N.M. Stat. § 47-8-6(A) – Recovery of damages
• N.M. Stat. § 47-8-15(B) – Payment of rent
• N.M. Stat. § 47-8-15(D) – Payment of rent
• N.M. Stat. § 47-8-15(F) – Payment of rent
• N.M. Stat. § 47-8-18(A) – Deposits
• N.M. Stat. § 47-8-18(B) – Deposits
• N.M. Stat. § 47-8-18(C) – Deposits
• N.M. Stat. § 47-8-18(D) – Deposits
• N.M. Stat. § 47-8-18(A)(1) – Deposits
• N.M. Stat. § 47-8-19 – Owner disclosure
• N.M. Stat. § 47-8-20(G) – Obligations of owner
• N.M. Stat. § 47-8-20 – Obligations of owner
• N.M. Stat. § 47-8-22 – Obligations of resident
• N.M. Stat. § 47-8-24(A)(1)(2) – Right of entry
• N.M. Stat. § 47-8-24(B) – Right of entry
• N.M. Stat. § 47-8-24(A)(1)(2) – Right of entry
• N.M. Stat. § 47-8-25 – Use of dwelling unit limited
• N.M. Stat. § 47-8-27.1 – Breach of agreement by owner and relief by resident
• N.M. Stat. § 47-8-27.2 – Abatement
• N.M. Stat. § 47-8-33(A) – Breach of agreement by resident and relief by owner
• N.M. Stat. § 47-8-33(B) – Breach of agreement by resident and relief by owner
• N.M. Stat. § 47-8-33(J) – Breach of agreement by resident and relief by owner
• N.M. Stat. § 47-8-33 – Breach of agreement by resident and relief by owner
• N.M. Stat. § 47-8-34(B) – Notice of extended abscence
• N.M. Stat. § 47-8-36 – Unlawful removal and diminution of services prohibited
• N.M. Stat. § 47-8-37(A) – Notice of termination and damages
• N.M. Stat. § 47-8-37(B) – Notice of termination and damages
• N.M. Stat. § 47-8-39 – Owner retaliation prohibited
• N.M. Stat. § 47-8-48 – Prevailing party rights in law suit; civil penalties
• N.M. Stat. § 34-8A-3 – Metropolitan court; jurisdiction
• N.M. Stat. § 47-8-42 – Petition for restitution
• N.M. Stat. § 37-1-3(A) – Notes; written instruments; period of limitation; computation of period
• N.M. Stat. § 37-1-4 – Accounts and unwritten contracts; injuries to property; conversion; fraud; unspecified actions