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New Mexico Sublease Agreement

A New Mexico sublease agreement is a legal contract that allows a tenant, known as the “Sublessor,” to rent out all or a portion of their rental property to another individual, referred to as the “Sublessee”.  The Sublessor remains responsible for all obligations under the original lease, including rent payments and any damages caused by the Sublessee.

New Mexico Sublease Agreement

New Mexico Sublease Agreement

Right to Sublet

In New Mexico, tenants must obtain explicit written consent from their landlord to sublet. The law does not inherently grant tenants the right to sublet, and if the original lease prohibits subletting, the tenant cannot proceed without the landlord’s permission. If the lease is unclear or silent on the subject, it is advisable for tenants to communicate with their landlord for clarification.

Even with consent, landlords retain the right to reject a proposed subtenant based on lawful and nondiscriminatory reasons, such as poor credit history or a criminal background.

Standardized Sublease Agreement Components

A typical New Mexico sublease agreement includes the following elements:

  • Names of the Parties: Identification of the Sublessor and Sublessee.
  • Rental Unit Location: Address of the rental unit as per the original lease.
  • Term: Start and end dates of the sublease.
  • Rent: Amount, payment schedule, and payment method.
  • Liability: The Sublessee’s liability for damages, with the Sublessor ultimately responsible for obligations to the landlord.
  • Authorized Occupants: List of individuals authorized to reside in the rental unit.
  • Security Deposit: Maximum security deposit limits (one month’s rent for leases under one year; a reasonable amount for longer leases).
  • Return of Security Deposit: Landlords must return any unused portion of the security deposit within 30 days after the lease term ends or the tenant vacates.
  • Lead-Based Paint Notice: Required for properties built before 1978.
  • Inventory of Included Items: List of items included in the sublease.
  • Utilities: Specification of which utilities are paid by the Sublessee and which are paid by the Sublessor.
  • Parking Policy: Guidelines for parking for subtenants and guests.
  • Master Lease Inclusion: Attachment of the Master Lease and any exceptions noted.
  • Disputes: Procedures for resolving disputes, potentially including mediation or arbitration.
  • General Conditions: Statement affirming that the written agreement contains all terms and can only be modified in writing.
  • Landlord’s Consent: Description of how the landlord’s consent is sought.

Tax Implications of a Sublease

In New Mexico, sublessors may be subject to various taxes if they sublet a property for 30 days or less. The applicable taxes may include:

  • New Mexico State Gross Receipts Tax: 5.125%
  • City of Albuquerque Lodgers’ Tax: 5%
  • City of Albuquerque Hospitality Fee: 1%

Some cities may also require registration or permits for short-term rentals, with varying costs and processes.

Statutes

FAQs

Yes, in New Mexico, a tenant needs explicit written consent from their landlord to sublet their apartment. The law does not inherently grant tenants the right to sublet, and landlords can deny requests based on lawful and nondiscriminatory reasons.

A New Mexico sublease agreement should include the names of the parties, rental unit location, term of the sublease, rent details, liability clauses, authorized occupants, security deposit information, and a lead-based paint notice if applicable. It should also outline utilities, parking policies, and dispute resolution methods.

In New Mexico, if a sublessor rents out a property for 30 days or less, they may be subject to state and local taxes, including the New Mexico State Gross Receipts Tax and local lodging taxes. For example, in Albuquerque, the total tax rate can reach 11.125% when combining state and local taxes.

In New Mexico, landlords must return any unused portion of a security deposit within 30 days after the lease term ends or the tenant vacates the rental unit, whichever is later.

If a tenant requests permission to sublet and does not receive a response from the landlord within 30 days, they can assume that the landlord agrees to the sublease. However, it is always best to have written consent to avoid any potential disputes.

Yes, after granting permission to sublet, a landlord in New Mexico has the right to reject a proposed subtenant if they are deemed unqualified, such as having a poor credit score or a criminal history.

For leases shorter than one year, the maximum security deposit in New Mexico is one month’s rent. For leases of one year or longer, the security deposit must be reasonable, with no specific maximum set.

Yes, subletting is legal in New Mexico, but it is contingent on the terms of the original lease. If the lease prohibits subletting, tenants cannot rent out the property without the landlord’s permission.