Not every rental arrangement calls for a long-term commitment. In these cases, a month-to-month rental agreement, or tenancy at will, is often used when either a landlord or a tenant wants greater flexibility. A New Mexico month-to-month lease agreement provides this flexibility while following statewide landlord-tenant laws.
A month-to-month rental agreement differs from a fixed-term lease in that it automatically renews each month until either party provides notice to terminate. Below, we’ll dive into all that landlords need to know about a New Mexico month-to-month lease agreement.
Disclosures (3)
Landlords must disclose certain information to their tenants before signing a lease, per Federal and state law.
- Lead-based paint: Federal law requires landlords to disclose any known information about lead-based paint and its hazards in homes built before 1978. Landlords must also give their tenant a copy of the EPA’s lead safety pamphlet.
- Landlord identification: New Mexico law requires landlords to include their name and contact information with the lease agreement (N.M. Stat. § 47-8-19).
- Shared utilities: If the unit shares a utility meter with any other rental unit or a common area, landlords must detail how they divide the utility costs (N.M. Stat. § 47-8-20(F)).
Optional Disclosures and Addenda
While not required by law, including these optional disclosures helps to keep everyone informed and the tenancy running smoothly.
Asbestos: Discloses any asbestos present in the unit and gives tips to minimize exposure.
As-is addendum: Confirms that the tenant accepts the unit as-is and is especially helpful for units with known quirks or issues.
Bed bugs: Informs tenants of any known or suspected bed bug infestations in the unit or in adjacent units.
Late/returned check fees: Outlines the fees for late or returned rent checks. In New Mexico, landlords may charge up to 10% of the monthly rent as a late fee. While there is no specific limit on returned rent checks, typical returned commercial check fees are capped at $20 per check (N.M. Stat. § 47-8-15(D), (N.M. Admin. Code § 14.5.5.15)).
Medical marijuana use: Outlines the acceptable use of medical marijuana in the unit.
Mold: Discloses any known mold in the unit and provides information on treatment options. The mold disclosure also reminds tenants of their obligation to report any mold they find immediately.
Non-refundable fees: Lists any non-refundable fees that landlords charge during the tenancy at will.
Pet addenda: Shares any fees, policies, or restrictions regarding pets in the unit.
Shared utilities: Explains how landlords split utility costs if the rental shares a utility meter with any other unit or a common area.
Smoking: Informs tenants of the unit’s smoking policy, including any designated smoking areas that are on the property.
Notice to Terminate a Month-to-Month Agreement
When ready to terminate a rental agreement, there are certain parameters landlords must follow.
Required notice for tenant: Tenants must give a minimum of 30 days’ written notice to terminate a New Mexico month-to-month lease agreement (N.M. Stat. Ann. § 47-8-37(B)).
Required notice for the landlord: New Mexico landlords must also give a minimum of 30 days’ written notice to terminate the arrangement (N.M. Stat. Ann. § 47-8-37(B)).
Laws Governing Rent Increases
A New Mexico month-to-month lease agreement allows landlords to revisit rent more frequently; however, there are still rules they must follow when increasing the rent.
New Mexico does not have statewide rent control or stabilization laws, which means landlords can increase rents by any amount they deem necessary, provided the increase is not rooted in retaliation or discrimination.
Keep in mind that landlords must give their tenants at least 30 days’ written notice before the rent increase goes into effect.
Lease Violations and Eviction
If a tenant violates any part of the lease, landlords must know how to respond. Follow these rules to stay compliant with state law and get your rental back on track.
Missed rent payment: If a tenant misses a rent payment, landlords may issue a 3-day Notice to Pay or Quit (N.M. Stat. Ann. § 47-8-33(D)).
Lease violation: For other lease violations, landlords may issue a 7-day Notice to Cure or Quit (N.M. Stat. Ann. § 47-8-33(A)).
Lease abandonment: If a tenant abandons their lease before the end of its term, they may be financially responsible for the remainder of the term. New Mexico requires landlords to attempt to re-rent the unit as soon as possible, to help limit financial losses (N.M. Stat. Ann. § 47-8-6).
Self-help evictions: In New Mexico, self-help evictions are illegal. All evictions must go through the proper legal process.
Rent Payment Laws
State law controls various aspects of rent payment and collection. Here’s everything landlords need to know.
Rent control/stabilization: Rent control and stabilization laws do not exist in New Mexico.
Late rent fees: New Mexico allows landlords to charge up to 10% of the monthly rent as a late fee (N.M. Stat. Ann. § 47-8-15(D)).
Grace period: New Mexico law does not require landlords to offer a grace period for late rent payments.
Tenant’s right to withhold rent: In New Mexico, tenants must give their landlord 7 days to correct a health or safety issue in the unit. If the issue is not corrected, tenants may withhold a portion of the prorated daily rent. If the unit is uninhabitable, however, they may withhold all rent until the issue is fixed (N.M. Stat. Ann. § 47-8-27.1, 47-8-27.2).
Pet rent laws: There is no statewide limit on pet rent, but the fee must be reasonable and clearly stated in the lease template.
Security Deposits
New Mexico also has laws governing security deposits to protect both landlords and tenants.
Maximum amount: There is no specified maximum in New Mexico; landlords may charge a security deposit, and the amount must be reasonable and clearly outlined. If the lease agreement is for less than 1 year, however, security deposits are limited to 1 month’s rent (N.M. Stat. Ann. § 47-8-18(A)).
Deposit receipt: In New Mexico, landlords are not required to issue a receipt for a tenant’s security deposit payment.
Interest payments: New Mexico landlords are required to pay their tenants interest each year on security deposit payments exceeding 1 month’s rent (N.M. Stat. Ann. § 47-8-18(A)(1)).
Security deposit return: Landlords must return their tenant’s security deposit, minus any deductions, within 30 days of lease termination (N.M. Stat. Ann. § 47-8-18(C)).
Deductions: New Mexico law allows landlords to deduct from the security deposit to cover unpaid rent or excessive damages. If landlords withhold any deductions, they must provide tenants with an itemized list of deductions when they return the balance of the deposit (N.M. Stat. Ann. § 47-8-18(C)).
Property Access Laws
If you need to access the property, whether for routine maintenance or an emergency, follow these guidelines to remain compliant and respect your tenant’s privacy.
Advance notice: Generally, landlords should give their tenant at least 24 hours’ notice before entering the unit. Landlords should also make an effort to accommodate any time requests made by the tenant (N.M. Stat. Ann. § 47-8-24(A)(1)).
Immediate access: In an emergency, landlords may enter the property without giving any notice (N.M. Stat. Ann. § 47-8-24(B)).
Harassment: It is a form of harassment when landlords repeatedly enter a rental without just cause or without giving notice (N.M. Stat. Ann. § 47-8-24).
