The New Mexico residential lease agreement (“rental agreement”) formalizes an agreement between a landlord and tenant to rent real property in exchange for a fee. Common terms and conditions included are the length of the occupancy, the amount of the periodic payment, and restrictions on the use of the property.
New Mexico Lease Agreement Disclosures
The below disclosures are required for all or some residential lease agreements in New Mexico.
Landlord’s Name & Address
Applicable to all rental units in New Mexico.
Any individual authorized to perform obligations under the Uniform Owner-Resident Relations Act, including the landlord and owner must disclose their name and address so future legal notices and demands that are sent by the tenant can be properly delivered. Generally, this information is provided in the rental agreement and shall be provided to the tenant in writing at or before the commencement of the tenancy.
Late Fee Disclosure
Applicable to any unit charging late fees in New Mexico.
Late fees in New Mexico must be outlined in the rental agreement to be enforceable, including the amount of the fee and the date it is assessed. This fee may not exceed 10% of the overdue balance.
The below is an example of a late fee section:
LATE FEE. If rent is not paid by the due date outlined in this lease, a late fee of ___% or $___ will be assessed to the balance after notice of late payment is provided.
Lead-Based Paint Disclosure
Applicable to any rental units built prior to 1978.
It is a federal law in the United States that any home built prior to 1978 must disclose the risks posed by lead-based paints. This law requires landlords in New Mexico to:
- Fill out and attach this lead-based paint disclosure form to the lease agreement.
- Provide the tenant with an Environmental Protection Agency (EPA)-approved pamphlet about the dangers of lead-based paint.
- Provide additional records or reports about the presence or hazards of any known lead-based paint in the unit. For multi-unit buildings with common areas, this includes information from building-wide evaluations.
Optional Disclosures & Addendums (Recommended)
The below lease agreement disclosures and addendums are not required by New Mexico law. These disclosures can be helpful to include to help reduce future conflicts with tenants or reduce legal liability for landlords.
|Optional Disclosure||How the Disclosure is Helpful|
|Asbestos||This disclosure informs tenants if there is asbestos at the property. If there is asbestos a tenant can take certain precautions to minimize the chance of disturbing the asbestos fibers.|
|Bed Bugs||If the rental unit has a history of infestation, landlords should provide information on how to handle a bed bug infestation. This disclosure notifies the tenant of their obligation to cooperate with bed bug prevention and immediately report any sign of infestation to the landlord.|
|Medical Marijuana Use||Inform tenants if medical marijuana use on the property is permittable. Some state laws allow landlords to restrict marijuana usage to non-smoking methods only or inform tenants of designated smoking areas to not interfere with other tenants’ enjoyment of the premises.|
|Mold Disclosure.||Informing the tenant of the current mold status of a property protects the landlord against future liability of mold damages.|
|Move-in Checklist||A move-in checklist holds the tenant accountable for future damages that they may cause.|
|Non-Refundable Fees||A non-refundable charge must be written in the lease agreement. If a non-refundable charge is not written in the lease, the tenant may be subject to a refund upon termination of the lease.|
|Shared Utilities Arrangements||For rental units with shared utilities, a landlord should disclose the specifics of how they are shared, and how each party’s bill is calculated. Providing this information to tenants will give them a reasonable expectation of what they owe each month.|
|Smoking||Inform tenants of designated smoking areas to not interfere with other tenants’ enjoyment of the premises.|
Consequences of Not Including Mandatory Disclosures
Disclosures outline the important health, safety, and property information and vary by state. If a landlord does not provide the tenant with the federally or state-mandated disclosures, they could face legal repercussions or monetary penalties.
If a landlord fails to disclose the lead-based paint hazard disclosure, they can face fines of up to $18,364 per violation. (24 CFR § 30.65)
It’s best to check with your local and state laws on which disclosures you must provide to your tenant.