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 Disclosures & Addendums
The following disclosure is required for all residential lease agreements in New Mexico.
- Landlord’s Name & Address – for all rental units.
- Late Fee Disclosure – for any unit charging late fees.
- Lead Based Paint Disclosure – for rental units built prior to 1978.
There are also a number of optional disclosures and addendums that help reduce future conflicts and/or legal liability in New Mexico.
Landlord’s Name & Address
Applicable to all rental units.
So that future legal notices and demands sent by the tenant can be properly delivered to the landlord, the name and address of either the landlord or the person authorized to act on the landlord’s behalf must be disclosed up-front (commonly done so in the lease agreement) .
Late Fee Disclosure
Applicable to any unit charging late fees.
Late fees in New Mexico must be outlined in the lease 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 following 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 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 following lease agreement disclosures and addendums are not required by New Mexico law in residential lease agreements, but either help reduce future conflicts with tenants or reduce legal liability for landlords.
- Medical Marijuana Use – it is recommended to state where marijuana use is and isn’t allowed on the property so that expectations are clear. New Mexico law allows landlords to restrict marijuana usage to non-smoking methods only or control where users can smoke so as to not interfere with other tenants.
- Move-in Checklist – it is recommended to provide an itemized list of damages to the property before move-in to make sure tenants are responsible for any serious damages that occur during the lease term. This can be attached to the lease agreement or signed as a separate document.
- Shared Utilities Arrangements – for rental units with shared utilities, it is recommended to disclose the specifics of how they are shared, and how each party’s bill is calculated, so that tenants have a reasonable expectation of what they owe each month.
- Bed Bug Disclosure – for rental units with a history of infestation, it is recommended to establish an understanding of the current status of bed bugs at the property in case of a future infestation and to provide information on the protocol for handling one.
- Asbestos Disclosure – for rental units in buildings built prior to 1981 (which are considered at-risk for asbestos), it is recommended to establish an understanding of any prior knowledge on the existence of asbestos on the property.
- Mold Disclosure – it is recommended to disclose the current mold status of a property in the lease to protect against future liability of mold damages due to tenant negligence during the lease term.