A New Mexico lease agreement is a legally binding contract between a landlord and tenant that outlines the terms of renting a residential property. From leasing a Santa Fe adobe, an Albuquerque apartment, or a single-family home elsewhere in the state, having a clear written lease helps prevent misunderstandings and ensures complete compliance with New Mexico’s landlord-tenant laws.
Disclosures (3)
Landlords in New Mexico are required to provide specific information to tenants before a lease begins. Include the following disclosures in the lease or provide them in writing:
- Lead-based paint disclosure: Federal law requires landlords to disclose any known lead-based paint or hazards in properties built before 1978 and provide tenants with the EPA pamphlet, “Protect Your Family from Lead in Your Home.”
- Owner/Manager identification: Landlords must disclose in writing the name, address, and telephone number of the person authorized to manage the property, as well as the owner or their agent responsible for receiving legal notices and service of process (NMSA § 47-8-19).
- Shared utilities: If multiple tenants are sharing utility costs, upon request from the tenant, the landlord must disclose the method used to calculate utility charges (NMSA § 47-8-20(F)).
Optional Disclosures and Addenda
Not every lease requirement comes from state law. Some disclosures and addenda are optional, but adding them can set clear expectations and prevent misunderstandings down the road. In New Mexico, landlords often choose to include the following:
Mold disclosure: Especially in older homes or high-altitude areas.
As-is addendum: Useful for properties with known quirks or deferred maintenance.
Smoking policy: Clearly outlining whether tenants are permitted to smoke on the property and, if so, where.
Pet addenda: Stating rules, deposits, and any breed or weight restrictions in writing ensures tenants understand their responsibilities regarding animals on the property.
While not required, these optional addenda can go a long way towards protecting both landlords and tenants. By spelling out policies up front, you reduce the risk of conflict and make responsibilities crystal clear.
Consequences of Not Including Mandatory Disclosures
Leaving required disclosures out of a lease can create serious problems for landlords. It can open the door to legal penalties, delay the eviction process, or limit a landlord’s ability to enforce parts of the lease.
For instance, skipping the lead-based paint disclosure can lead to federal fines. If a landlord doesn’t share their management contact information, delivering legal notices becomes more complicated, which can slow things down in court.
Security Deposit Regulations in New Mexico
New Mexico has clear rules governing how landlords handle security deposits.
Maximum amount: In New Mexico, landlords may charge a security deposit of up to 1 month’s rent for rental agreements lasting less than 1 year (NMSA § 47-8-18(A)). However, for leases of a year or longer, there’s no statutory cap on the amount a landlord can collect.
Deposit receipt: New Mexico law does not require landlords to provide tenants with a receipt for their security deposit.
Interest payments: If a landlord collects a security deposit greater than 1 month’s rent for a lease lasting 1 year or more, they must pay annual interest on the excess amount (NMSA § 47-8-18(A)(1)).
Deductions: Landlords may deduct amounts for unpaid rent, damage beyond normal wear and tear, and other lawful charges under the lease. It’s best practice to document deductions thoroughly, keeping receipts, invoices, and photos to support the itemized statement. If a landlord fails to provide the itemized list within 30 days, they may lose the right to withhold any portion of the deposit (NMSA § 47-8-18(C)).
Rent Payment Regulations
Unlike a few states (like California or New York) that impose rent control, New Mexico gives landlords broad freedom to set rent without statewide or local restrictions. That doesn’t mean there are no rules. State law still outlines what landlords can and can’t do when it comes to late fees, grace periods, and tenants’ rights to withhold rent in certain situations. Key rent payment regulations include:
Rent control/stabilization: New Mexico does not have any statewide or local rent control or rent stabilization laws.
Late rent fees: Landlords in New Mexico may charge late fees as long as they are reasonable and do not exceed 10% of the monthly rent. Additionally, the New Mexico lease agreement must clearly state whether late fees are applicable (NMSA § 47-8-15(D)).
Grace period: New Mexico law does not require a mandatory grace period for rent payments. Unless the lease specifies otherwise, rent is due on the date stated in the lease.
Tenant’s right to withhold rent: Tenants may withhold rent or deduct repair costs if a landlord fails to address health or safety issues within 7 days after receiving written notice. Tenants can use this right to either terminate the lease or apply part of the rent toward making the necessary repairs themselves, up to the equivalent of 1 month’s rent (NMSA § 47-8-27.1, 47-8-27.2).
Rental Agreement Violations
When tenants break lease terms, New Mexico law sets out specific steps landlords must follow before ending a tenancy. These rules distinguish between different types of violations and outline notice periods that protect both landlord and tenant rights.
Lease violation: If a tenant violates the lease terms (other than nonpayment of rent), a New Mexico landlord must provide a 7-day written Notice to Cure or Vacate (NMSA § 47-8-33(A)). The notice gives the tenant 7 days to fix the violation or face lease termination. If the same violation happens again within 6 months, the landlord may issue a 7-day Unconditional Termination Notice (NMSA § 47-8-33(B)).
Missed rent payment: When a tenant fails to pay rent by the due date (or the end of any agreed-upon grace period), the landlord must deliver a 3-day written Notice to Pay or Quit before starting eviction proceedings (NMSA § 47-8-33(D)).
Lease abandonment: If a tenant moves out before the lease term ends, they are typically responsible for rent through the remainder of the lease or until the unit is re-rented (NMSA § 47-8-6). New Mexico law requires landlords to make reasonable efforts to re-rent the unit to mitigate damages.
Self-help evictions: Self-help evictions are illegal in New Mexico. Landlords cannot change locks, remove a tenant’s belongings, shut off utilities, or otherwise force a tenant out without going through the court eviction process. Violating these rules can expose landlords to liability.
Terminating a Lease
Ending a lease in New Mexico depends on the type of tenancy and the reason for termination.
Standard lease: Tenants with a fixed-term lease are generally bound to the agreement until the end date, but New Mexico law allows early termination in certain situations, such as when the landlord fails to maintain habitable conditions after receiving proper notice, or if the tenant is entering active military service under the federal Servicemembers Civil Relief Act (SCRA). Tenants may also negotiate an early release with the landlord.
Month-to-month: Either the landlord or the tenant may terminate the month-to-month lease by providing at least 30 days’ written notice before the end of the rental period (NMSA § 47-8-37).
Property abandonment: If a tenant leaves personal property behind after moving out, New Mexico law requires landlords to store the abandoned property for at least 30 days (NMSA § 47-8-34.1 (A)(1)).
Renewing a Lease
Required renewals: Landlords in New Mexico are not required to offer tenants lease renewals when a lease term ends. Landlords and tenants typically handle renewals through mutual agreement or by following renewal clauses in the original lease.
Notice requirements: In New Mexico, week-to-week tenancies require 7 days’ written notice, and month-to-month tenancies require 30 days’ written Notice to Terminate. For fixed-term leases, landlords don’t need to provide advance notice if they don’t plan to renew (NMSA § 47-8-37(A-C)).
Landlord’s Access to Property
Tenants have the right to privacy in their homes, but landlords also have legal rights to enter when necessary. New Mexico law balances these interests by setting clear rules for notice, emergencies, and prohibited behaviors like harassment.
Notice requirements: For non-emergency situations, landlords must provide at least 24 hours’ notice and enter at reasonable times (NMSA § 47-8-24(A)(2)).
Immediate access: Landlords may enter without prior notice in emergencies, such as situations involving immediate threats to health, safety, or property (NMSA § 47-8-24(B)).
Harassment: Entering without proper notice or abusing the right of access may be considered landlord harassment. Repeated violations can give tenants the right to terminate the lease or seek legal remedies (NMSA § 47-8-24(C)).
