Maybe you’ve realized you no longer need your home gym or office and would rather rent out that bedroom to generate extra income. The first step is creating a room rental agreement in New Mexico to help you stay compliant, avoid disputes, and protect your investment.
Before you find a tenant and collect the first month’s rent, use this guide to understand the laws that govern your New Mexico lease agreement.
In this guide, we’ll explain the laws regulating your room rental agreement in New Mexico. We’ll also share tips from top landlords, including how you can use property management software to collect rent, streamline maintenance, and save time.
Room Rental Laws
Follow these landlord-tenant laws in New Mexico when you rent out a room in this corner of the Southwest:
- Provide safe, habitable housing.
- Notify tenants before entering their room.
- Avoid landlord harassment.
- Make all mandatory disclosures in your lease agreement.
After we discuss contract types, we’ll explain the legal guidelines that apply to your New Mexico room rental agreement.
Different Types of Room Rental Agreements in New Mexico
When creating a room rental agreement, you can use any of the following formats:
- Verbal agreement: Word-of-mouth contracts often lead to disagreements between landlords and tenants. We recommend using a written contract instead.
- Fixed-term lease: Because these written contracts specify start and end dates, they establish a stable tenancy for 6–12 months.
- Month-to-month lease: These “tenancy at will” agreements renew each month and give both parties the flexibility to terminate them at any time.
When selecting your lease agreement type, consider your relationship to the tenant, the tenancy’s length, and whether you prefer stability or flexibility.
Required Landlord Disclosures
To draft a room rental agreement in New Mexico, start by making these three mandatory disclosures:
- Lead-based paint: Federal law requires landlords to inform tenants about lead-based paint and lead-based paint hazards present in properties built before 1978 (42 U.S.C. § 4852d).
- Landlord’s identity: Give tenants either the landlord’s or property manager’s name, phone number, and address (N.M. Stat. § 47-8-19).
- Shared utilities: Landlords must explain how they divide shared utility costs when tenants ask (N.M. Stat. § 47-8-20).
The next step is to review the following New Mexico room rental agreement laws:
Security Deposit Rules
Maximum security deposit: If the room rental agreement is less than 1 year, landlords can charge up to 1 month’s rent. If the lease is for longer than 1 year, state law doesn’t cap the security deposit (N.M. Stat. § 47-8-18).
Security deposit receipt: You don’t have to provide security deposit receipts, but we recommend creating them.
Deduction tracking: New Mexico law requires landlords to provide tenants with a written, itemized list of deductions when they withhold any portion of the security deposit (N.M. Stat. § 47-8-18).
Security deposit return: Landlords must return the remaining security deposit balance, along with a list of deductions, within 30 days (N.M. Stat. § 47-8-18).
Pet deposits: State law doesn’t regulate pet deposits.
Rent Payment Rules
Late rent fees: If your room rental agreement includes a late fee, it can’t exceed 10% of 1 month’s rent. You also must notify tenants before applying the fee, no later than the last day of the next rental period (N.M. Stat. § 47-8-15).
Right to withhold rent: State law doesn’t give tenants the right to withhold rent. However, tenants may be able to follow New Mexico’s legal remedies if the landlord fails to maintain safe, habitable housing (N.M. Stat. § 47-8-27.1, 27.2).
Grace period: New Mexico doesn’t mandate a grace period.
Pet rent: You can collect a reasonable pet rent, but federal law prohibits you from collecting it for service animals or Emotional Support Animals (ESAs) (42 U.S.C. § 3601 et seq.).
Rent Payment Increase Rules
Rent payment increase frequency: For a month-to-month lease, landlords must give 30 days’ written notice before raising the rent. Landlords can’t increase rent in the middle of a fixed-term tenancy (N.M. Stat. § 47-8-15).
Rent payment increase maximum: State law doesn’t cap rent increases.
Rent control/stabilization: Local municipalities can’t enforce rent control policies (N.M. Stat. § 47-8A-1).
Room Rental Agreement Breaches
Failure to pay: When tenants fail to pay rent, landlords can terminate the lease and pursue eviction. But first, landlords must notify the tenant in writing and give them 3 days to resolve the issue before taking further action (N.M. Stat. § 47-8-33).
Lease violations: Landlords can initiate the eviction process by notifying the tenant of the breach and providing a 7-Day Notice to Cure or Quit (N.M. Stat. § 47-8-33).
Self-help evictions: New Mexico law strictly prohibits all methods of self-help evictions, including changing the locks and shutting off essential utilities (N.M. Stat. § 47-8-36).
Terminating a Room Rental Agreement
Month-to-month: Landlords can end a month-to-month room rental agreement in New Mexico by giving 30 days’ written notice (N.M. Stat. § 47-8-37).
Fixed-term: If either party terminates a fixed-term lease without a legal cause, they may face penalties.
Room abandonment: If a tenant abandons their room, landlords can take immediate possession of the unit. If the landlord finds a new tenant before the original agreement ends, the original lease ends when the new one begins (N.M. Stat. § 47-8-34).
Tenant’s right to terminate: Tenants may be able to end a lease early without penalty in the following circumstances:
- Fire or casualty damage (N.M. Stat. § 47-8-31)
- Habitability issues (N.M. Stat. § 47-8-22)
- Domestic violence or assault (N.M. Stat. § 47-8-33)
Landlord Access Laws
Immediate access: Landlords may enter a tenant’s room without the tenant’s consent only in an emergency (such as a flood) (N.M. Stat. § 47-8-24).
Landlord harassment: New Mexico prohibits landlords from repeatedly demanding entry, making unreasonable entry requests, or unlawfully entering a room (N.M. Stat. § 47-8-24).
Advance notice: State law requires you to give tenants 24 hours’ written notice (N.M. Stat. § 47-8-24).
Lease Agreement Renewal and Termination
Required renewals: Landlords aren’t required to renew a room rental agreement in New Mexico when it expires.
Required notice: Landlords must give at least 30 days’ written notice before terminating a month-to-month lease. For week-to-week leases, they must give 7 days’ written notice (N.M. Stat. § 47-8-37).
Month-to-month considerations: If a fixed-term lease expires and both parties continue the agreement, local authorities may treat the agreement as a month-to-month tenancy.
As a best practice, use property management software to automate your landlord responsibilities, stay compliant, and save time.
Room Rental Agreement New Mexico FAQs
What to include in a New Mexico room rental agreement?
Every room rental agreement in New Mexico must include the following:
- Required landlord disclosures
- Rent details
- Landlord and tenant responsibilities
- House rules
How do I legally rent out a room?
After you create a room rental agreement form, comply with all rental laws outlined in this article, including:
- Entry notice requirements
- Rent and security deposit laws
- Lease termination protocols
How to make a New Mexico room rental agreement?
Streamline the process with our simple, printable PDF template.
