The New Mexico sublease agreement is a legal contract that allows a tenant to rent out all or a portion of the property to a subtenant in exchange for regular payments.
Does a Tenant Need the Landlord’s Permission to Sublet in New Mexico?
A tenant does need the landlord’s explicit written consent to sublet in New Mexico as the law does not inherently give tenants the right to sublet. Even after consent is given, a landlord still has the right to reject a subtenant if they are unqualified, such as for having a poor credit score or criminal history.
Standardized New Mexico Sublease Agreements
A standard form can be used in New Mexico to create a sublease. Here’s what is generally included in a New Mexico sublease agreement:
- The Names of the Parties – The original tenant under the lease is named in the sublease and is called the “Sublessor.” The third party that is subleasing the rental unit is named in the sublease and is called the “Sublessee.”
- Rental Unit Location – The address for the rental unit as described in the original lease.
- Term – State the exact date of the sublease beginning and ending date.
- Rent – How much the rent is, when it needs to be paid, and how to pay it.
- Liability – The sublessee will be liable for any damages to the Sublessor. The Sublessor continues to have the ultimate responsibility to pay for any damages that impact the landlord as stated in the original lease agreement.
- Authorized Occupants – A list of the new subtenant(s) and those authorized to live in the rental unit including any policy about short-term guests.
- Security Deposit – In New Mexico, for leases that are shorter than one year, the maximum security deposit is one month’s rent. Leases one year or longer have no maximum security deposit, except it must be “reasonable.”
- Mobile Home Deposit – The maximum security deposit for a mobile home is one month’s rent for a standard unit and two months’ rent for a multi-wide unit.
- Return of Security Deposit – New Mexico landlords have 30 days after the lease term ends or the tenant vacates the rental unit, whichever is later, to return any unused portion of the security deposit.
- Lead-Based Paint Notice – Under Federal law, if the rental unit’s premises were built before 1978, the Sublessee must be given a written warning notice, called a Lead-Based Paint Disclosure.
- Inventory of Included Items – The list of items in the rental unit that are part of the sublease (furniture or appliances).
- Utilities – The utilities that are to be paid by the Sublessee and those that the Sublessor pays.
- Parking Policy – Where the subtenants and guests can park, including any fees assessed.
- Master Lease Inclusion – A copy of the Master Lease is attached to the sublease. If any exceptions in the Master Lease are not included they should be clearly stated in this section.
- Disputes – A description of how disputes between the Sublessor and Sublessee are to be settled, which may include mediation and binding arbitration to avoid more expensive legal proceedings.
- General Conditions – A statement that the written sublease agreement contains all of the agreements between the parties and can only be modified by written consent of the parties to the agreement.
- Landlord’s Consent – This section describes how the landlord is asked to consent (if consent is not already included in the Master Lease). Tenants may create a signed sublease that is conditional on being accepted by the landlord before the sublease becomes effective.
Tax Implications of a Sublease in New Mexico
In New Mexico, a sublessor may be subject to state sales, city, and county taxes if they sublet a property for 30 days or less. For example, in Albuquerque, taxes may include:
- New Mexico State Gross Tax Receipts – 5.125%
- City of Albuquerque Lodgers’ Tax – 5%
- City of Albuquerque Hospitality Fee – 1%