New Mexico Residential Lease Agreement

Citation Methodology v2.0: All verified facts cited

Introduction

This guide provides a comprehensive overview of New Mexico residential lease agreement requirements, drawing from state statutes under the Uniform Owner-Resident Relations Act (UORRA) and federal law. The information herein is designed to help landlords and tenants understand their rights and obligations under New Mexico law.

Required Disclosures

Lead-Based Paint Disclosure (federal Requirement)

For properties built before 1978, federal law requires landlords to disclose the presence of known lead-based paint and/or lead-based paint hazards before a tenant signs a lease.^[1]

Specific Landlord Requirements Include:

• Provide the EPA pamphlet "Protect Your Family From Lead In Your Home" or a state-approved version**^[1]
• Disclose any known information about lead-based paint or lead-based paint hazards**^[1]
• Include a Lead Warning Statement in the lease explaining health hazards from lead exposure**^[1]
• Have both landlord and tenant sign an EPA-approved disclosure form**^[1]

Landlords must retain disclosure forms for three years from the date the tenancy begins.^[1]

Failure to comply can result in penalties of up to $21,018 per violation.^[1]

Exemptions include: leases for 100 days or less, housing for elderly or disabled persons (unless a child under six resides there), housing tested and found to be lead-paint free, and housing built after 1977.^[1]

Owner Information Disclosure

New Mexico law requires landlords to disclose in writing the name, address, and phone number of (1) the person authorized to manage the premises, and (2) the owner and/or person responsible for receiving notices and service of process.^[2]

This disclosure must be provided at or before the commencement of the tenancy.^[2]

Failure to comply relieves the tenant from the obligation to provide notice to the landlord as required by the Uniform Owner-Resident Relations Act.^[2]

Written Rental Agreement Copy

Any lease exceeding one year must be in writing under NMSA § 47-8-20.^[3]

For shorter lease terms, written agreements are strongly recommended but not legally required. However, some judiciary opinions suggest that without a written lease, the Uniform Owner-Resident Relations Act may not be enforceable.^[3]

Best practice: Landlords should provide tenants with a written rental agreement copy before move-in for all lease durations.

Security Deposits

Deposit Limits

New Mexico has specific requirements for security deposit amounts based on lease duration:

• For leases under one year: Limited to one month's rent maximum**^[4]
• For annual or longer leases: Must be "reasonable" with no specific statutory cap**^[4]

Security deposits are defined as reasonable amounts demanded by the landlord to be applied to recover damages caused to the premises by the tenant during the term of residency.^[4]

Interest Requirements

If the landlord demands or receives a deposit in an amount greater than one month's rent for an annual rental agreement, the landlord must pay the tenant annually interest equal to the passbook interest rate permitted to savings and loan associations in New Mexico.^[4]

Return Timeline and Documentation

Landlords must return security deposits within 30 days after the lease terminates.^[4]

If deductions are made, the landlord must provide a written, itemized list detailing all deductions within the 30-day period.^[4]

Failure to provide the tenant with a written statement of deductions and the balance due within 30 days of vacating can result in penalties.^[4]

Penalties for Improper Retention

A landlord who retains a deposit, or any portion thereof, knowing that retention to be in violation of NMSA § 47-8-18 is liable to the tenant for a civil penalty in the amount of twice the amount improperly withheld.^[4]

Allocation of Rent Payments

Unless agreed upon in writing by the landlord and tenant, a tenant's payment of rent may not be allocated to any deposits or damages.^[4]

Separate Account Requirements

New Mexico law does not require landlords to maintain security deposits in a separate bank account.

Rent Payment Terms

Grace Period

New Mexico law does not require landlords to provide a grace period for rent payment.^[5]

However, if a grace period is specified in the lease agreement, it must be honored.^[5]

Late Fees

Late fees in New Mexico cannot exceed 10% of the monthly rent.^[5]

The landlord must provide notice of the late fee charged no later than the last day of the next rental period immediately following the period in which the default occurred.^[5]

NSF (bad Check) Fees

New Mexico does not have a specified statutory service fee maximum for NSF (non-sufficient funds) or bounced checks under residential landlord-tenant law.^[6]

While late fees are statutorily capped at 10% of monthly rent, NSF fees would need to be reasonable and comply with general contract law principles. Landlords should specify NSF fees in the lease agreement.^[6]

Landlord's Right to Enter

Standard Entry Notice Requirement

Unless otherwise agreed upon in writing by the landlord and tenant, the landlord may enter the tenant's dwelling unit only after giving the tenant 24 hours written notification of intent to enter, the purpose for entry, and the date and reasonable estimate of the time frame of entry.^[7]

Emergency Entry

The landlord may enter the dwelling unit without tenant consent in case of an emergency.^[7]

Tenant Request for Alternate Times

Where the tenant gives reasonable prior notice and alternate times or dates for entry, and it is practicable and will not result in economic detriment to the landlord, the landlord shall attempt to reasonably accommodate the alternate time of entry.^[7]

Lease Termination and Eviction

Month-To-Month Tenancy Termination

Either the landlord or the tenant may terminate a month-to-month tenancy by giving written notice to the other at least 30 days prior to the periodic rental date specified in the notice.^[8]

Eviction for Nonpayment of Rent

For nonpayment of rent, the landlord must provide a 3-day notice to pay or quit.^[9]

This notice applies when a tenant fails to pay rent after any grace period established in the lease agreement.^[9]

The tenant can avoid termination by tendering the full amount due before the three-day notice period expires.^[9]

Eviction for Lease Violations

First Violation: For an initial material noncompliance with the rental agreement, the landlord must deliver a 7-day notice to cure or quit specifying the breach.^[10]

Repeat Violation: For a second lease violation within six months of the initial breach, the landlord may provide a 7-day notice to quit without opportunity to cure.^[10]

Substantial Violation: When a tenant knowingly commits a "substantial violation" on the premises, the landlord may issue a 3-day unconditional notice to quit.^[10]

Illegal Lockouts

Landlords may not change locks, remove tenant property, or attempt to evict the tenant without a court order. Self-help evictions are prohibited in New Mexico.^[10]

Tenant Remedies for Landlord Breach

Written Notice Requirement

When a landlord materially breaches the rental agreement, tenants must send a written 7-day notice in proper form to comply with NMSA § 47-8-27.1.^[11]

Available Remedies

Tenants may recover damages and obtain injunctive relief for any material non-compliance by the landlord with the rental agreement or other legal obligations.^[11]