New Mexico Landlord Tenant Laws

Contents

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DISCLAIMER

This article provides general information and is not legal advice. For accuracy and specific guidance on landlord-tenant laws, consult an attorney before making any decisions or taking action.

Overview

DEPOSIT

  • The maximum security deposit allowed in New Mexico for leases of less than 1 year is 1 months' rent.
  • For leases of a year or longer there is no limit on security deposit amounts - however, landlords must pay interest on any amount above 1 months' rent.
  • Landlords have 30 days to return the deposit after move out.
  • Landlords can deduct repairs beyond normal wear and tear, unpaid rent and utilities, and fees for early termination or cleaning.
  • Landlords must provide and itemized list of any deposit deductions.

RENT CONTROL

  • Rent control legislations are prohibited in New Mexico.
  • Landlords must give 30 days notice when increasing rent.

NOTICE OF ENTRY LAWS

  • Landlords in New Mexico are required to give their tenants at least 24 hours notice before entering an occupied dwelling.
  • The above is waived in the case of an emergency.

RE-KEYING LAWS

  • No statute.

RENTAL AGREEMENT

  • Both written and oral agreements are allowed in New Mexico for short term leases.
  • If the lease term is for longer than 1 year, the lease must be in writing.
  • It is always advisable to have a written lease, even for shorter term leases.

LATE FEES & GRACE PERIODS

  • Late fees in New Mexico cannot exceed 10% of the monthly rent
  • There is no legally required grace period.

SMOKING LAWS

  • Landlords have the right to prohibit or restrict smoking in their rental properties.

PET LAWS

  • No statute.

SECTION 1

New Mexico Landlord-Tenant Rights and Responsibilities

Below is an overview of some of the rights and responsibilities of both landlords and tenants in New Mexico.

Tenant’s Rights and Responsibilities

Rights

In New Mexico, tenants are entitled to:

  • Having requested repairs finished within a reasonable time after notifying the landlord.
  • Keep staying in the rental homes until their landlords have carried out the legal process of evicting them.
  • Receiving notice prior to the landlord making any changes to their rental homes.
  • Living in a rental property that satisfies the fundamental standards for habitability.
  • Using all of their rights without fear of reprisal.
  • Receiving equitable treatment devoid of any discriminatory treatment.
  • Receiving appropriate notice when a landlord wants to alter the terms of the lease or rental agreement.
  • Receiving their security deposit back, minus allowed deductions.

Responsibilities

  • When a renter in New Mexico wishes to vacate the property they rent, they must give notice to the landlord.
  • When leaving the property for an extended period of time, tenants in New Mexico are expected to notify the landlord.
  • Tenants in New Mexico are expected to maintain their rented property in compliance with the terms of the rental agreement.
  • Renters in New Mexico are expected to give their landlord reasonable access so they can do duties like unit inspections.
  • Tenants in New Mexico are obliged to follow the terms of the rental agreement, including paying the security deposit.
  • Renters in New Mexico are expected to pay both the rent and the security deposit upon request.
  • Renters in New Mexico are expected to minimize noise and not bother other tenants or neighbors.  

Landlord’s Rights and Responsibilities

Rights

Landlords in New Mexico have the right to:

  • Get the appropriate notice from a renter wishing to leave their rental property.
  • Modify the written rental agreement as long as the renter consents.
  • Receive notice of maintenance problems from their renter.
  • Terminate the lease and evict a renter if they violate the terms of the lease, refuse to pay the arrears, or cause substantial damage beyond normal wear and tear.
  • Request a deposit as security.

Responsibilities

Likewise, New Mexico landlords are expected to

  • Respect the terms stated in the rental or lease agreements.
  • As per the New Mexico Warranty of Habitability, furnish the tenant with livable renting circumstances.
  • Give the tenant enough warning before you access the leased property.
  • Make all recommended fixes as soon as possible.
  • Follow due process when evicting a troublesome tenant.

Sources: A Comprehensive Guide to Landlord-Tenant Law in New Mexico | New Mexico Legal Aid, Resource Guide – Landlord-Tenant Law | New Mexico Courts (.gov).

Required Notices Before Entry

Are landlords in New Mexico required to give notice before entering the property?

Yes. Landlords in New Mexico are required to give their tenants at least 24 hours notice before entering the property. This period may be extended, but not shortened if specified in the leasing agreement. (§ 47-8-24(A)(1) and (2))

Are landlords in New Mexico allowed to enter the property to conduct maintenance and repairs?

Yes. Landlords are allowed to access occupied rental properties with the tenant's permission in order to carry out repairs and maintenance. Landlords must give at least 24 hours notice before performing the entry unless entering to perform repairs or services within seven days of a tenant’s request, or in case of an emergency.  (§ 47-8-24(A)(1) and (2))

Late Fee for Rent and Grace Periods in New Mexico

In New Mexico, landlords who do not receive their rent payments on time may impose late fees. The late fee must be reasonable, and can either be imposed as a fixed late fee or as a percentage of the rent. Either way late fees in New Mexico cannot exceed 10% of the monthly rent (NMSA § 47-8-15(D)).

SECTION 2

New Mexico Rent Increase Laws

Landlords are free to set rents in line with fair market rates and routinely increase them with proper notice. Rent payments should made by tenants as per the lease agreement (§ 47-8-15(B)).  

Does New Mexico Have Rent Control Laws?

Rent control legislations are prohibited in New Mexico, as well as in local governments and municipalities (NMSA § 47-8A-1). This implies that landlords are free to set the rent for their leases at any amount they like.

Notice Required to Raise Rent in New Mexico

According to New Mexico law, if the tenant is on a month-to-month lease, landlords should give 30 days' notice in advance of any rent increase. This notification must be in writing in order to lawfully inform the tenant of the upcoming change in their rental amount. For rental agreements that are less than month-to-month, the length of one rental period suffices for sufficient notice.  (§ 47-8-15(F))

Landlords that want to raise rent on year-long contracts must give tenants the same notification requirements. Renters must receive this notice 30 days before the lease expires so they have time to choose whether to accept the new conditions or find another place to stay. (§ 47-8-15(F))

Limitations to New Mexico Rent Increase Laws

In New Mexico, a landlord cannot raise the rent if it is done in response to a protected tenant action, such as requesting repairs. Also, it's prohibited if the rent increase is done in a way that discriminates against one of the protected classes specified in the Fair Housing Act. It's also important to note that landlords cannot raise rent in the middle of a lease's fixed term (unless otherwise specified in the lease agreement).

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SECTION 3

New Mexico Rental Agreement Laws

A lease agreement is a legal document that the landlord and tenant sign allowing the tenant to occupy the real estate as a place of residence in exchange for rent. In the paper, the permitted occupant, the area they have access to for dwelling space, and the rules governing living there are all listed.

Additionally, it's important to note that all of New Mexico's rental rules are generally unbreakable by leases.  

Are Oral Lease Agreements Allowed In New Mexico?

Yes, both oral and written agreements are allowed and enforecable in New Mexico (N.M. Stat. Ann. § 47-8-10(C)), however, they are limited to one year or less.

If the lease term exceeds one year, the agreement must be in writing to be enforceable under the Statute of Frauds (N.M. Stat. Ann. § 47-1-1).

For oral leases, the same legal obligations apply as for written leases, such as the duty to maintain the property, payment of rent, and other standard lease terms.  (N.M. Stat. Ann. § 47-8-1 to § 47-8-52)

What Should Be Included in a New Mexico Lease Agreement?

Here are some of the key components that should be included in a New Mexico lease agreement to ensure a smooth and fair rental experience for all parties involved.

  • Details of both parties involved.
  • Description of the property and relevant disclosures
  • The lease terms and conditions
  • Details concerning rent and security deposit(s)
  • Both parties’ responsibilities concerning maintenance and repairs
  • Details about available utilities and services, with both parties’ responsibilities concerning maintenance.
  • Conditions surrounding early termination and lease renewal
  • Additional clauses regarding rent increase, subletting, property use, renovation and alterations.

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SECTION 4

New Mexico Tenant Deposit Laws

What Is The Maximum Security Deposit Amount In New Mexico?

According to New Mexico's security deposit legislation, the maximum security deposit limit for leases of less than a year is one month's rent.

However, landlords may request a larger deposit for annual or longer leases. But, if the security deposit exceeds one month’s rent, the landlord must pay interest on the excess amount.

(NMSA § 47-8-18(A)(2))

Are Pet Deposits Allowed In New Mexico?

There is no specific statute limiting pet fees and deposits in New Mexico.

Although there's no legal limit on how much landlords can charge for pet deposits, they must disclose this cost to tenants in the lease agreement to prevent misunderstandings.

What Can Landlords Deduct From The Security Deposit In New Mexico?

A New Mexico landlord may remove money from a tenant's security deposit under specific conditions specified by the state's rental and landlord-tenant statutes, including:

  • Unpaid rent
  • Clearing unpaid bills (e.g., unpaid utilities or repair work)
  • Cover lease violations
  • Damage beyond normal wear and tear

(NMSA § 47-8-18(C))

Are Landlords Required To Provide An Itemized List Of Security Deposit Deductions In New Mexico?

Yes. Landlords must provide an itemized written list of deductions from the security deposit within 30 days of the termination of the rental agreement or tenant’s departure, whichever is later. (NMSA § 47-8-18(C))

How Must Landlords Hold Security Deposits In New Mexico?

The security deposit should be kept in a separate interest-bearing account. This is especially important for larger deposits (greater than one month's rent) for leases longer than one year as the landlord is required to pay interest on any deposit amount that exceeds one month's rent limit in this scenario.

Failing to do so could put the landlord in legal hot water and lead to conflicts with the tenant if they decide to keep the deposit withheld.

How Long Do Landlords Have To Return Security Deposits In New Mexico?

Landlords have 30 days to return the tenant's security deposit under New Mexico's security deposit policy upon lease termination. If there were any deductions made, a documented declaration from the landlord detailing the deductions made, together with their respective amounts, is required to be given to the tenant.

(NMSA § 47-8-18(C))

Do Landlords Need To Pay Interest On Security Deposits In New Mexico?

Yes, landlords must pay interest on any portion of the security deposit that exceeds one month’s rent for annual rental agreements. The interest rate is equal to the passbook interest permitted by the federal home loan bank board for savings and loan associations in New Mexico. Interest is not required for rental agreements shorter than one year or for deposits that do not exceed one month's rent.

(NMSA § 47-8-18(A)(1))

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SECTION 5

New Mexico Eviction Laws and Process

New Mexico residents are well-protected against eviction; the state's legal structure provides both tenants and landlords with clear guidelines and essential rights.

Grounds for Eviction in New Mexico

In the state of New Mexico, landlords are required to provide legitimate legal justification before beginning an eviction. According to New Mexico law, there are various justifications for filing an eviction action, such as:

Non-Payment of Rent

In New Mexico, not making rent payments by the deadline is a frequent cause of eviction. Landlords have to show that the rent is overdue. They also have to provide the tenant the appropriate notice. In most leases, the landlord gives you a grace period—typically three days—to collect rent before it becomes past due.

Lease Violations

Different breaches can be considered lease violations. Any damage, such as scuffed walls or damaged carpets, that goes beyond normal wear and tear may raise some red flags. Beyond the permitted occupancy limit is an additional frequent infraction. The terms of the lease should be extremely specific from the landlord. This feature makes tenant obligations clear; it's no longer a guessing game.

Illegal Activities

It is a serious infraction to carry out illicit activities on the rental property. Drug dealing is an example of criminal behavior that justifies forcible eviction from a property. Since criminal behavior is by its very nature, New Mexico permits landlords to file for eviction at any time. This situation calls for the provision of a three (3)-day notice of substantial violation of the rental agreement. The unlawful behavior must be something that the lease expressly forbids or be against the law in the state in question.

End of Lease Term

Landlords have the right to begin the eviction procedure if a tenant refuses to vacate after their contract expires. To terminate the lease, landlords must give the required notice. They can also let the tenant know that it won't be extended. Even if they provided advance warning, landlords still have to follow the correct eviction procedures after the lease expires.  

New Mexico Eviction Notices

The following kinds of notices are required by New Mexico law when a tenant has broken any of the provisions of the lease or has not complied with the rental agreement:

Non-Payment Of Rent: 3-day Notice to Pay or Quit

If the tenant fails to pay rent when due, the landlord can give a written notice stating that the rental agreement will terminate if the rent is not paid within three days.  (§ 47-8-33(D))

For Lease Violations: 7-day Notice to Cure or Quit

Should a renter violate the terms of the lease landlords can give a 7-day notice to cure or quit which allows the tenant 7 days to remedy the infraction or leave the premises. The landlord may continue with eviction proceedings if they don't comply within this time frame. (§ 47-8-33(A))

Repeated Lease Violations: 7-Day Unconditional Quit Notice

If the tenant commits a second material breach within six months of the first, the landlord can terminate the rental agreement with a written notice giving the tenant seven days to vacate, without the opportunity to remedy the breach. (§ 47-8-33(B))

Unconditional Termination: 3-Day Notice To Quit

If the tenant or another person in the dwelling unit commits a substantial violation (e.g., engaging in criminal activity), the landlord must provide a written notice specifying the violation and stating that the rental agreement will terminate in three days. (§ 47-8-33(I))

Defenses Against Eviction In New Mexico

  • Domestic Violence (§ 47-8-33(J)): If the tenant is a victim of domestic violence, they may raise this as a defense against eviction under Subsection I. The eviction will be barred if the tenant has secured or filed for a temporary domestic violence restraining order.
  • Lack of Knowledge (§ 47-8-33(K)): The tenant can defend against eviction by proving they did not know, and could not have reasonably known or prevented, the violation committed by someone else.
  • Self-Defense (§ 47-8-33(L)): If the tenant took reasonable and lawful actions in defense of themselves, others, or their property, this can be a defense against eviction.

New Mexico Eviction Process

Below is an overview of a legal eviction process in New Mexico, according to the state eviction laws.

Landlord Establish Valid Reasons for Eviction

A landlord in New Mexico may file for eviction for a variety of reasons, including failure to pay rent, breaking the conditions of the lease, causing damage to the property, engaging in unlawful activity, or the lease term having expired.

Landlord Send the Required Notice

The landlord must give the tenant written notice prior to starting an eviction, outlining the basis for the eviction as well as the precise amount of time the tenant has to fix the problem or leave the property. Depending on the cause of the eviction, the notice period may change.

Landlord Files an Eviction Case

The landlord may file a "unlawful detainer" action, or eviction litigation, in the relevant New Mexico court if the tenant does not resolve the matter or leave the property within the allotted notice period. There will be a chance for the tenant to react and make their case.

Court Hearing and Judgment

Both the landlord and the tenant will have the chance to offer arguments and supporting documentation in court if the eviction case proceeds. In the event that the landlord wins, the court may grant a judgment for possession, enabling the landlord to reclaim ownership of the property.

Sheriff's Execution

Following the acquisition of a possession judgment, the landlord is required to ask the court for a writ of restitution, which gives the local sheriff's office the authority to evict the tenant if they refuse to leave. It will be the sheriff who oversees the actual eviction procedure.

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SECTION 6

New Mexico Rental Application Laws

Below are some of New Mexico's laws pertaining to application fees and tenant screening for rentals.

Maximum Rental Application Fee In New Mexico

New Mexico does not have a specific state law that caps or regulates the amount a landlord can charge for rental application fees. This means that landlords have discretion in setting the amount. However, fees must be reasonable and directly related to the cost of processing the application, such as background checks and credit reports.

Additionally, application fees in the state are non-refundable, regardless of the outcome of the application process. (N.M. Stat. Ann. § 47-8-1 to § 47-8-52)

Fair Housing Act In New Mexico

Title 24 USC § 3601-3607 bans discrimination in housing on the grounds of race, color, religion, gender, national origin, familial status, and handicap. Additionally, the state statute of New Mexico (NMSA § 28-1-7(G)) includes the following protected classes: pregnancy, marital status, ancestry, and gender identity.

In New Mexico, it is illegal to request any information on rental application forms that could be used to discriminate against potential tenants.  

Tenant Screening Laws In New Mexico

In New Mexico, tenant screening laws primarily fall under the New Mexico Uniform Owner-Resident Relations Act. While this act provides general guidelines for landlord-tenant relationships, there are a few key considerations for tenant screening:

  1. Fair Housing Laws: Landlords must comply with both federal and state fair housing laws, which prohibit discrimination based on race, color, national origin, religion, sex, familial status, disability, ancestry, sexual orientation, and gender identity. This means tenant screening processes must be applied equally to all applicants.
  2. Accuracy and Privacy: While New Mexico law does not have specific statutes regarding the accuracy or privacy of tenant screening reports, landlords must comply with federal laws such as the Fair Credit Reporting Act (FCRA). The FCRA requires landlords to obtain the applicant's consent before running a credit check and to provide an adverse action notice if the tenant is denied based on the report.
  3. Adverse Action Notices: If a landlord decides to deny an application or take other adverse actions (e.g., requiring a co-signer or higher deposit) based on information in a credit report or background check, they must provide the applicant with an adverse action notice. This is required under the FCRA.
  4. Disclosure of Screening Criteria: While New Mexico does not specifically mandate the disclosure of screening criteria, it is generally advisable for landlords to inform applicants about what factors will be considered during the screening process (e.g., credit history, rental history, criminal background) to ensure transparency and avoid potential disputes.
  5. Tenant Application Fees: As mentioned earlier, New Mexico does not cap rental application fees, but landlords should ensure that any fees charged are reasonable and related to the actual cost of screening.

For detailed tenant screening practices, landlords should refer to:

Landlords should also be aware of any local ordinances that might affect tenant screening practices in specific cities or counties within New Mexico..

Rejecting an Application In New Mexico

Federal law requires landlords to tell tenants if their application is denied. In this notice, the renter is intended to be informed of the following:

  • Their application was turned down.
  • The specific cause(s) for the rejection
  • Provide the name and email address of any credit reporting agencies that were consulted during the decision-making process.

What to Include In A Rental Application In New Mexico

To make the rental application process effective, here is a list of crucial request to include in your New Mexico rental applications:

  • Personal information
  • Details about employment, such as the name of a current employer
  • Income details
  • Personal references
  • Credit history
  • Rental history
  • Space for signature granting written consent for a credit check

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SECTION 7

New Mexico Laws Around Breaking a Lease for Landlords and Tenants

A lease agreement is a short-term, binding legal agreement. Therefore, breaking it often has detrimental financial and legal repercussions.

Having said that, there are exceptions to this blanket rule. Under certain conditions, New Mexico landlord-tenant law may allow tenants to terminate their lease early.

Notice Requirements to End a Rental Lease in New Mexico

According to the terms of the New Mexico landlord-tenant statutes the lease can be ended by either party using the following kinds of written notice:

  • Notice Required to Terminate Fixed Term Tenancy: No notice is required as the lease simply expires.
  • Notice Required to Terminate a Month-to-Month Tenancy: 30 days written notice prior to the periodic rental date specified in the notice. (§ 47-8-37(B))
  • Notice required to Terminate a Week-to-Week Tenancy: Seven days written notice with the termination date specified in the notice (§ 47-8-37(A))

Legally Valid Reasons For Breaking A Lease In New Mexico

Here are some of the acceptable justifications that allow a tenant to break a lease without incurring penalties in New Mexico:

  • The tenant is a victim of sexual or domestic abuse.
  • The tenant is denied the right to a safe and habitable rental unit.
  • Landlords invade tenant’s privacy or harass them.  
  • The death of the tenant.
  • The lease is void, illegal, or unenforceable.
  • The tenant was subjected to retaliatory actions by the landlord after they exercised their rights, like calling for a repair or filing a complaint with the government.
  • The tenant has to relocate due to a permanent change of military station
  • There's a clause for an early termination in the lease agreement.

SECTION 8

New Mexico HOA Laws

Below is an overview of some New Mexico HOA laws that often apply to homeowners associations in the state:

New Mexico Homeowners Association Act

The New Mexico Homeowners Association Act, Chapter 47, Article 16 of the New Mexico Statutes, governs homeowner's associations in New Mexico. It applies to unit owners in a neighborhood created by a formal declaration. (New Mexico Homeowners Association Act)

New Mexico Nonprofit Corporation Act

The state of New Mexico regulates nonprofit corporations under the Nonprofit Corporation Act. It controls their organizational structure and procedures.

Suppose a HOA is formed as a nonprofit organization (which is the case with the majority of New Mexico homeowner associations). In that instance, it is regulated by this legislation. (New Mexico Nonprofit Corporation Act)

New Mexico Condominium Act

This act, which was passed to create a regulatory framework for condominium incorporation, liens, interest allocation, common expenses, and voting privileges, also addresses association management and functions and purchaser protection. It is applicable to all condominiums in the state of New Mexico that were formed after May 19, 1982. (New Mexico Condominium Act)

New Mexico Building Ownership Act

As long as the majority of the residents have not passed a resolution to be subject to the new Condominium Act, the New Mexico Building Ownership Act governs condominiums established before May 19, 1982. (New Mexico Building Ownership Act)

New Mexico Human Rights

This law protects residents of New Mexico's right to equitable and fair access to housing opportunities. The law states that no homeowners association may treat any resident or prospective homeowner unfairly on the grounds of ancestry, spousal connection, physical or mental disability, race, sex, national origin, color, sexual orientation, religion, or gender identity as well as any other factor. (New Mexico Human Rights)

SECTION 9

New Mexico Squatters Rights Laws

Squatters in New Mexico have legal ways to take ownership of land that was once owned by someone else through adverse possession. As long as the squatters fulfill specific requirements, these adverse possession rules permit the transfer of ownership.

According to New Mexico squatter rules, before being eligible for any kind of adverse possession, a person must live continuously on the land for ten years and pay property taxes for that entire period.

Below are the requirements of the possession that would allow someone to file an adverse possession claim. It's important to note that every requirement must be satisfied for a successful claim.

Requirements to Make an Adverse Possession Claim

To effectively submit an adverse possession claim in New Mexico, a squatter must meet the following criteria:

Hostile possession

Despite its harsh connotation, hostile possession simply refers to an occupant who occupies a piece of property with or without the original owner's legal consent. This can apply to someone who knows the property is owned by someone else or to someone who believes they are the legitimate owner because of a forgery of a deed or rent agreement.

Active possession

If a squatter physically resides on the property and uses it as their own, repairing and enhancing the structure or land, they may be able to assert active possession.

Open and notorious possession

Squatters who live on the land in an evident manner, rather than trying to hide their presence, are considered to be in open and notorious possession. It must be evident to neighbors and onlookers that someone lives there.

Exclusive possession

This one is really simple: the squatter needs to be the only occupant of the land. The squatter cannot cohabit the property with the original owner or with another squatter group.

Continuous possession

If the squatter and/or their descendants have lived continuously on the land for a predetermined period of time, they may be able to claim continuous ownership.

In New Mexico, squatters who move into a property must live there for ten years straight and pay property taxes during that time. This is known as continuous possession.

SECTION 10

New Mexico Landlord Tenant Legal Resources

Below, you’ll find some helpful New Mexico landlord–tenant law resources:

Documents and Forms

New Mexico Landlord Tenant Legal Resources

New Mexico State Agencies & Regulatory Bodies

New Mexico Housing Authorities

New Mexico Realtor and Landlord/Tenant Associations

DISCLAIMER: This article provides general information and is not legal advice. For accuracy and specific guidance on landlord-tenant laws, consult an attorney before making any decisions or taking action.