A New Mexico residential lease agreement (“rental agreement”) is a legal contract between a landlord overseeing a residential property and a tenant who wishes to rent it. A residential lease may, on or before move-in, additionally require a security deposit from the tenant as assurance against future property damage.
These disclosures are required for some or all residential lease agreements in New Mexico:
| Disclosure | Applicable to |
|---|---|
| Landlord Name and Address | All Units |
| Late Fees | All Leases Charging Late Fees |
| Lead Paint | All Units Built Before 1978 |
Applicable to all New Mexico rentals.
New Mexico leases must contain the name and address of the landlord or authorized agent. This enables smooth communication of any important legal notice. This contact information is most often written in the lease agreement, for maximum convenience. The landlord has an obligation to notify the tenant in the event of a change in contact information. [1]
Applicable to any New Mexico lease charging late fees.
New Mexico will only enforce late fees agreed in the lease, including the fee amount and the timeline for charges. The state caps late fees at 10% of the overdue balance. [2]
This is an example of a late fee section:
LATE FEE. If rent is not paid by the due date outlined in this lease, a late fee of ___% or $___ will be assessed to the balance after notice of late payment is provided.
Applicable to any New Mexico rentals built before 1978.
For any property built before 1978, federal law requires that a New Mexico residential lease must contain a lead-based paint disclosure. This requires landlords to do the following:
The following lease agreement disclosures and addenda are not required by New Mexico law in residential lease agreements, but assist with tenant management and help limit landlord liability.
| Optional Disclosure | Purpose |
|---|---|
| Asbestos | Informs tenants about any asbestos hazards related to the property. Tenants can take precautions to reduce asbestos hazards by avoiding any disturbance of asbestos fibers. |
| Bed Bugs | Informs tenants whether the property or an adjacent unit has a history of suspected bed bug infestation, and reminds the tenant of the obligation to report suspected infestation immediately. |
| Medical Marijuana Use | Informs tenants about policy related to medical marijuana use on the rental property. Some state laws allow landlords to restrict marijuana usage to non-smoking methods only, or allow use only in designated smoking areas. |
| Mold Disclosure | Informs tenants about actual or suspected mold contamination on the property, along with any remediation efforts, to help limit landlord liability. |
| Move-in Checklist | Takes inventory of existing property damage, when the tenant takes possession of the rental property. This enables accurate deductions from the security deposit upon move-out. |
| Non-Refundable Fees | Charges not agreed by the tenant in the lease may be refundable upon lease termination. For New Mexico landlords to charge a non-refundable fee, it must be disclosed and agreed as such in the lease. |
| Shared Utilities Arrangements | Discloses how charges are billed to individual tenants, when multiple rental units share a utility meter for the whole building or property. This ensures tenants receive fair charges and understand what uses contribute to their bill. |
| Smoking | Informs tenants of designated smoking areas that do not interfere with the quiet enjoyment of other tenants. |
Some New Mexico cities, like Albuquerque, have more comprehensive rules than the statewide standard. Always check local laws.
Mandatory disclosures outline important health, safety, and property information for both landlord and tenant safety. A landlord who fails to provide federally or state-mandated disclosures could face legal consequences or monetary penalties, either from a tenant lawsuit or from state officials.
Failure to comply with the federal lead-based paint hazard disclosure risks fines of tens of thousands of dollars per violation.
…A. The owner or any person authorized to enter into a rental agreement on his behalf shall disclose to the resident in writing at or before the commencement of the residency the name, address and telephone number of:
(1) the person authorized to manage the premises; and
(2) an owner of the premises or a person authorized to act for and on behalf of the owner for the purpose of service of process and for the purpose of receiving and receipting for notices and demands.
B. The information required to be furnished by this section shall be kept current, and this section extends to and is enforceable against any successor, owner or manager…
…D. If the rental agreement provides for the charging of a late fee, and if the resident does not pay rent in accordance with the rental agreement, the owner may charge the resident a late fee in an amount not to exceed ten percent of the total rent payment for each rental period that the resident is in default. To assess a late fee, the owner shall 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…
How Long Can a Residential Lease Be in New Mexico? Depending on circumstances, in New Mexico it’s usually possible to have a lease of any length of time, as long as the length of the lease term is specific and agreed in writing by the landlord and tenant. Oral leases can almost never be for a term of more than one year. Read more » Is a Contract to Lease Binding in New Mexico? Yes, a contract to lease is legally binding in New Mexico. To be valid, a contract to lease may have to be written, especially for a fixed term over one year. Oral leases may be valid in some cases (especially when both parties later behave as though there’s an enforceable oral lease), but often have strict limitations on enforceability for things like length of the lease term. Read more » Do Lease Agreements Need to Be Notarized in New Mexico? No, lease agreements do not need to be notarized in New Mexico. A notary helps establish the identity of the people signing the lease, if there’s a claim of fraud, but a notary isn’t necessary for a lease to be valid. Read more » Can a Lease Automatically Renew in New Mexico? Yes, a lease can automatically renew in New Mexico. Most rental agreements will automatically renew when the initial tenancy period is over. Past this point, the lease becomes a month-to-month rental agreement, with the same basic terms and conditions otherwise as the original lease. In some cases, such as if rent is being paid weekly, the lease may become a week-to-week lease. Read more »
