New Mexico Residential Lease Agreement
New Mexico lease agreement: deposit capped at one month's rent on a lease under a year, 24-hour entry notice, free to create. Attorney review available.
Introduction
A residential lease agreement is a legally binding contract that sets the terms under which a tenant rents a landlord's residential property: how much rent is due, how long the tenancy lasts, the security deposit, each party's responsibilities, and how the lease ends. In New Mexico the relationship is governed by the Uniform Owner-Resident Relations Act (UORRA), NMSA 1978 Chapter 47, Article 8, which calls the parties the owner and the resident. If your lease runs less than one year, New Mexico law caps the security deposit at one month's rent (NMSA 1978 Section 47-8-18). On a one-year-or-longer lease there is no dollar cap, but if the deposit exceeds one month's rent the owner must pay the resident annual interest on it. After the tenancy ends, the owner has 30 days to return the deposit or send an itemized written list of deductions; normal wear and tear can never be deducted. Before residency begins, the owner must disclose in writing the name, address, and phone number of the person managing the property and of the person authorized to receive legal notices (Section 47-8-19). To enter the unit, the owner must give 24 hours written notice stating the purpose and the estimated time of entry, unless the resident agrees otherwise. Attorney review is available as an option before you sign.
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Key Things to Know
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A residential lease agreement is a contract between a landlord (owner) and a tenant (resident) that sets the rent, term, deposit, and each party's duties, and it stays in effect until it ends under its own terms or state law.
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Security deposit cap and return: on a lease under one year the deposit cannot exceed one month's rent (NMSA 1978 Section 47-8-18). The owner must return it, or an itemized written list of deductions, within 30 days after the tenancy ends or the resident moves out, whichever is later. Normal wear and tear can never be deducted.
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Required written disclosures: before residency starts the owner must give the resident, in writing, the name, address, and phone number of the property manager and of the person authorized to accept legal notices (Section 47-8-19). Federal law also requires a lead-based paint disclosure for housing built before 1978.
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Entry notice: unless the resident agrees otherwise, the owner must give 24 hours written notice before entering, stating the purpose and the estimated date and time (Section 47-8-24).
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Late fees: an owner may charge a late fee of no more than 5 percent of the rent for each rental period the resident is in default (reduced from 10 percent by 2025 legislation), calculated on rent only, never on deposits or other fees. New Mexico law does not set a separate grace period before a late fee applies.
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Termination and rent increase notice: a month-to-month tenancy ends with at least 30 days written notice from either side (Section 47-8-37). A rent increase in a month-to-month tenancy also requires at least 30 days written notice, and a fee increase requires 60 days notice.
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Rent control: New Mexico state law is reported to preempt local rent-control ordinances (NMSA 1978 Section 47-8A-1), so there is no statewide or local rent cap to confirm before signing; check with your city for any current local rule.
Key decisions before you file
Before you file a Residential Lease Agreement in New Mexico, a few decisions shape the document: which option to choose and what each one means. The Residential Lease Agreement guide walks through them.
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New Mexico Requirements for Residential Lease Agreement
Security Deposit Cap on Leases Under One Year
On a rental agreement of less than one year, the owner may not demand or receive a security deposit greater than one month's rent (NMSA 1978 Section 47-8-18). On a lease of one year or longer there is no dollar cap, but if the deposit exceeds one month's rent the owner must pay the resident annual interest on it.
Security Deposit Return Within 30 Days
Within 30 days of the termination of the rental agreement or the resident's departure, whichever is later, the owner must return the deposit or provide an itemized written list of deductions (Section 47-8-18). Normal wear and tear may never be deducted, and an owner who misses the deadline forfeits the right to withhold any portion of the deposit.
Written Owner and Notice-Recipient Disclosure
Before residency begins, the owner must disclose in writing the name, address, and telephone number of the person managing the premises and of the person authorized to accept legal notices and demands on the owner's behalf (NMSA 1978 Section 47-8-19).
Utility Metering Disclosure for Multi-Unit Housing
In multi-unit housing with separate or sub-metered utilities, the resident may request a copy of the utility bill for the unit, and the calculations used to apportion common-area or sub-metered utility costs must be made available on request (NMSA 1978 Section 47-8-20 F).
24-Hour Written Notice Before Entry
Unless the owner and resident agree otherwise, the owner may enter the dwelling only after giving the resident 24 hours written notice stating the purpose of entry and a reasonable estimate of the date and time (NMSA 1978 Section 47-8-24).
Late Fee Capped at 5 Percent of Rent
An owner may charge a late fee of no more than 5 percent of the rent for each rental period the resident is in default, a cap reduced from 10 percent by 2025 state legislation (SB 267, amending NMSA 1978 Section 47-8-15). The fee is calculated on rent only, never on the deposit or other charges, and the owner must give notice of the fee no later than the last day of the following rental period.
Month-to-Month Termination and Rent-Increase Notice
Either party may end a month-to-month tenancy with at least 30 days written notice before the next periodic rental date (NMSA 1978 Section 47-8-37). An owner raising the rent in a month-to-month tenancy must also give at least 30 days written notice, or 60 days notice for an increase in a fee under the rental agreement (2025 SB 267 amending Section 47-8-15).
No Local Rent Control; Rights Cannot Be Waived
New Mexico state law is reported to preempt local rent-control ordinances, so no city or county may cap rental rates (NMSA 1978 Section 47-8A-1; confirm current text with a primary source). Rights granted under the Uniform Owner-Resident Relations Act generally cannot be waived by a lease provision (Section 47-8-16), and no landlord's lien arises from a residential rental (Section 47-8-36.1).