What clauses are legally required in every New Mexico lease agreement?
Every New Mexico lease should identify the owner/agent and all adult residents, the property, the rent and due date, and the term. The Act requires the owner/manager disclosure (§ 47-8-19) and imposes the deposit and late-fee rules below. A lease for a term longer than one year should be in writing.
New Mexico security deposit rules — the one-month cap and 30-day return
NMSA § 47-8-18 governs deposits:
- Cap: for a rental agreement of less than one year, the deposit may not exceed one month's rent. For an agreement of one year or more, there is no cap, but if the deposit exceeds one month's rent the owner must pay annual interest at the passbook rate.
- Return: within 30 days of termination or the resident's departure, the owner must provide an itemized statement of deductions and the balance; no deduction for normal wear and tear.
- Penalty: bad-faith retention exposes the owner to a $250 civil penalty.
For a multi-state comparison, see security deposit rules every landlord must know.
Late fees and rent rules in New Mexico
New Mexico caps late fees, and the cap was lowered in 2025. Under § 47-8-15, as amended by 2025 SB 535 (effective June 20, 2025), a late fee may not exceed 5% of the rent owed for the rental period in default (down from 10%). The fee must be stated in the rental agreement, is calculated on rent only (not deposits, utilities, or other fees), and the owner must give notice of the fee by the last day of the next rental period.
Notice periods to end or not renew a New Mexico lease
New Mexico notice periods:
| Situation | Notice | Statute |
|---|---|---|
| Terminate month-to-month tenancy | 30 days before the periodic rental date | § 47-8-37 |
| Nonpayment of rent | 3-day notice (judicial days) | § 47-8-33(D) |
Full payment within the 3 days bars the action. Self-help eviction is unlawful.
What disclosures must New Mexico landlords provide?
New Mexico's required disclosures:
- Owner/manager identity (§ 47-8-19): in writing, the person authorized to manage the premises and an owner or agent for service of process and notices; noncompliance relieves the resident of the duty to give the owner notice.
- Lead-based paint (federal): the disclosure and EPA pamphlet for pre-1978 housing.
What happens if a New Mexico lease is missing required terms?
Specific failures carry specific consequences:
- Deposit over the cap (short leases): the resident can recover the excess, and bad-faith retention adds a $250 penalty (§ 47-8-18).
- Late fee over 5%: unenforceable above the § 47-8-15 cap.
- Missing owner disclosure: relieves the resident of the duty to give the owner notice (§ 47-8-19).
Managing rentals in more than one state? Compare New Mexico's rules with our Arizona and Texas lease requirement guides.
Full New Mexico disclosure checklist
For a dedicated, statute-by-statute rundown of every notice a New Mexico landlord must give at signing, see our New Mexico required lease disclosures checklist.
Create your New Mexico lease agreement
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Create your New Mexico lease agreement →Frequently asked questions
What is the maximum security deposit in New Mexico?
For a lease of less than one year, one month's rent. For a lease of one year or more there is no cap, but a deposit above one month's rent must earn annual interest (NMSA § 47-8-18).
How long does a New Mexico landlord have to return a security deposit?
Within 30 days of termination or the resident's departure, with an itemized statement of deductions. Bad-faith retention adds a $250 civil penalty (NMSA § 47-8-18).
What is the late-fee limit in New Mexico?
As of June 20, 2025, 5% of the rent owed for the rental period in default (lowered from 10% by SB 535), and it must be stated in the rental agreement (NMSA § 47-8-15).
How much notice is required to end a month-to-month tenancy in New Mexico?
Thirty days before the periodic rental date (NMSA § 47-8-37). Nonpayment of rent requires a separate 3-day notice (§ 47-8-33).
What must a New Mexico landlord disclose?
The person authorized to manage the premises and an owner or agent for service and notices (NMSA § 47-8-19), plus the federal lead-based paint disclosure for pre-1978 housing.
Official sources
Primary statutes and official government references for this guide. Statutes change — always confirm against the current official text before you act.