Overview
Leases are the cornerstone of a successful landlord-tenant relationship, providing a legal framework for both parties to enter a harmonious agreement.
In New Mexico, residential lease documents—including their structure, nature, and contents—are regulated by New Mexico landlord tenant laws. For this reason, it’s imperative to understand the intricacies of the law before constructing a lease.
This guide will walk you through the crucial components of a lease agreement New Mexico considers compliant, ensuring you’re well-equipped to make informed decisions. And to make your journey easier, we’re offering a free New Mexico lease template for download!
A New Mexico lease or New Mexico rental agreement is a legally binding document that outlines the terms and conditions governing the rental of a residential property within the state. This lease must adhere to New Mexico landlord-tenant laws, providing a clear framework for both landlords and tenants to follow and fostering a secure and transparent rental environment.
The following components should be included in every state of New Mexico rental agreement. Keep in mind that these components are primarily associated with residential leases; a New Mexico commercial lease agreement will necessarily have different requirements.
Lease Term
This section specifies the lease’s start and end dates, establishing the duration of the rental agreement.
Rent
Here, you’ll find details regarding the rent rate, due date, and the status of rent control. In New Mexico, rent control is banned—no city or county in the state can pass a law that regulates or restricts the price of rent. This means landlords and choose their own rental rates based on the current market.
Late Fees
The penalties for missing rent payments should be clearly stated in the lease, as should any exceptions. In New Mexico, late fees are limited to 10% of monthly rent (NMSA § 47-8-15(D)). All New Mexico rental lease agreements should include a clear explanation of the late fee policy so that tenants know exactly what will happen if they are late on rent.
Security Deposit
This section of New Mexico lease agreements includes details about the security deposit, including its amount, where it will be stored, and how/when it will be returned.
In New Mexico, security deposits are limited to one month’s rent for tenancies lasting less than one year (NMSA § 47-8-18(A)(2)). If the lease lasts longer than one year, there is no specific limit—although all security deposits must be reasonable. Most landlords request security deposits around one month’s rent to two month’s rent.
New Mexico also has laws governing other aspects of security deposits. If the security deposit exceeds one month’s rent, the landlord must pay interest on the deposit to tenants each year it is stored (NMSA § 47-8-18(A)(1)). At the end of the lease term, the landlord must return the security deposit to the tenant (minus any deductions) within 30 days (NMSA § 47-8-18(C)).
Every New Mexico rental lease agreement should include a detailed description of the landlord’s security deposit policy, including the amount of the deposit, how/when it will be returned, and the conditions under which funds may be deducted from it.
Required Disclosures
This section encompasses crucial required disclosures, which are information that must be disclosed to the tenant in the lease before they agree to move into the rental property. These required disclosures must be included in a lease agreement New Mexico considers compliant, or else provided to the tenant in a separate written notice to the tenant.
In New Mexico the required disclosures are:
- Lead-based paint – Landlords in all 50 states must disclose lead-based paint hazards in rental agreements for most rental properties built before 1978.
- Landlord/agent identification — New Mexico landlords must disclose the name, address, and phone number of the person authorized to manage the rental property.
- Shared utilities — If a tenant requests, a New Mexico property owner is required to disclose the calculations used to apportion utility costs among common areas and sub-metered apartments.
Landlord Right to Entry
In New Mexico, there are specific laws governing when a landlord can enter a rental property. Landlords in this state must provide at least 24 hours’ notice before entering an occupied unit for a non-emergency reason (NMSA § 47-8-24(A)(1)). Be sure to include the landlord’s right of entry in every state of New Mexico lease agreement.
Repairs & Maintenance
The lease outlines how and when tenants should submit maintenance requests and clarifies the process for addressing necessary repairs. All New Mexico rental agreements should specify which maintenance responsibilities are the landlord’s and which are the tenant’s.
Lease Termination/Renewal Procedures
This section details the procedures for early lease termination and breaking the lease, including eviction processes. Specifically, the lease should clearly state how many days’ notice the tenant needs to provide the landlord to announce their intent to either renew or terminate the lease.
A New Mexico residential lease agreement should also clearly describe what happens if the tenant breaks the lease. Before filing for eviction in New Mexico, landlords must send eviction notices of specified lengths: A three-day pay or quit notice (for nonpayment), a seven-day cure or quit notice (for lease violations), or a three-day unconditional quit notice (for severe violations). These notice periods should be specified to the tenant so that both parties are clear on what will happen if the tenant fails to uphold the lease agreement.
Joint and Severability Clause
This clause is for leases with multiple roommates and explains the legal consequences if one party fails to fulfill their obligations. It ensures that the entire lease isn’t invalidated due to one roommate’s breach.
Signatures
Both the landlord and tenant will sign the lease either on paper or electronically, ensuring a secure and convenient process.
New Mexico Lease Agreement Download
To make your leasing journey simpler, we offer a free, downloadable New Mexico lease agreement template. This template is tailored to meet the specific requirements of New Mexico state law, making it a valuable tool for landlords and tenants.
Conclusion
Understanding the nuances of a New Mexico residential lease agreement is vital for a smooth and legal tenancy. We hope this guide has provided you with a clear understanding of the components of a New Mexico lease. To get started on the right foot, download our free New Mexico lease template and ensure a transparent, lawful, and satisfying rental experience.
