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New Mexico Landlord-Tenant Law 2026: The Complete Handbook
Late fees capped at 10% of rent, 1-month deposit cap on leases under a year, 3-day pay-or-vacate. Every New Mexico landlord rule with statutes and free tools.
Quick answer
New Mexicolate fee & security deposit rules (2026)
In New Mexico, a landlord's late fee is capped by statute at 10% of the monthly rent, and no grace period is required by state law. Security deposits are limited to 1x rent and must be returned within 30 calendar days of move-out.
- Late fee cap: 10% of the monthly rent
- Grace period: None required by state law
- Max security deposit: 1x rent
- Deposit return deadline: 30 calendar days after move-out
- Deposit escrow: Not required
- Statutes: N.M. Stat. § 47-8-15(D) · N.M. Stat. § 47-8-18
Tenby is an AI-powered property management platform for independent landlords managing 1-50 rental units. Tenby's compliance engine is loaded with New Mexico-specific rules — security deposit deadlines, required disclosures, late fee limits, and eviction notice requirements — automatically enforced for every New Mexico property.
New Mexico's landlord-tenant relationship is governed by the state's owner-resident statutes in N.M. Stat. Chapter 47, Article 8. New Mexico's deposit cap works differently than most states — it depends on the lease term — and its late-fee cap and notice rules are specific. Here's everything you need to know.
Security deposits in New Mexico
| Rule | New Mexico Law |
|---|---|
| Maximum deposit | 1 month's rent for lease terms under one year; no cap for leases of 1 year+ (N.M. Stat. § 47-8-18) |
| Return deadline | 30 days after termination/departure |
| Escrow required? | No |
| Interest required? | Only on 1-year+ leases when the deposit exceeds one month's rent — annual passbook-rate interest (N.M. Stat. § 47-8-18) |
| Itemized deductions? | Yes — written itemization required (N.M. Stat. § 47-8-18) |
| Pet deposit allowed? | Yes |
Key details — the cap depends on the lease term:
- For lease terms under one year, the deposit is capped at one month's rent
- For leases of one year or more, there is no cap — but any deposit above one month's rent must earn annual interest at a passbook rate (the statutory benchmark is archaic; use a local savings-institution passbook rate) (N.M. Stat. § 47-8-18)
- Itemized deductions plus any balance due must be delivered within 30 days of termination or departure
> Run the numbers: Use the New Mexico security deposit calculator to check your deposit amount, interest obligation, and return deadline against § 47-8-18.
Eviction process in New Mexico
Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal. Follow the statutory process.
Step 1: Serve proper notice
| Reason | Notice Period | Notice Type |
|---|---|---|
| Nonpayment of rent | 3 days | 3-Day Notice to Pay Rent or Vacate (N.M. Stat. § 47-8-33(D)) |
| Month-to-month termination | 30 days | Notice to Terminate (N.M. Stat. § 47-8-37) |
New Mexico's nonpayment notice carries a right to cure: if the tenant pays the rent due within the 3-day window, the tenancy continues (N.M. Stat. § 47-8-33).
Step 2: File the eviction action
If the tenant neither pays nor vacates, file the eviction action with the appropriate local court.
Step 3: Court hearing
Both parties present their case. Bring the lease, the served notice, the rent ledger, and your documentation.
Step 4: Writ of restitution
If the court rules in your favor, law enforcement executes the writ. Timelines vary by county court schedules.
Late fees in New Mexico
| Rule | New Mexico Law |
|---|---|
| Grace period | Not required by statute |
| Maximum fee | 10% of the rent specified per rental period — statutory cap (N.M. Stat. § 47-8-15(D)) |
| Must be in lease? | Yes |
| Daily fees allowed? | No |
| Notice of charge | You must notify the tenant of the charge by the end of the next rental period |
New Mexico caps late fees at 10% of the rent specified for each rental period — on $1,500 monthly rent, that's a $150 maximum. The cap is computed on the full periodic rent, not the amount past due. Two extra rules trip landlords up: the fee must be in the lease, and you must notify the tenant of the late charge by the end of the next rental period or you lose it.
> Check your fee: The New Mexico late fee calculator applies the 10% cap and the notice deadline for you. Also try our prorated rent calculator for move-in/move-out calculations.
Landlord entry in New Mexico
| Rule | New Mexico Law |
|---|---|
| Notice required? | Yes |
| Minimum notice period | 24 hours (N.M. Stat. § 47-8-24) |
| Emergency exceptions | Yes — emergencies permit entry without notice |
Give at least 24 hours' notice before non-emergency entry and enter at reasonable times.
Required disclosures in New Mexico
New Mexico landlords must provide the following:
- Owner/agent identity — written disclosure of the name and address of the owner or the person authorized to manage the premises and accept notices (N.M. Stat. § 47-8-19)
- Lead paint disclosure — for properties built before 1978, disclose known lead-based paint hazards and provide the EPA's "Protect Your Family From Lead in Your Home" pamphlet (federal requirement)
- No rent control — New Mexico has no rent control
- No cap on the amount of an increase
- Cannot raise rent during a fixed-term lease unless the lease includes a rent increase clause
- Cannot raise rent in retaliation for a tenant exercising legal rights
- Month-to-month tenancies can be terminated on 30 days' notice (N.M. Stat. § 47-8-37) — give at least that much runway when changing terms
- Maintain the property in habitable condition and comply with building and housing codes
- Keep plumbing, heating, electrical, and supplied appliances in good working order
- Maintain common areas
- Make repairs promptly after notice — New Mexico's repair clock is short, and Tenby's compliance engine tracks a 7-day repair window for New Mexico properties
- Keep the unit clean and sanitary
- Use systems, fixtures, and appliances reasonably
- Not willfully or negligently damage the premises
- Dispose of garbage properly and not disturb neighbors
- Notify the landlord of needed repairs promptly and in writing
- Habitable housing — the landlord must maintain the premises
- Cure nonpayment — paying the rent due within the 3-day notice window ends the eviction (N.M. Stat. § 47-8-33)
- Withhold rent — permitted when the landlord fails to maintain the premises (N.M. Stat. § 47-8-27.2)
- Repair and deduct — permitted under N.M. Stat. § 47-8-27.2 after proper notice
- Deposit protections — the term-based cap, passbook interest on large deposits under long leases, itemized deductions, and the 30-day return deadline
- Late fee protections — the 10% cap and the notice-by-next-period rule (N.M. Stat. § 47-8-15(D))
- Privacy — 24 hours' notice before non-emergency entry (N.M. Stat. § 47-8-24)
- Domestic violence protections — under federal VAWA, tenants in certain federally subsidized housing have additional protections
- Term-aware deposit cap enforcement — one month's rent on leases under a year; interest tracking on larger deposits under longer leases
- 30-day deposit return tracking with countdown alerts
- 10% late fee cap applied automatically, with the notify-by-next-rental-period deadline tracked
- Required disclosure checklist at lease creation (owner/agent identity, lead paint)
- 3-day pay-or-vacate notice timeline guidance with notice generation
- 24-hour entry notice tracking
- 7-day repair window tracking on maintenance requests
New Mexico's statutory disclosure list is short, but the identity disclosure matters — it establishes who can be served with notices, and skipping it undermines your position in any dispute.
Rent increase rules in New Mexico
Maintenance obligations
Landlord must:
Tenant must:
Tenant rights in New Mexico
Tenants in New Mexico have the right to:
How Tenby helps New Mexico landlords
Tenby's compliance engine handles New Mexico-specific requirements automatically:
The bottom line
New Mexico's rules hinge on details other states don't have: the deposit cap applies only to leases under a year (longer leases trade the cap for passbook interest on anything above one month), late fees are capped at 10% of the periodic rent and forfeited if you don't notify the tenant by the end of the next rental period, and the eviction notice is a fast 3 days with a right to cure. Add 24-hour entry notice, a 30-day deposit return, and the owner/agent identity disclosure, and that's the compliance picture. Get the term-based deposit math right, calendar the late-fee notice, and document everything.
Landlord Law Watch
Never miss a New Mexico law change
This guide is current today — but New Mexico's late fee caps, deposit rules, grace periods, and notice requirements change more often than most landlords realize. Law Watch monitors the statutes and emails you the moment New Mexico moves: what changed, old vs. new, and what to update in your lease.
Watch New Mexico — $29/yr →Prefer the free version?
Occasional landlord updates — state-by-state guides and a heads-up on major law changes. For monitoring built for your state, Law Watch above is the tool.