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Landlord's Desk

State law guide · Checked November 14, 2026

New Mexico landlord rules: late fees, deposits and rent increases

New Mexico cut its late fee cap from 10% to 5% of rent in 2025. The rules sit in the Uniform Owner-Resident Relations Act. Here is what it says, with the section for each rule.

All states

The short version

  • Late fee limit: 5% of the rent for each rental period the tenant is in default.
  • The statute sets no grace period. The lease must provide for a late fee, and the owner must give notice of the fee by the last day of the next rental period.
  • Deposit limit: one month's rent when the rental agreement is shorter than one year.
  • Return the deposit, with an itemized written list of deductions, within 30 days after the agreement ends or the tenant leaves, whichever is later.
  • A month-to-month rent increase needs written notice at least 30 days before the periodic rental date, and cities can't adopt rent control.

Late fees in New Mexico

Limit
5% of the rent for each rental period in default. The fee is figured on rent alone. Deposits, additional fees and utilities are left out of the calculation. NMSA 1978, § 47-8-15(D)
Grace period
None in the statute. NMSA 1978, § 47-8-15
Other conditions
The rental agreement must provide for a late fee, and the owner must give notice of the fee charged. Notice is due no later than the last day of the next rental period. NMSA 1978, § 47-8-15(D)

Security deposits in New Mexico

Maximum deposit
One month's rent when the rental agreement is shorter than one year. For annual agreements the statute sets no amount, but a deposit above one month's rent earns interest. NMSA 1978, § 47-8-18(A)
Return deadline
30 days after the agreement ends or the tenant leaves, whichever is later. Mailing to the tenant's last known address counts. NMSA 1978, § 47-8-18(C)
Itemized deductions
Required, in writing, with the balance, within the same 30 days. No part of the deposit may be kept for normal wear and tear. NMSA 1978, § 47-8-18(C)
Interest
Required on an annual rental agreement when the deposit is more than one month's rent. It is paid each year at the passbook rate permitted to savings and loan associations in the state. The statute sets no interest duty for a deposit of one month's rent or less. NMSA 1978, § 47-8-18(A)(1)
How it's held
No special account or bond in the statute. NMSA 1978, § 47-8-18
Penalty
Missing the 30-day deadline means the owner loses the right to withhold any part of the deposit. The owner also loses counterclaims and any separate damages action, and is liable for court costs and attorney fees. A $250 civil penalty payable to the tenant can also apply. NMSA 1978, § 47-8-18(D), (E)

Rent increases in New Mexico

Notice to raise rent
Written notice at least 30 days before the periodic rental date. This is the rule for a month-to-month tenancy. A separate section requires 60 days' written notice to increase any other fee under the rental agreement. NMSA 1978, § 47-8-15(F)
Statewide cap
None in the statute. NMSA 1978, ch. 47, art. 8
City rent control
Not allowed. No political subdivision or home rule municipality may enact an ordinance or resolution that controls rental rates. Property with government contract benefits for reduced rents is not covered by the ban. NMSA 1978, § 47-8A-1

This page covers New Mexico state law for ordinary residential rentals. Cities and counties can add their own rules, and subsidized housing and mobile home lots follow different ones. The official New Mexico statutes site has no link to a single section, so every citation opens Chapter 47. Find the section by its number there.

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Questions landlords ask

What is the maximum late fee for rent in New Mexico?

5% of the rent for each rental period in default, figured on rent alone. On $1,200 rent that is $60. The lease must provide for the fee (NMSA 1978, § 47-8-15).

What is the maximum security deposit in New Mexico?

One month's rent when the rental agreement is shorter than one year. The statute sets no amount for annual agreements, but a deposit above one month's rent earns interest (NMSA 1978, § 47-8-18).

How long does a New Mexico landlord have to return a security deposit?

30 days after the agreement ends or the tenant leaves, whichever is later, with deductions itemized in writing (NMSA 1978, § 47-8-18).

Free templates you can use in New Mexico

These are plain templates that aren’t tied to one state. Fill in the numbers your statute and lease call for.

Keep New Mexico rent and deposits on one ledger

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This guide is general information, not legal advice. It summarizes state statutes as read on November 14, 2026; laws change and courts interpret them. Check the current statute (New Mexico Statutes Annotated 1978, chapter 47) or talk to a local attorney before you act.