Laws by state / New Mexico

New Mexico landlord and tenant rules

The figures that decide most disputes between New Mexico landlords and tenants, each with a calculator and the statute behind it.

Verified against the statutes 2026-10-22By RentByState Research
RuleNew MexicoStatuteTool
Maximum security deposit1 month's rent for rental agreements shorter than 1 year; no cap for annual (1-year) leases, but deposits above 1 month's rent on an annual lease must earn interest paid to the tenantNMSA 1978 § 47-8-18Deposit rules
Deposit return deadline30 days after termination of the rental agreement or the resident's departure, whichever is later; itemized written list of deductions plus balance; failure forfeits right to withhold any of the deposit and to counterclaim, plus costs and attorney fees; $250 civil penalty for bad-faith retentionNMSA 1978 § 47-8-18Deposit rules
Interest on the depositNot requiredNMSA 1978 § 47-8-18New Mexico interest calculator
Maximum late fee5% of monthly rentNMSA 1978 § 47-8-15(D), as amended by Laws 2025, ch. 122, § 6 (SB 267)Late fee calculator
Landlord notice, month-to-month30 daysNMSA 1978 § 47-8-37(A)-(B); § 47-8-33(D); § 47-8-15(F)Notice calculator
Tenant notice, month-to-month30 daysNMSA 1978 § 47-8-37(A)-(B); § 47-8-33(D); § 47-8-15(F)Notice calculator
Rent increase notice30 daysNMSA 1978 § 47-8-37(A)-(B); § 47-8-33(D); § 47-8-15(F)Notice calculator
Pay-or-quit notice3 daysNMSA 1978 § 47-8-37(A)-(B); § 47-8-33(D); § 47-8-15(F)Notice calculator
Rent increase capNone statewide

Security deposits in New Mexico

New Mexico limits security deposits to 1 month's rent for rental agreements shorter than 1 year; no cap for annual (1-year) leases, but deposits above 1 month's rent on an annual lease must earn interest paid to the tenant. The deposit must be returned 30 days after termination of the rental agreement or the resident's departure, whichever is later; itemized written list of deductions plus balance; failure forfeits right to withhold any of the deposit and to counterclaim, plus costs and attorney fees; $250 civil penalty for bad-faith retention. No interest is owed on the deposit under state law. Interest required only when an annual lease deposit exceeds 1 month's rent (passbook rate). Last month's prepaid rent is not a deposit. Statute text read via Wayback snapshot of Justia (2023 NM Statutes) and the 2025 UORRA compilation; § 47-8-18 not amended by 2025 legislation. Full deposit rules and move-out checklist.

Late fees in New Mexico

New Mexico caps late fees at 5% of the monthly rent. There is no statutory grace period, so the lease controls when the fee starts. Calculate the maximum fee.

Notice periods in New Mexico

A New Mexico landlord must give 30 days’ written notice to end a month-to-month tenancy, and the tenant must give the same. A rent increase needs 30 days’ notice. For nonpayment, the landlord must serve a 3-day notice to pay or quit before filing for eviction. Calculate the effective date of a notice.

Deposit interest in New Mexico

Sources

Frequently asked questions

How much can a landlord charge for a security deposit in New Mexico?

1 month's rent for rental agreements shorter than 1 year; no cap for annual (1-year) leases, but deposits above 1 month's rent on an annual lease must earn interest paid to the tenant. Interest required only when an annual lease deposit exceeds 1 month's rent (passbook rate). Last month's prepaid rent is not a deposit. Statute text read via Wayback snapshot of Justia (2023 NM Statutes) and the 2025 UORRA compilation; § 47-8-18 not amended by 2025 legislation.

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

5% of monthly rent. Up to 5% of the rent for each rental period in default, only if the lease provides for a late fee. Calculated on rent only (excluding deposits, other fees, utilities). Landlord must give notice of the fee charged no later than the last day of the next rental period or it is not collectible. NOTE: cap was 10% until Laws 2025, ch. 122 (SB 267) cut it to 5% effective June 20, 2025; older sources (including Justia's 2024 text) still show 10%.

How much notice does a landlord have to give a tenant to move out in New Mexico?

30 days’ written notice for a month-to-month tenancy. Either party: written notice at least 30 days before the periodic rental date for month-to-month; 7 days for week-to-week

How long is a pay-or-quit notice in New Mexico?

3 days. The tenant can stop the eviction by paying the full amount within that time.

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