New Mexico Lease Requirements: Key Clauses and § 47-8-15

The New Mexico Uniform Owner-Resident Relations Act (UORRA), enacted July 1, 1975, and significantly overhauled by SB 267 (effective June 20, 2025), dictates the framework for residential leases. While landlords have flexibility, certain terms are mandated, and specific clauses are strictly prohibited and legally unenforceable.

Written vs. Oral Agreements

While the New Mexico Statute of Frauds (NMSA § 47-1-1) historically only required written leases for tenancies exceeding one year, the Uniform Owner-Resident Relations Act (NMSA § 47-8-20(G)) now explicitly mandates that the owner shall provide a written rental agreement to each resident prior to the beginning of occupancy. This makes a written lease a statutory requirement for all residential tenancies in New Mexico, regardless of duration.

Landlords must provide a signed copy of the written agreement to the tenant before they move in.

Essential Lease Components

Under NMSA § 47-8-15 and the 2025 transparency reforms, a compliant lease must define:

1. Mandatory Disclosure: Names and addresses of the owner and authorized manager (NMSA § 47-8-19).
2. Upfront Disclosure: All costs, including base rent and itemized fees, must have been disclosed in the property listing (SB 267).
3. Lease Terms: Clear start and end dates.
4. Rent & Late Fees: Rent amount and due date. Late fees are capped at 5% of the monthly rent and must be explicitly stated in the lease (NMSA § 47-8-15(D)).
5. Security Deposits: Amount and terms for return (NMSA § 47-8-18).
6. Utility Responsibilities: Itemized list of who pays for specific services.
7. Landlord Entry: Right of entry (generally 24 hours' notice for non-emergencies) (NMSA § 47-8-24).

The $50 Screening Fee Cap (SB 267)

Before the lease is signed, landlords must adhere to the 2025 applicant protections:

• Maximum Fee: The application screening fee cannot exceed $50 (NMSA § 47-8-19.2).
• Transparency: Landlords must provide a written receipt for the fee and disclose all criteria beforehand.
• 90-Day Rule: An applicant cannot be charged a screening fee more than once in a 90-day period if they provide a valid report from within that window.
• Refunds: Fees must be refunded within 30 days if the background check is not performed or the unit is rented to another party.
• Penalties: An owner who charges an unauthorized screening fee shall be liable for two hundred fifty dollars ($250) and shall return all fees paid by the applicant (NMSA § 47-8-48).

Prohibited Lease Clauses

New Mexico law (NMSA § 47-8-16) expressly forbids landlords from including certain clauses. These are void and unenforceable:

• Waiver of Rights: Agreeing to waive any rights under the UORRA (e.g., the right to habitability).
• Exculpatory Clauses: Limiting the landlord's liability for negligence or maintenance failures.
• Confession of Judgment: Authorizing the landlord to confess judgment on behalf of the tenant.
• Attorney Fees: Clauses requiring the tenant to pay the landlord's legal fees automatically (fees are only awarded by a judge to the prevailing party).

While NMSA § 47-8-16 prohibits these clauses, the Uniform Owner-Resident Relations Act, as amended by SB 267, provides for expanded private remedies. If a suit is brought by an applicant or any party to the rental agreement to enforce its terms and conditions or any provisions of the Act, the prevailing party shall be entitled to reasonable attorneys' fees and court costs to be assessed by the court (NMSA § 47-8-48).

How Landager Helps

Landager automates the generation of UORRA-compliant leases, tracks the new 5% late fee limits, and ensures your property listings meet the mandatory SB 267 disclosure requirements.

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