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    New Mexico Late Fee Law

    New Mexico limits residential late fees by statute. Up to 5% of the rent for each rental period the tenant is in default; calculated on rent only (not deposits, other fees or utilities); must be provided for in the rental agreement and noticed by the last day of the next rental period. State law sets no grace period, so any grace period comes from the lease.

    Last verified: · Researched and cited by MakeLease · not yet attorney-reviewed

    New Mexico late fee law at a glance

    Late-fee capUp to 5% of the rent for each rental period the tenant is in default; calculated on rent only (not deposits, other fees or utilities); must be provided for in the rental agreement and noticed by the last day of the next rental periodNMSA 1978 § 47-8-15(D), as amended by Laws 2025, ch. 122, § 6 (SB 267), NMSA 1978 § 47-8-15(D) (official compilation)
    Grace periodNo state grace periodNMSA 1978 § 47-8-15(B), (D), NMSA 1978 § 47-8-15(B), (D) (official compilation)
    Notice before filing for unpaid rent3 days (3-day notice of nonpayment and intent to terminate)NMSA 1978, § 47-8-33(D)

    Late-fee cap

    • In effect since .
    • Before : Late fee capped at 10% of the rent for each rental period in default (Laws 1995, ch. 195).

    What New Mexico law says

    Is there a limit on late fees in New Mexico?

    If the lease provides for one, a late fee may not exceed 5% of the rent for each rental period in default, must be calculated on rent alone, and must be noticed by the last day of the following rental period (NMSA 1978 § 47-8-15(D)) (NMSA 1978 § 47-8-15(D), as amended by Laws 2025, ch. 122, § 6 (SB 267)).

    Does New Mexico require a grace period before a late fee?

    New Mexico sets no grace period: a lease-authorized late fee may be charged once rent is not paid as the rental agreement requires (NMSA 1978 § 47-8-15(B), (D)).

    How much notice must a New Mexico landlord give for unpaid rent?

    For unpaid rent, give written notice of nonpayment and intent to terminate; if the resident doesn't pay within 3 days the agreement may end, but tendering the full amount due before the 3 days run out bars the eviction (NMSA 1978, § 47-8-33(D)).

    How New Mexico compares

    20 of 51 verified jurisdictions cap late fees by statute. 14 require a grace period.

    None of New Mexico's 4 neighbors follows the same rule.

    Late-fee cap · grace periodStates
    Statutory formula · noneNew Mexico
    Statutory standard, no fixed amount · noneArizona
    Statutory formula · 7 daysColorado
    Reasonableness (case law) · noneOklahoma
    Statutory formula · 2 daysTexas

    Other New Mexico rules

    Security deposit limit1 month's rent (with exceptions)NMSA 1978 § 47-8-18(A)
    Deposit return deadline30 days after move-outNMSA 1978 § 47-8-18(C)-(D), N.M. Legislature CCJ Committee handout (Aug. 25, 2026), slide 'Fees Assessed at Move-out' citing NMSA 1978 § 47-8-18(C)
    Entry notice24 hours' noticeNMSA 1978 § 47-8-24
    Rent-increase notice30 days (Periodic residencies shorter than a month: written notice at least one rental period before the first increased payment. Fixed-term residencies: 30 days before the term ends. Increases to lease fees require 60 days' written notice (§ 47-8-19.4))NMSA 1978 § 47-8-15, 2025 SB 267 as enacted (Laws 2025, ch. 122), § 6
    Month-to-month termination30 days (either side)NMSA 1978 § 47-8-37

    Read the New Mexico law

    Put the late fee and grace period in writing

    Create a New Mexico lease

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