New Mexico Late Rent Fee Laws: Limits, Grace Periods, and Penalties
What New Mexico landlords can charge when rent is late, how long they must wait, and what an illegal fee costs. Last reviewed 2026-08-16.
How much can a landlord charge in New Mexico?
NMSA § 47-8-15(D), as amended by Senate Bill 267 and effective June 20, 2025, caps a late fee at five percent of the rent for each rental period the resident is in default. That replaced the long-standing ten percent ceiling, and many published guides and lease templates still show the old number. The statute also narrows the base: late fees must be calculated only on rent, and the rent figure used cannot include deposits, additional fees, or utilities. Charging above 5 percent, or applying 5 percent to a total balance that includes utilities or fees, exceeds what the statute allows.
How late does rent have to be?
New Mexico requires no grace period. A late fee attaches once the resident fails to pay rent in accordance with the rental agreement, so it can be charged the day after the due date if the agreement provides for it. What the statute does impose is a back-end deadline: the owner must give notice of the late fee no later than the last day of the next rental period following the default.
Does the fee have to be in the lease?
Section 47-8-15(D) permits a late fee only "if the rental agreement provides for the charging of a late fee," so it must be written into the agreement. The owner must also notify the resident of the fee charged no later than the last day of the rental period immediately following the one in which the default occurred, or the fee is not properly assessed.
What happens if you charge too much?
A fee above 5 percent, or one never disclosed in the rental agreement, cannot be enforced, and NMSA § 47-8-48(A) awards reasonable attorney fees and court costs to the prevailing party in any suit to enforce the Uniform Owner-Resident Relations Act. SB 267 also made charging undisclosed or unauthorized rental fees actionable under New Mexico's Unfair Practices Act, and set $250 liability plus a full refund for an unauthorized screening fee.
Returned payment fees
New Mexico sets no specific statutory cap on a landlord's returned-payment fee. It must be provided for in the rental agreement and disclosed, and it is not part of the 5 percent late fee calculation. After SB 267, charging a fee the agreement never disclosed is itself treated as an unfair or deceptive trade practice.
Recent changes to the law
Senate Bill 267, signed April 8, 2025 and effective June 20, 2025, cut the late fee cap from ten percent to five percent, barred including deposits, additional fees, or utilities in the rent figure used to compute the fee, capped screening fees at $50, and made undisclosed or unauthorized rental fees an unfair or deceptive trade practice.
What New Mexico landlords get wrong
The 10 percent figure is still the most commonly published number for New Mexico and it has been wrong since June 20, 2025. If your lease says 10 percent, or your software calculates 10 percent, fix it. The second trap is the base: a $1,200 unit where the resident also pays $80 in utilities gives a maximum fee of $60, not $64. Third, the notice deadline is real and often ignored: tell the resident about the fee no later than the last day of the following rental period. SB 267 also capped screening fees at $50 with refund conditions and made undisclosed fees actionable under the Unfair Practices Act, so a sloppy fee ledger now carries consumer-protection exposure, not just an unenforceable charge.
The law itself
Frequently asked questions
What is the maximum late fee in New Mexico in 2026?
Five percent of the rent for each rental period the resident is in default. The cap dropped from ten percent when Senate Bill 267 took effect on June 20, 2025. Many lease templates and websites still show ten percent. On $1,200 rent the maximum is $60 per late month, calculated on rent alone.
Can a New Mexico landlord include utilities when calculating a late fee?
No. Section 47-8-15(D) says late fees are calculated only on rent, and the rent figure cannot include deposits, additional fees, or utilities. If the resident pays $1,100 rent plus $90 in utilities, the 5 percent runs against $1,100, giving a maximum fee of $55 for that period.
How long does a New Mexico landlord have to charge a late fee?
You must give notice of the late fee no later than the last day of the next rental period after the one in which the default happened. Miss that window and the fee is not properly assessed. Send a written notice or an itemized statement showing the charge before that deadline passes.
What happens if a New Mexico landlord charges more than 5 percent?
The excess is not collectible, and under section 47-8-48 the prevailing party in a suit under the Owner-Resident Relations Act recovers reasonable attorney fees and court costs. Since 2025, charging undisclosed or unauthorized fees is also an unfair or deceptive trade practice, which opens the door to Unfair Practices Act claims.
Keep reading
Charging the wrong late fee can cost you more than the rent.
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Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.