Are you thinking of investing in real estate in New Mexico? This guide breaks down the laws for rental property owners so they understand their responsibilities according to different rules and regulations.
Legal Responsibilities of Rental Property Owners in New Mexico
Landlords have the right and responsibility to collect payments when they’re due, maintain a safe, peaceful living environment for tenants and neighbors, and collect and use security deposits to cover damages as needed.
New Mexico landlord-tenant laws are mainly regulated by the state’s Uniform Owner Resident Relations Act. Understanding these regulations is important to protect the rights of both parties.
Here’s a general overview of the rights, protections and responsibilities of both landlords and tenants.
Health, Safety and Repairs
In New Mexico, every landlord must keep all rental unit appliances in safe, functional condition. These include electrical, heating, air conditioning, plumbing and ventilation systems. The landlord is responsible for providing units that comply with local safety and health codes. If requested by the tenant, the landlord must have any issues in the unit repaired accordingly. If they don’t respond to these requests within seven days, the tenant can pursue legal action against the landlord.
Tenants have a responsibility to keep the property in a habitable condition, pay rent on time, make minor repairs when required and not disturb other people near the unit. Similarly, a landlord can seek legal action against a tenant for a breach of lease terms, property damage or unpaid rent.
Right of Entry
Landlords have the right to enter a rental unit to handle repairs requested by the tenant. However, they can only conduct inspections if they have a valid reason to do so.
Disability Accommodations
Under the Fair Housing Act, landlords may not discriminate against tenants based on gender, race, religion, national origin or disability. Tenants with disabilities have the right to request reasonable accommodations from landlords, such as having a service animal in their unit or adjusting rent due dates to align with benefit payments. Landlords also have the right to request documentation from the tenant’s medical provider.
Protection for Victims of Domestic Violence (DV)
The Violence Against Women Act (VAWA) protects tenants who are victims of DV by providing federally subsidized housing. In New Mexico, landlords of subsidized housing must follow VAWA protections. However, VAWA doesn’t cover private, market-rate housing unless the landlord accepts a Section 8 voucher from the tenant.
Security Deposits
Security deposits provide a safety net for landlords, allowing them to cover unanticipated costs like property damage and unpaid bills. Once a tenant moves out, the landlord usually gives them back the security deposit fee unless the tenant:
- Has caused damage to the property beyond normal wear and tear.
- Is behind on rent payments.
Typically, the landlord must return the security deposit within 30 days of the tenant vacating the property. The tenant can take legal action if they don’t receive the deposit within this time frame.
Notices for Termination or Eviction
New Mexico allows multiple types of eviction notices:
- Material noncompliance
- Nonpayment of rent
- Substantial violation notice
- A 30-day notice at the end of a lease term
Written Lease and Walk-Through Inspection
Before finalizing the rental agreement, the landlord and tenant should do a walk-through inspection of the unit together and record any issues or damage. Both parties must also sign a written lease agreement for it to be legally binding.
Navigating Real Estate Investment Laws in New Mexico
As a first-time real estate investor preparing to rent out your property, familiarizing yourself with the state’s investment laws is critical. Below are some essential factors and information to consider as you take on this new adventure.
Tax Laws for Rental Property Owners
In New Mexico, local counties oversee property taxes, meaning tax assessments may vary depending on the rental property’s precise location. Counties determine property values and generally reassess these numbers annually. A landlord should keep track of their property’s assessed value since it directly impacts their owed taxes.
Additionally, rental property tax rates in New Mexico vary by state and local regulations. These rates are applied to the property’s assessed value to calculate the property taxes owed. Rates differ between areas, so landlords should stay up to date with any changes in tax laws that could impact their property taxes.
Other key considerations include:
- Deductible expenses: Landlords can deduct many expenses associated with their rental property, including property maintenance and repairs, mortgage interest, and insurance.
- Depreciation: Depreciation allows landlords to deduct a portion of the rental property’s cost over its useful life, decreasing their taxable income.
Understanding tax laws and eligible deductions can be complex. Consider hiring a qualified tax professional who can provide personalized advice based on your unique situation.
Property Inspection, Upkeep and Maintenance Tips
Regularly inspecting and maintaining your rental property is a must to attract and retain quality tenants and protect your investment. Keep these best practices in mind:
- Conduct regular inspections: Periodically inspect the property to detect potential issues early on. Inform the tenant of any problems you encounter as soon as possible.
- Perform repairs promptly: When a tenant submits a request for a repair, respond quickly to prevent this issue from escalating.
- Implement a preventive maintenance plan: A comprehensive plan is important to keep the property in good condition. This should entail tasks like roof inspections, HVAC system servicing and gutter cleanouts.
- Hire a professional property manager: Managing a rental property on your own can be challenging and time-consuming. Consider hiring a professional to handle these day-to-day responsibilities, including tenant screening, rent collection and maintenance requests.
Common Questions About New Mexico Rental Laws
We’ve answered some FAQs to help you better understand landlord and tenant rights and responsibilities.
1. How Do Property Maintenance Laws Impact Landlords and Tenants?
New Mexico landlord-tenant laws are designed to protect both parties and ensure a transparent rental agreement. They outline landlords’ responsibilities to maintain habitable, safe living spaces, as well as tenants’ obligations to treat the property responsibly. Understanding these regulations is essential on both sides for a successful tenancy.
2. What Are the Rental Property Inspection Laws in New Mexico?
During an emergency, such as a flood, gas leak or fire, a landlord may need to enter the unit immediately. Under New Mexico law, a landlord does not need permission to enter a rental unit in emergencies where the property and lives are at stake.
In nonurgent situations, however, landlords are required to provide at least 24 hours’ notice and get consent from the tenant before entering the unit. Written notice can be an email, a letter delivered to the residence or even a text message.
3. What Should a Rental Agreement Include?
Rental agreements should typically include the following information:
- A description of the property
- Rent conditions, including payments, late fees and grace periods
- Information regarding all parties involved
- Person responsible for utility bills and repairs
- Subleasing terms, if applicable
Remember that under the Uniform Owner Resident Relations Act, leases longer than one year require a written rental agreement. That being said, having a written agreement is always a good idea, regardless of the lease duration.
Get Support Navigating Rental Property Rules and Regulations
If you’re looking to partner with an experienced property management company, Elevated Management Group is ready to work with you. We serve property and rental property owners all over New Mexico, offering the following services:
- Assistance with property sales and purchases
- Rent collections
- Rental application processes
- Maintenance requests
- Bill and mortgage payments
- Marketing
Our team can also support you in navigating complex landlord-tenant laws and understanding your responsibilities. Contact us today and let us know how we can serve you!
