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A property owner who wants to rent a commercial or residential property in New Mexico should understand the necessity of a lease agreement. This document ensures that everyone knows what's required of them, protects the tenant and landlord, and tells potential tenants what they should know.
Generally, you should use this document to include the terms you wish to uphold within the unit. This includes landlord-tenant laws, recurring fees, termination terms, and rules for evictions.
Below, you learn what a New Mexico lease should include. Plus, you find out tips about property management software to make the process less stressful.
Residential Agreement
A lease agreement is a contract signed by the tenant and landlord so that the tenant may use the real property as a dwelling in exchange for payment (rent.)
The document states the rules associated with living there, the person authorized to be on the residential property, and what livable space they have access to. Generally, leases can't break any rental laws that New Mexico creates.
You can also create commercial leases to rent out commercial property for work purposes.
What to Include
The lease should include the rules you wish to enforce while the tenant is living on the property. Here are a few common ones:
Rent
The state statutes do not mention a rent due date or grace period. Therefore, the property owner/landlord may charge a late fee if the monthly rent isn't paid on the specified day in the lease.
Since state legislature doesn't cover an indicated time period, the lease should include information about late fees. The amount can't exceed 10 percent of the total payment.
Security Deposit
Landlords can only charge a security deposits maximum amount of one month's rent for leases under one year. Otherwise, it can be any reasonable price.
The landlord has 30 days after the lease termination date, and the occupant moves out to reimburse the security deposit to the tenant. This can be minus unpaid rent and damages the landlord must fix.
Right to Entry
Generally, landlords must provide written notice 24 hours before entering the tenant's property. However, if tenants require repairs, landlords may have seven days to fix the issue.
Build Your Own
Mandatory Disclosure
Below, you can find the required disclosures a landlord should include in the rental contract:
- Landlord Name/Address - Any person authorized to perform obligations, such as the landlord or owner, should disclose their address and name for future legal notices to be sent properly. This should be included in the agreement or provided in writing to the tenant before tenancy begins.
- Late Fee Disclosure - Late fees should be outlined in the agreement to be enforced. This should include the amount of the fee, the date it was assessed, and more. It can't exceed 10 percent of the overdue monthly payment the tenant is required to pay.
- Lead-based Paint - Federal law states that homes built in the US before 1978 must include the risks of lead paint. A special form is used and attached to the agreement. Plus, the tenant should be given a pamphlet approved by the EPA. Landlords must offer additional reports and records about the hazards and presence of lead paint if it's known.
Why DoorLoop?
Most people think crafting leases is easy, but it's overwhelming at all stages. Landlords must ensure everything is correct or risk being unable to enforce it.
Property management software is excellent. With a free form or two from DoorLoop, you can upload templates in seconds, auto-filling them with information.
It's possible to craft a New Mexico commercial lease agreement to rent out your commercial space or write up a New Mexico sublease agreement to allow someone else to take over payments from the original tenant.
eSignature
Nowadays, being able to sign leases electronically is a must, and DoorLoop makes it easier than ever.
With DoorLoop, you can turn your lease form (or any other document you need signed) into template that you can reuse, autofill the tenant's info onto it, and securely send it for eSignature through your tenant portal.
You can find new tenants in the first place by syndicating your listings on Zillow, Trulia, Hotpads, Apartments.com, and more. You can also find the best tenants by screening your prospects in seconds through DoorLoop. The best part is, there’s no more paper applications! Your tenants can fill out their rental application online and be screened (and selected!) in seconds.
To learn more about DoorLoop, learn more or schedule a free demo.
Conclusion
Everyone needs a factual source for creating leases. These agreements protect both parties, but they can't do that if they're not written correctly. With great property management software, you'll be able to customize every lease to ensure that it covers everything you and your tenants need. To learn more about how DoorLoop makes lease management easy, schedule your demo here.
FAQs
How long are lease agreements in New Mexico?
A rental agreement in New Mexico should have a fixed term of one year. The landlord and tenant may agree to a longer lease, but it must be in writing.
Is a standard residential lease agreement legally binding?
Yes, leases are legal and binding within New Mexico. The landlord must present the tenant with the contract, and it must be signed by both parties to be enforceable.
Does a New Mexico standard residential lease automatically renew?
Yes, leases may automatically renew. The landlord often includes a clause describing the actions the tenant should take to end a lease if they wish to do so. Typically, that means offering a 30-day notice to move.
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