New Mexico month-to-month lease agreements are governed by Chapter 47 of the New Mexico Statutes. It is the Property Law chapter. Landlords may not request a security deposit that is greater than one month’s rent for month-to-month leases. When the landlord returns the security deposit, they must also provide the tenant with interest earned on the security deposit according to state law. When the renter moves out of the rental unit, the landlord must return the security deposit within 30 days. However, the landlord may retain part of the security deposit for nonpayment of monthly rent, unpaid utilities, and damage to rental property beyond normal wear and tear. If the landlord keeps part of the security deposit, they must provide the tenant with an itemized list of deductions.
Landlords and property managers should understand state laws and federal laws related to New Mexico residential lease agreements. Seeking legal advice can be beneficial before issuing a notice of termination for non-compliance or even entering into a new lease term with a prospective tenant.
Under § 47-8-37, the notice period for lease termination is 30 days. It must be submitted as a written notice.