A New Mexico Rental Application is a convenient tool that simplifies gathering information from potential tenants, aiding decision-making before offering a lease agreement. It is essential to ensure that the necessary information is collected while respecting the rights of the applicants.
Laws
- Application Fee – Non-refundable
- Fee Limits – No limits
- Security Deposit – § 47-8-18(A) – Landlords can request a month’s rent for tenancies under a year. They can charge more for longer tenancies while being obligated to pay the tenant annual interest equivalent to the current passbook interest rate in savings and loan accounts in the state.
Application Fees
Property owners must be aware of their renters’ rights. Some of the essential points to keep in mind regarding New Mexico rental law include the following: [1]
There is no limit to the fee that a landlord can charge, but they should charge a reasonable amount approximate to the cost of processing the rental application and conducting background checks.
Fair Housing Protections
Property owners must follow the Federal Fair Housing Act and the New Mexico Human Rights Act. [2] This means that landlords are not allowed to ask questions about the following:
- The gender identity or sexual orientation of the applicants.
- The national origin, ancestry, color, or race of the applicants.
- Any religious beliefs that the applicants might hold.
- The age or marital status of the applicants.
- Whether they have a physical or mental disability.
There are some exceptions to the protected classes above. For example, the owner can ask whether the applicant has children and if the owner will live in the building they are renting out.
Furthermore, if the landlord’s property is owned or operated by a religious group or company, they can ask about the applicant’s religious beliefs. [3]
However, they cannot ask questions about any areas covered by the other protected classes above.
The State Sex Offender Registry may also be required.
Security Deposit Limits
- Security Deposit: A landlord can charge a security deposit. If the rental agreement is less than one year, the security deposit must be at most one month’s rent. If the agreement is one year or more, there is no limit to the security deposit that a property owner can charge. However, for deposits that are more than one month’s rent, the landlord must pay the tenant annual interest on the deposit. [4]
- Separate Account: While the law does not explicitly require landlords to keep security deposits in a separate account, it is a good practice to avoid commingling tenant funds with personal or business accounts.
- Return of Security Deposit: Landlords must return the security deposit, minus any deductions for damages or unpaid rent, within 30 days after the tenant moves out. If deductions are made, the landlord must provide an itemized list of damages and charges along with any remaining deposit.
Pet Deposit
New Mexico does not have laws regarding pet deposits, but federal law mandates that landlords accommodate tenants who require service animal assistance.
Sample
We have a New Mexico rental application form you can use to ensure you include all the required questions.
