New Mexico late fee laws for rent: the 5 percent cap and the notice deadline
New Mexico caps a late fee at 5 percent of the rent for each rental period the resident is in default, and only if the rental agreement provides for a late fee. Under 47-8-15(D), as amended by Senate Bill 267 of 2025, the fee is calculated on rent alone, and the owner must give notice of the fee by the last day of the next rental period.
What does section 47-8-15(D) say now?
The Uniform Owner-Resident Relations Act says that if the rental agreement provides for the charging of a late fee and the resident does not pay rent in accordance with it, the owner may charge a late fee in an amount not to exceed five percent of the rent for each rental period that the resident is in default. Senate Bill 267 of the 2025 session cut the earlier limit to the current five percent.
Many websites still say 10 percent. Those pages describe the old rule. Check the date on any guide before you copy a number from it into a lease.
What counts as rent when you calculate the fee?
The amendment adds that late fees are calculated only based on rent, and that the rent used to determine a late fee does not include deposits, additional fees or utilities. If a tenant pays $1,200 rent plus $85 for a pet fee and a $60 utility bill on one invoice, only the $1,200 counts toward the 5 percent.
| Rent | Utilities and fees on the bill | Fee base | Ceiling at 5 percent |
|---|---|---|---|
| $1,000 | $0 | $1,000 | $50.00 |
| $1,200 | $145 | $1,200 | $60.00 |
| $1,650 | $210 | $1,650 | $82.50 |
What does "each rental period" mean for repeat fees?
The cap is stated as an amount per rental period in default. A resident who stays in default for two monthly periods can be charged for each, but never more than 5 percent of the rent for the period in question. The wording does not support a daily charge that adds up beyond that percentage inside one period.
Example a made-up owner in Albuquerque rents a unit at $1,200 and the lease provides for a late fee. The tenant misses the March rent entirely. For March the ceiling is 5 percent of $1,200, or $60. The tenant still has not paid in April, so April is another period in default and another $60 is possible, for $120 in late fees over two periods. A $75 flat fee in the lease would exceed the $60 ceiling and could not be enforced above it.
When must you tell the tenant about the fee?
To assess a late fee, the owner must provide notice of the fee charged no later than the last day of the next rental period immediately following the period in which the default occurred. For a default in March, notice of the fee should go out by the end of April. Send it in writing, keep a copy, and state the amount and the rental period it belongs to.
What should you keep on file?
Write the notice date down. Because the deadline runs to the last day of the next rental period, a fee for a March default that is first mentioned in May is outside the window. Setting a recurring reminder for the first week of each month for any account in default keeps the notice on time.
How DoorKeeping handles it in New Mexico
DoorKeeping sets late fees within your state's caps, so a fee rule you approve is measured on rent only and cannot exceed 5 percent, and the tenant gets a reminder. Rent and payments stay in your own bank accounts. DoorKeeping never holds your money and sends a payment only when you approve it. This is general information, not legal advice. Confirm your lease with your own New Mexico attorney.
Sources
Questions
- What is the maximum late fee in New Mexico?
- Five percent of the rent for each rental period that the resident is in default, if the rental agreement provides for a late fee (47-8-15(D)).
- Do deposits or utilities count toward the New Mexico late fee?
- No. Late fees are calculated only on rent, and the rent used for the calculation does not include deposits, additional fees or utilities.
- How long does a New Mexico owner have to give notice of a late fee?
- No later than the last day of the next rental period immediately following the period in which the default occurred.