New Mexico Rent Late Fees: What the Statute Says
This page is about residential rent under New Mexico's landlord–tenant law. Charging a late fee on an unpaid business invoice? That is a different body of law: use the New Mexico late fee calculator for B2B invoices.
New Mexico sets an amount, a base and a notice deadline: under NMSA § 47-8-15(D), if the rental agreement provides for a late fee, the owner may charge up to five percent of the rent for each rental period that the resident is in default, calculated on rent only, and must give notice of the fee no later than the last day of the next rental period.
New Mexico rent late fee rule at a glance
- When a fee may first be charged
- When the resident "does not pay rent in accordance with the rental agreement". The quoted text sets no grace period.
- Maximum amount
- Five percent (5%) of the rent for each rental period that the resident is in default.
- What the fee is calculated on
- Rent only. "Rent calculations to determine late fees shall not include deposits, additional fees or utilities."
- Lease and notice conditions
- The rental agreement must provide for the charging of a late fee. To assess the fee, the owner must give notice of it "no later than the last day of the next rental period immediately following the period in which the default occurred."
- Statute
- NMSA 1978, § 47-8-15(D) (Uniform Owner-Resident Relations Act, NMSA 1978, section 47-8-15)
- Verified
- , against the official source
Each line above restates only what the statute text quoted below says. Where the text is silent, we say so rather than fill the gap.
What the New Mexico statute says
D. If the rental agreement provides for the charging of a late fee and if the resident does not pay rent in accordance with the rental agreement, the owner may charge the resident a late fee in an amount not to exceed five percent of the rent for each rental period that the resident is in default. Late fees shall be calculated only based on rent. Rent calculations to determine late fees shall not include deposits, additional fees or utilities. To assess a late fee, the owner shall provide notice of the late fee charged no later than the last day of the next rental period immediately following the period in which the default occurred.
Quoted verbatim from the linked official source, not paraphrased. How we source and re-check legal text is described in our data methodology.
New Mexico rent late fee limit calculator
Formula: amount × 5%. Example: 5% of $1,200.00 is $60.00. This is the upper limit in the quoted text, which applies where the rental agreement provides for a late fee or late charge.
How the New Mexico rule changed
The 5% limit and the rent-only rule come from Laws 2025, chapter 122, § 6. The compiler's annotation to § 47-8-15 in the official compilation states that the 2025 amendment, effective June 20, 2025, changed "ten" to "five" after "not to exceed" in Subsection D, and added the sentences on calculating late fees only on rent. Before that date the limit in Subsection D read ten percent.
Source: NMOneSource, NMSA 1978 § 47-8-15, history line and annotations · checked .
What this page does and does not cover
- It covers the state statute only (NMSA 1978, § 47-8-15(D)). It does not cover city or county ordinances or any other rules that may also apply to a tenancy.
- It covers residential rent. Late fees on invoices between businesses fall under New Mexico's commercial interest law: see the New Mexico B2B late fee calculator and the B2B vs. rent explainer.
- It states only what the quoted text says. Read the full section at the official link, or ask a licensed attorney in New Mexico, before relying on it.
New Mexico rent late fee FAQ
What is the maximum late fee on rent in New Mexico?
Five percent of the rent for each rental period that the resident is in default. NMSA § 47-8-15(D): the owner "may charge the resident a late fee in an amount not to exceed five percent of the rent for each rental period that the resident is in default." On rent of $1,200 for the period, that is at most $60.
Can a New Mexico late fee be calculated on utilities or other fees?
No. The statute says "Late fees shall be calculated only based on rent. Rent calculations to determine late fees shall not include deposits, additional fees or utilities."
When must a New Mexico landlord give notice of a late fee?
"To assess a late fee, the owner shall provide notice of the late fee charged no later than the last day of the next rental period immediately following the period in which the default occurred."
Does the lease have to allow late fees in New Mexico?
Subsection D begins: "If the rental agreement provides for the charging of a late fee and if the resident does not pay rent in accordance with the rental agreement".
Was the New Mexico rent late fee limit ever 10%?
Yes. The official compilation's annotation states that the 2025 amendment (Laws 2025, chapter 122, § 6), effective June 20, 2025, changed the limit in Subsection D from "ten" to "five" percent and added the rule that late fees are calculated only on rent.
Does this page cover business invoices in New Mexico?
No. This page covers residential rent under New Mexico's landlord–tenant statute. Late fees and interest on invoices between businesses are governed by different law, covered on our New Mexico late fee calculator page for B2B invoices. New Mexico late fee calculator (B2B invoices) →
Not legal advice. This page quotes New Mexico's statute for general information. The verification date shows when we last confirmed the text at the official source, not that it is still current today. Statutes change and courts interpret them.