Key answer: The cap is 5% of the rent due. New Mexico law does not mandate a grace period — the lease determines when a fee can be charged, subject to the cap.
| Rule | Detail |
|---|---|
| Fee cap | 5% of the rent due |
| Grace period | None mandated by state law |
| Must be in lease? | Recommended — safest way to enforce |
| Source | N.M. Stat. §47-8-15 (SB 267, 2025) |
With monthly rent $1500, the maximum late fee is $75.
What is the maximum late fee a landlord can charge in New Mexico?
The cap is 5% of the rent due.
When can a New Mexico landlord charge a late fee?
New Mexico law does not mandate a grace period — the lease determines when a fee can be charged, subject to the cap.
Does the late fee have to be in the lease in New Mexico?
Check your lease. In New Mexico the fee must be reasonable, and having it clearly written in the lease is the safest way to enforce it.
Can a New Mexico landlord charge a daily late fee?
Only if the lease allows it and the total charge stays within the legal cap — a daily fee cannot be used to get around the limit.
What happens if a New Mexico landlord charges an illegal late fee?
A fee above the legal limit can be challenged; courts may void the fee or the entire clause as unconscionable.
Did New Mexico late fee cap change recently?
Yes — the cap was reduced from 10% to 5% of base rent by SB 267, effective July 2025.
We have not confirmed a statewide rent-increase cap for New Mexico. Notice requirements depend on the lease type (month-to-month vs. fixed term) — check your lease and local rules.
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Not legal advice. Verify against your lease and local rules.
Calculate your New Mexico late fee