If you're a REALTOR® who also manages rental properties, a new state law—Senate Bill 267 (SB 267)—brings important updates you need to know.
Signed into law on April 8, 2025, this legislation makes significant changes to the Uniform Owner-Resident Relations Act (UORRA) and the Unfair Trade Practices Act, focusing on applicant fees, disclosures, and late charges.
Here are the key highlights for property managers:
New Screening Fee Rules
Property owners can now charge a screening fee (max $50) to applicants, but only:
- If the unit is actually available,
- If the applicant agrees in writing,
- And if a receipt is provided.
- The screening fee must be refunded if no screening occurs or the unit is already rented.
- Only one screening fee per applicant is allowed within a 90-day period.
Mandatory Disclosure of Rental Costs
Listings must include all rental costs upfront, including:
- Base rent
- Any fees or charges during the lease term
- All fees must be itemized and clearly identified in the published listing.
Notice Required for Fee Increases
Fee increases must be communicated in writing:
- 60 days in advance for month-to-month tenancies
- At least one rental period in advance for shorter-term leases
Late Fee Cap Lowered
- Late fees are now capped at 5% of rent only (down from 10%)
- Fees cannot be based on deposits, utilities, or other charges
New Violations = Unfair Trade Practice
Charging undisclosed or unauthorized fees is now considered an unfair or deceptive trade practice, which carries additional legal risk.
These updates are designed to promote transparency and protect renters—but they also increase compliance responsibilities for housing providers. If you manage properties, be sure to update your rental agreements, listing practices, and screening procedures to stay within the law.
NMAR Form 6108 - New Mexico Uniform Owner-Resident Relations Act
Full Bill Text: SB 267 Final Version
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