There are a few laws that must be followed in New Mexico when you create a rental application for tenants. Failure to comply with these rules could lead to serious legal consequences and allow the tenant to sue.
Application Fee
There is no limit in terms of what application fee can be charged by New Mexico landlords (No statute). Furthermore, the application fee is non-refundable regardless of its amount.
Security Deposit
New Mexico landlords may charge up to 1 month’s rent as a security deposit for rents of less than a year (§ 47-8-18). There is no limit when the lease is 1 year or longer, but the landlord must pay the tenant annual interest.
Housing Discrimination Law
In New Mexico, there is no specific state law relating to housing discrimination. However, the Fair Housing Act (FHA) is in place. The FHA states that it is illegal to discriminate based on the following characteristics:
- Race
- Nationality
- Religion
- Sex
- Familial status
- Disability
- Criminal history
As a consequence, you are not allowed to ask for any of these details on an NM Rental Application form, nor to include them in the decision-making process.
Notice of Eligibility
Tenants must be told about any specific screening criteria, as well as the reasons that they could be denied or approved by the landlord. To show that this information has been shared, a signature of acknowledgment from the tenant is required (NM Stat § 7-1-4.4)
Consent Credit Check
Under the Federal Credit Reporting Act (FCRA), tenants being screened in New Mexico must consent to any credit checks you wish to carry out (NM Stat § 56-3A-4). To make sure you comply with the law, the applicant must provide written acknowledgment of the screening on the application form.