When Can Landlords Pass Through Costs in New Mexico?

If you rent a home or apartment in New Mexico, you might be wondering if and when your landlord can increase your rent to cover new costs, like property taxes, utilities, or repairs. These extra charges—often called "pass-through costs"—can be confusing. This article explains what pass-through costs are, when New Mexico landlords can raise your rent to cover them, and what rights and protections you have as a renter under state law.

What Are Pass-Through Costs?

In rental housing, pass-through costs are expenses that a landlord pays for a property that they choose to "pass through" (charge) to tenants, usually by increasing the monthly rent. Common examples might include increases in property taxes, certain utility costs, or required building improvements.

Unlike some states or cities with "rent control" or rent stabilization laws, New Mexico does not have statewide rent control. This means landlords generally have wide discretion in setting rent—but they must follow specific notice rules and cannot change your rent in the middle of a lease term.

New Mexico Laws on Rent Increases and Pass-Through Costs

The main New Mexico legislation that governs landlord-tenant relationships is the New Mexico Uniform Owner-Resident Relations Act^[1]. This act covers everything from rent increases to required repairs and evictions.

• No Rent Control: There is no state-level or municipal rent control in New Mexico; landlords can generally raise the rent as they see fit after a lease term ends.
• Notice Required: If you have a month-to-month rental agreement, your landlord must give you at least 30 days’ written notice before a rent increase takes effect (NMSA § 47-8-15(F)).
• During a Fixed-Term Lease: Rent—including new pass-through costs—cannot usually be increased during the term of a written lease unless your lease specifically allows for it.

Common Pass-Through Cost Scenarios

• Property Taxes: Landlords sometimes want to pass property tax hikes on to tenants. In New Mexico, this can only happen if your lease spells it out clearly and you get proper notice.
• Utilities: If you pay utilities directly, your landlord cannot suddenly charge you more. If utilities are bundled into your rent, your landlord may raise rent to cover higher charges, but must still give notice and wait until the lease term ends.
• Major Repairs or Improvements: Costs for improvements cannot be passed to tenants mid-lease unless written in your agreement.

Your Rights and What to Do If You Get a Rent Increase

If you receive a notice of a rent increase that includes pass-through costs, make sure the landlord has met their legal obligations:

• The amount of notice matches state law (at least 30 days for a month-to-month agreement).
• Your lease does not prohibit mid-term increases.
• The increase is not for discriminatory or retaliatory reasons (which are both illegal).

Required Official Forms

• Notice of Rent Increase (No official form number): Landlords must issue a written notice to tenants for any rent increase. There is no state-mandated template in New Mexico, but renters should keep a copy for their records. Sample letters and guidance are available from the New Mexico Legal Aid website: Landlord/Tenant Notice Templates.

Example: If your landlord emails or hands you a letter notifying a rent increase, you should check that the notice is dated and states when the new rent starts.

Who Handles Rental Disputes in New Mexico?

Disputes related to rent increases, including disagreements over pass-through costs, are usually handled in the local New Mexico Magistrate Court in your county, which oversees residential tenancy cases. You can learn more about Small Claims and landlord-tenant disputes on the official New Mexico Magistrate Court website.

FAQ: Pass-Through Rent Increases in New Mexico

1. Can my landlord raise my rent at any time in New Mexico? No. They must wait until your lease ends or, if you rent month-to-month, give you at least 30 days’ written notice.
2. Can a landlord charge me for repairs or building improvements? Only if your lease specifically allows it—otherwise, these costs cannot be passed on mid-lease.
3. What do I do if I think my rent increase is unfair or illegal? You can seek advice from New Mexico Legal Aid, or file a complaint with the NM Attorney General's Consumer Protection Division.
4. Is there a rent control board in New Mexico? No. Rent increases are only limited by the Uniform Owner-Resident Relations Act and your lease agreement.
5. How much notice must a landlord give for a rent increase? At least 30 days for month-to-month renters in New Mexico.

Conclusion: Key Takeaways

• New Mexico does not have rent control, but landlords must give at least 30 days’ notice for rent increases in most cases.
• Pass-through costs can only be charged if your lease allows and proper notice is given.
• If you believe a rent increase is unlawful, you can seek help from New Mexico courts or legal aid resources.

Staying informed about your rights is the best way to protect yourself from unexpected charges.

Need Help? Resources for Renters

• New Mexico Attorney General's Consumer Protection Division — file a complaint or get advice.
• New Mexico Legal Aid — free legal help for low-income renters.
• New Mexico Magistrate Court — official tribunal for resolving landlord-tenant disputes.
• New Mexico Mortgage Finance Authority – Tenant Resources

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1. New Mexico Uniform Owner-Resident Relations Act, NMSA 1978, Section 47-8-1 et seq. Available at: Full legislation text

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