CITY of ALBUQUERQUE
TWENTY SIXTH COUNCIL
COUNCIL BILL NO. O-25-102 ENACTMENT NO. ________________________
SPONSORED BY: Nichole Rogers
ORDINANCE
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Adopting The “Rental Practices Ordinance” To Codify Provisions Of New Mexico Senate Bill 267 (2025) Regarding Rental Practices, Screening Fees, Fee Disclosures, And Late Fees; Requiring Owners To Offer A No-Fee Payment Option (Rogers)
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WHEREAS, the New Mexico Uniform Owner-Resident Relations Act (UORRA), NMSA 1978 §§ 47-8-1 et seq., establishes statewide minimum rights and duties of owners and residents in rental housing; and
WHEREAS, the Unfair Practices Act, NMSA 1978 §§ 57-12-1 et seq., prohibits deceptive or unfair trade practices in consumer transactions, including the leasing of residential property; and
WHEREAS, the New Mexico Legislature, through Senate Bill 267 (2025), amended UORRA and the Unfair Practices Act to require owners to disclose rental-related fees, cap applicant screening fees, reduce allowable late fees, and expand private remedies; and
WHEREAS, the City of Albuquerque has the authority to adopt and enforce supplemental protections for residents to ensure fair rental practices consistent with state law; and
WHEREAS, the City Council recognizes that residents should have access to at least one fee-free method of paying rent, so households are not compelled to incur additional charges simply to meet their rental obligations, which can disproportionately burden low-income residents and undermine housing stability; and
WHEREAS, the City Council finds it necessary and proper to incorporate the provisions of SB267 into the City’s Housing Code to ensure enforcement at the municipal level and provide additional clarity and protection for Albuquerque residents.
BE IT ORDAINED BY THE COUNCIL, THE GOVERNING BODY OF THE CITY OF ALBUQUERQUE:
SECTION 1. A new Article 27 under Chapter 14 of the Revised Ordinances of Albuquerque, 1994 is adopted as follows:
§14-27-1 TITLE. This Chapter 14, Article 27 may be cited as the “Rental Practices Ordinance.”
§14-27-2 DEFINITIONS.
(A) "Applicant" means a person who submits an application to rent a dwelling unit to the owner or who agrees to act as a guarantor or cosigner on a rental agreement;
(B) "Deposit" means an amount of currency or instrument delivered to the owner by the resident as a pledge to abide by terms and conditions of the rental agreement;
(C) "Dwelling unit" means a structure, mobile home or the part of a structure, including a hotel or motel, that is used as a home, residence or sleeping place by one person who maintains a household or by two or more persons who maintain a common household and includes a parcel of land leased by its owner for use as a site for the parking of a mobile home;
(D) "Fair Rental Value" is that value that is comparable to the value established in the market place;
(E) "Owner" means one or more persons, jointly or severally, in whom is vested:
(1) all or part of the legal title to property, but shall not include the limited partner in an association regulated pursuant to the Uniform Limited Partnership Act; or
(2) all or part of the beneficial ownership and a right to present use and enjoyment of the premises and agents thereof and includes a mortgagee in possession and the lessors, but shall not include a person or persons, jointly or severally, who as owner leases the entire premises to a lessee of vacant land for apartment use.
(F) "Person" includes an individual, corporation, entity or organization;
(G) "Premises" means facilities, facilities and appurtenances, areas and other facilities held out for use of the resident or whose use is promised to the resident coincidental with occupancy of a dwelling unit;
(H) "Rent" means payments in currency or in-kind pursuant to terms and conditions of the rental agreement for use of a dwelling unit or premises, to be made to the owner by the resident, but does not include deposits;
(I) "Rental Agreement" means all agreements between an owner and resident and valid rules and regulations adopted under Section 47-8-23 NMSA 1978 embodying the terms and conditions concerning the use and occupancy of a dwelling unit or premises;
(J) "Resident" means a person entitled pursuant to a rental agreement to occupy a dwelling unit in peaceful possession to the exclusion of others and includes the owner of a mobile home renting premises, other than a lot or parcel in a mobile home park, for use as a site for the location of the mobile home;
(K) "Screening Fee" means a one-time charge that is charged to an applicant by an owner to recoup the owner's cost of purchasing a consumer credit report or reference check or the assistance of a screening service to validate, review or otherwise process an application for renting a dwelling unit;
(L) "Term" is the period of occupancy specified in the rental agreement.
§14-27-3 OWNER DISCLOSURE TO APPLICANTS.
(A) An owner shall disclose to applicants in plain language all costs of a rental agreement in a published listing of the dwelling unit, including the base rent that will be assessed and a description of all fees or charges that will be assessed during the residency, which shall be itemized and readily identifiable in the listing. An owner shall not be liable for violating this provisions for a third-party website's failure to represent all costs provided by the owner.
§14-27-4 DWELLING UNIT APPLICANT SCREENING FEE--PROHIBITED FEES.
(A) An owner may charge an applicant a screening fee that shall not exceed fifty dollars ($50.00) to cover the cost of obtaining information about the applicant, including the cost of a consumer credit report, a reference check or a screening service; provided that the owner:
(1) provides the applicant with written or digital notice of the screening fee and the applicant agrees in writing to pay the screening fee;
(2) shall not charge the applicant a screening fee when the owner knows or should know that a dwelling unit is not available for rent at that time or will not be available at the beginning of the residency;
(3) provides the applicant with a written or digital receipt for the screening fee paid by the applicant;
(4) shall place a hold on a credit card or wait to deposit cash or checks for an applicant's screening fee until all prior applicants have either been screened and rejected or offered the dwelling unit and declined to enter into a rental agreement; and
(5) shall not charge any other fees to process an application.
(B) An owner shall return the screening fee within thirty calendar days to an applicant if:
(1) a prior applicant is offered the dwelling unit and agrees to enter into a rental agreement; or
(2) the owner does not:
(a) obtain a consumer credit report;
(b) perform a reference check;
(c) use a screening service to obtain information about the applicant; or
(d) process the application.
(C) A screening fee that is returned as provided in Subsection B of this section shall be:
(1) returned by certified mail;
(2) destroyed upon the applicant’s request if paid by check; or
(3) made available for the applicant to retrieve.
§14-27-5 BACKGROUND CHECKS.
(A) An owner may require a background check of an applicant before entering a rental agreement. An owner shall not charge more than one screening fee to the same applicant if the screening was completed within ninety calendar days of the application date for any properties under the same ownership.
(B) An owner shall provide the applicant with a copy of any reports used to screen the applicant.
§14-27-6 NOTICE OF FEE CHANGES REQUIRED.
An owner may increase a fee that is provided pursuant to the terms of a rental agreement by providing written notice at least sixty days prior to the periodic rental date specified in the rental agreement or at least sixty days prior to the end of the term of a fixed term residency. In the case of a periodic residency of less than one month, written notice shall be provided at least one rental period in advance of the first fee payment to be increased.
§14-27-7 PAYMENT OF RENT.
(A) The resident shall pay rent in accordance with the rental agreement. In the absence of an agreement, the resident shall pay as rent the fair rental value for the use of the premises and occupancy of the dwelling unit.
(B) Rent is payable without demand or notice at the time and place agreed upon by the parties. Unless otherwise agreed, rent is payable at the dwelling unit. Unless otherwise agreed, periodic rent is payable at the beginning of any term of one month or less and otherwise in equal monthly installments at the beginning of each monthly period. The date of one month to the same date of the following month shall constitute a term of one month.
(C) Unless the rental agreement fixes a definite term, the residency is week-to-week in the case of a person who pays weekly rent and in all other cases month-to-month.
(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.
(E) An owner may not assess a fee from the resident for occupancy of the dwelling unit by a reasonable number of guests for a reasonable length of time. This shall not preclude charges for use of premises or facilities other than the dwelling unit by guests.
(F) An owner may increase the rent payable by the resident in a month-to-month residency by providing written notice to the resident of the proposed increase at least thirty days prior to the periodic rental date specified in the rental agreement or, in the case of a fixed term residency, at least thirty days prior to the end of the term. In the case of a periodic residency of less than one month, written notice shall be provided at least one rental period in advance of the first rental payment to be increased.
(G) Unless agreed upon in writing by the owner and the resident, a resident's payment of rent may not be allocated to any deposits or damages.
(H) An owner shall provide the resident a free option for rental payment.
§14-27-8 ENFORCEMENT.
(A) If the City identifies conduct by an owner that violates this Ordinance, the City shall promptly notify the owner of the violation, any penalty imposed, and any corrective actions required to avoid additional penalties.
(1) The notification shall be in writing mailed to the owner’s address as registered with Bernalillo County.
(2) If the owner disputes the violation, the owner may provide information that no violation occurred within ten days of receipt of the notice. If the City finds based on the evidence provided that there is no violation, a penalty shall not be imposed.
(3) If the violation is not cured within 15 days of receipt of the notice, each day the owner continues the violation shall constitute a separate violation.
(B) Mediation through the City Legal Department shall be offered as a way to remedy a disagreement between an owner and a resident regarding the provisions of the Ordinance.
(C) The penalty for each violation shall be no greater than $250 for the first violation, and no greater than $500 for each subsequent violation.
(D) The Planning Department, Code Enforcement Division, in collaboration with the City Legal Department, shall have authority to implement and enforce this Ordinance.
(E) Enforcement of the provisions of this Ordinance shall be both complaint-based, and proactive.
SECTION 2. SEVERABILITY. If any section, paragraph, sentence, clause, word or phrase of this Ordinance is for any reason held to be invalid or unenforceable by any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of this Ordinance. The Council hereby declares that it would have passed this Ordinance and each section, paragraph, sentence, clause, word or phrase thereof irrespective of any provision being declared unconstitutional or otherwise invalid.
SECTION 3. COMPILATION. SECTION 1 of this Ordinance is to be compiled as a new Article 27 in Chapter 14 of the Revised Ordinances of Albuquerque, New Mexico, 1994, titled “Rental Practices Ordinance.”
SECTION 4. EFFECTIVE DATE. This Ordinance takes effect five days after publication by title and general summary.