New Mexico state law does not explicitly address the practice of subletting. A tenant’s lease will determine whether or not a premises may be sublet to a third party. Typically, the lease will either prohibit it entirely or it will define the conditions under which a sublease arrangement is permitted.

Open communication with the landlord is recommended if the lease is unclear or silent on the subject of subleasing. Whenever permission to sublease is desired or required, consider using a Landlord Consent Form.

Short-term rentals (STR) in New Mexico are subject to “gross receipts tax,” which is similar to sales tax. The actual rate of this tax varies throughout the state. Additional local lodgings taxes may be levied, depending on the rental’s location.

New Mexico taxes on short-term rentals:

• Gross receipts tax^[1]
• Local lodgings tax^[2]

Some cities also require that the rental be registered/permitted. The additional cost and application process will vary by city.