So you have decided to move to Mexico for a long period of time?
Excellent choice. It’s a great country and a lot of us are very happy living here. It’s no coincidence there are currently over 1.5 million ex-pats living in the country coming from all over the world.
Now it is time to start figuring out the logistics and researching all the details you need to know to avoid any kind of surprises.
Finding long-term rentals in Mexico is very similar to renting in any other country, however, there are some requirements you need to be aware of and a couple of tricks that will help you find the perfect place for you.
This article will guide you through the process. Let’s get started.
Can you rent in Mexico as a US or European citizen?
Yes. You can rent a house or an apartment in Mexico as long as you are legally in the country. It doesn’t matter where you are coming from or what kind of visa you are on.
Some landlords might have additional requirements for foreigners. For example, I have been asked to show proof of income and to demonstrate those funds come from a legal source, but for the most part, you will have no problem finding a place to live in the country that fits your budget and needs.
Just remember that if you are on a tourist visa, you will need to renew it every 6 months and you will have to go back to your country of origin to do so. The solution to avoid that if you are planning to stay long-term in Mexico, is to apply for a temporary resident visa (the equivalent of a green card), that allows you to stay in the country for up to 4 years. You can make an appointment for that on the Secretaria de Relaciones Exteriores website.
Currency
Places up for rent in Mexico will be listed in either Mexican pesos (MXN) or US dollars (USD). In popular tourist or ex-pat towns like Tulum, Cancun, or San Miguel de Allende, most deals will be made in USD. In trendy or expensive neighbors in the big cities like Roma, Condesa, or Polanco in Mexico City, you will also be able to pay in USD, while in the rest of the country, owners will generally prefer to be paid in pesos. Be prepared to have an easy way to automate the conversion of your rent every month so you don’t run into any issues.
House rental laws and requirements in Mexico
Most of the requirements to rent a house or apartment in Mexico are established in the “ley de arrendamiento” (leasing/renting law) of the Mexican Federal Civic Code, between articles 2398 to 2496. In short, you can expect the following rights and obligations.
- Security deposit – The landlord is allowed to ask only for a maximum of one month’s rent as a security deposit. The landlord is only allowed to keep the deposit or deduce a percentage of it in case of damages caused by the tenant when they vacate the property. All deductions that seem unfair to the tenant can be challenged through the courts.
- Maintenance – The landlord is required to pay for maintenance/fixes as long as the issue wasn’t caused by the tenant. The tenant must notify the landlor of any repair needs immediatly after detecting the issue.
- Broker Fees – If you are going through a broker/agent, the landlord will cover their fee. But in Mexico it is less common to use an agent unless it is for more expensive properties. Almost all rental deals are negotiated directly with the owner.
- Insurance – The tenant is not responsible to cover insurance costs.
- Utilities – The law does not establish anything about who is responsible for utilities, but in Mexico, 90% of the time the cost of rent will include water, electricity, and property taxes (predial). On the other hand, gas, phone landline and wi-fi aren’t included. In some of the hotter cities where the use of AC is necessary, the electricity bill is sometimes not included. Make sure to ask your landlord what utilities are included and that this is all clearly defined in the contract.
These requirements might change slightly from city to city and between landlords but in general, they’ll be very similar.
In case of any disagreement with your landlord, you can contact PROFECO, a government agency that deals with cases of abuse to consumers.
As for requirements. Most owners will ask for the following documentation:
- Official ID – Your passport will do.
- Proof of income – Proof that you can cover the costs of rent and that the source of the funds is legal. Expats usually present their last 3 bank statements.
- “Carta de antecedentes penales” – This is a criminal record/background check. This requirement can be waived for foreigners, but if you can present the equivalent documentation for your country, it might help your chances of getting the place.
- “Aval” – An aval, or fiador is a third party that serves as a local guarantor/co-signer that is made legally responsible for any damage to the property or debt incurred by the tenant. If you are working in Mexico, your company can act as your guarantor. If you don’t know anyone in the city that can do this for you, it is still possible to negotiate with the landlord by offering a higher security deposit than usual. This is generally an important and standard requirement in Mexico and will not be easily negotiable. In fact, if you see a listing that seems good otherwise but claims that no “aval” is necessary, that is bit of a red flag.
- “Referencias personales” – These are simply one or two personal recommendation letters. They can be written by former bosses, co-workers, friends, etc. These are not very important but you should at least know what it means in case you get asked for one.
Avoiding common rental scams
Unfortunately, just like in every other place in the world, there’s always someone trying to take advantage of other people who don’t know the local laws and customs. Avoiding the common scams in Mexico is relatively simple, and it will mostly take just common sense.
First of all, do not deposit or pay anything to “secure your spot”, as an “advance”, or for “processing costs”. This is the most common type of scam out there. Once you have made the deposit, the “agent” will disappear and it might turn out the place was never even up for rent. You should not give any money until you have a signed contract and you are giving the security deposit and the first month of rent.
If the price is too good to be true, it probably is. Make sure to check the rent costs of other properties in the area to make sure what you are being offered is in a similar range.
If you don’t know Spanish, do not sign anything until you have it reviewed by someone else. Lawyers in Mexico are not as expensive as in the US. Hiring one to either draft the contract or at least review it can be as cheap as $20-$40 USD and it is absolutely worth the peace of mind.
Standard rental practices in Mexico you should know
While the process for renting a place in Mexico is pretty much the same as anywhere else, there are some local practices that are not that common in other countries. I’ll list the so you don’t get surprised by them.
In Mexico, using escrow services is rare so you will need to make sure all the “i” are dotted before signing anything. If you’d like to use one, most owners will agree but expect to be asked to cover the fee yourself.
As I mentioned in the requirements sections, a co-payer/guarantor called aval or fiador is required for rentals above a certain price range. This is because the laws to chase down debtors in Mexico are a bit flimsy so landlords have adopted the practice in order to protect themselves.
A notary (notario) is sometimes requested by the tenant. A notario is a lawyer that has a license to function as an impartial, objective third-party in a contract signing. They help mediate any dispute, make sure the contract is fair for both parties, and help prevent future legal issues by providing certainty to both the tenant and the landlord. The notary will co-sign the contract and register it with the Property Public Registry which gives both parties more options in case of a future dispute. The notary fees will generally be split between the two parties.
How to find long-term rentals in Mexico
Mexico is a big country. The availability and amount of options you will have when it comes to looking for a place to rent is going to be determined by the city or town you choose to live in. Of course, the price will also vary depending on the type of experience you want to have, but here are some general tips that will help you find the best long-term rental deals in Mexico.
Websites to look for rentals
The best deals are always going to be listed on the local websites in Spanish. There are some English websites where you will find plenty of options, but a lot of times you will find the exact same listing at a higher price either because there’s an added commission or because the owner thinks they can overcharge tourists.
Airbnb works in Mexico, but it is mostly used for short-term stays due to its higher prices. I do recommend using it, but only while you are scouting for your long-term rental.
So learn some Spanish or get some help from a friend who does and browse the following sites instead:
Facebook marketplace – In Mexico, Craiglist isn’t used at all. All the kinds of listings that you would search for on Craiglist (used bikes, second-hand products, etc), will be on Facebook marketplace instead. It’s also a good starting point when you are looking for rentals. While the number of listings is limited, you will find some of the better-priced deals here. Do note that it is the least regulated place on the list, so make sure to do your due diligence before signing any contract.
Walk around the area – In Mexico, a lot of places up for rent will simply put up a sign on the balcony or door. If there’s a specific area you are looking to rent at, simply walking around and calling the phone number on the sign is surprisingly an effective way to go about it.
Inmuebles24 – The site with the most listings in Mexico. About 50% of the listings are through real estate agents and the rest are directly posted by the owner. The most varied selection but due to commissions, you will also see some listings 10% or 20% above market rates.
metroscubicos – Listings of places for rent and for sale. Good selection, but the site doesn’t make any background work on the listings so thread carefully and make your due diligence.
Tecnocasa – This is a big real estate agency with plenty of listings. Their fees are high which reflects in the prices of the properties, but you can trust them.
segundamano – An ebay-like site that has a real estate section. You will find housing listings mixed with storage units and office space, but you’ll occasionally find great deals here.
roomgo – This one is exclusively for people looking for roommates. If your Spanish is decent and you don’t mind sharing an apartment/house with someone else, it’s worth a look.
Summary
- There are a lot of options when it come to finding long-term rentals in Mexico. There are houses and apartments for all kinds of budgets.
- The process is mostly the same as in any other country with a few local practices, like requiring a co-payer/co-signer for almost every rental above a certain price.
- To find the better deals and get things done safely, it’s always best to learn some Spanish and/or hire a local lawyer to make sure the lease contract is good.
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