Known in Spanish as Ley Nacional de Extinción de Dominio, the law enables a judge to immediately order the seizure of a property that is suspected to be part of a corrupt or illegal transfer chain (for example, if previous owners used illicit means to acquire it or build it) and/or if it’s suspected the property is being actively used for criminal purposes.

Legal quagmire if your property becomes entangled

Under this law, a property may be immediately seized without trial if the authorities present a petition to a judge and that judge deems that there are grounds to suspect the authorities have a genuine case.  The state may subsequently dispose of the property even before a trial has taken place. The law is causing some controversy especially in relation to a present owner’s risk of loss due to an illicit transaction history that the owner could not have known about.

If you buy a property in Mexico and, even years later, it’s discovered that the property was transacted illegally you could forfeit the asset and have no recourse to insurance coverages which would become null-and-void in this circumstance.

As the law is relatively new and untested there are no substantive case studies to reference regarding the appeal process.  In any event, legal costs to defend the asset would be substantial even if a subsequent trial ruled in the owner’s favor.

The law covers titled land, titled physical property (residential and commercial) and ejidos (communal land); as well as any assets situated on or linked to the property including valuables, goods, bank accounts, etc.

Definitions of ‘illicit uses’ of the property include —but are not limited to— organized crime, kidnapping or human trafficking, concealment, storage of stolen or illegal goods (e.g. cars, fuel, drugs), extortion, and money-laundering.

The wrong tenants could cause you to lose your Mexican home

This law also places the burden of responsibility of current use of the property directly on the owner.  If you rent your house out and the tenants use it for illegal purposes, then the state can seize the property from you with a writ from a judge.  In circumstances where your rented property is used by the tenants for illegal purposes it may prove impossible to get your home back or get compensated after the fact.

When you rent out your Mexican home you should be absolutely sure that detailed referencing and due diligence has been undertaken on potential tenants and that the people who apply and sign the rental contract are the same people who move in.  The contract should also contain carefully-worded legal clauses which specifically prohibit illicit use of the home.

Speak to your real estate agent or a lawyer or Notary Public to ensure your contract is current in respect of this new legal code.

The information contained in this article is published in good faith and not intended to constitute personal, professional, legal, financial or investment advice, nor replace the services of professional advisors.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Latest articles about property rental in Mexico
• Free Guide: House maintenance and home security
• Latest articles about property insurance
• Articles about real estate in Mexico

Comprehensive guide to real estate in Mexico for buyers, owners, sellers and renters—continually revised and updated.

Extensive and detailed guide to real estate in Mexico

Our comprehensive guides to real estate in Mexico introduce you to essential information about property in Mexico whether you are:

• Renting property in Mexico;
• Buying a home in Mexico;
• An owner who needs to insure and maintain the property;
• An owner who plans to rent a property in Mexico;
• Selling your home in Mexico; and
• Working with Real Estate Agents in Mexico.

Property rental in Mexico

We publish detailed guides about all aspects of property in Mexico, including renting residential property here.

Property purchase in Mexico

Connect to detailed and exhaustive guides about buying and owning property in Mexico.

Owning and maintaining a property in Mexico

Browse detailed information that helps existing property owners manage, maintain, and insure their property in Mexico.

Insurance for your home in Mexico

Helpful guides and insights to help you consider how to get the right level of coverage for your home and property in Mexico, including coverage against third party liability damages.

Selling your home in Mexico

When you come to sell your residential property in Mexico, our guides and articles give you practical insights to help you prepare, market and sell your property.

Working with realty agents in Mexico

Insights and tips for finding and working with a local realty agent in Mexico, whether you are renting, buying or selling a property.

Learn more about real estate in Mexico

We continually update our guides and articles about matters related to property and real estate in Mexico.  Connect to further resources for insights and connections:

• Latest insights about real estate in Mexico
• Latest insights about renting property in Mexico
• Tips and insights about insurance for your Mexican home
• Latest insights about realty agents and agencies
• Connect to professionals who can help with property closings

Finding a property to rent in Mexico

One of the first things to consider when you come to Mexico to live —whether part-time, full-time or for a defined period— is finding a house to suit your lifestyle needs.

Most people begin their search for property online, and a cursory glance at the Mexico’s principal property listing sites suggests that there are at least 100,000 residential properties for rent across Mexico right now.

Just as buying property successfully requires close attention to the location, the same rule applies for acquiring good rental property.  If you don’t know the area, we recommend you seek the help of an agent or other people you may know locally to help you gauge the locality and its neighborhoods.

The two articles below will help you to consider your accommodation needs and provide practical guidance about finding a home for rent in Mexico.

Property rental costs in Mexico

When you’re seeking property rentals in Mexico, you’ll find there is something for every budget, from rustic old casitas which may have limited services and suit someone who wants to get away from ‘the trappings of modern life’ (or perhaps as part of a writing, reading, painting, or meditation sojourn) to mansion houses offering every conceivable luxury—and everything in-between.

Rents in Mexico have been rising in recent years, especially in Mexico City and environs. The days when rents were a ‘bargain’ in Mexico appear to have passed, with property owners demanding higher rents and some tenants willing to pay a premium to live in certain locations (or areas within larger cities) and/or in newer, better appointed and maintained properties.

See the section at the foot of this article for a directory of the main property listing sites in Mexico.  Browsing these will help you get a feel for the market and gauge current rental prices at locations across Mexico.

Rental contracts: formal or informal?

Property rentals in Mexico can be informal or formal, depending on the circumstances.  References are usually asked for, but if you have been referred by a friend directly to the property owner no further references may be required. A contract should always be signed between the parties, even with informal arrangements, to avoid misunderstandings.

Formal property rentals in Mexico

Renting formally usually involves the services of a rental agent, although formal deals can also be negotiated with property owners directly.

When a property is rented formally in Mexico, landlords or their agents usually (but not always) ask the prospective renter for a guarantor (in Spanish known as an ‘aval’), who must be someone who owns property outright in Mexico (and this must be in the same Mexican state where the rental property is situated), and is willing to provide a guarantee, in the form a lien on their own property, to guarantee the rent and the condition of the rented property.

In this circumstance, if the renter ceases to pay the rent or causes damage to the property, the property owner can make a legal claim on the guarantor (or guarantor’s asset) to recover the rent owed or to repair damage.

The agent (or landlord) might also undertake a credit check with Mexico’s national credit agency, known as the Buró de Crédito to assess the individual’s ability to afford the rent (but credit checks are not common).

Informal property rentals in Mexico

As many people may not have an aval guarantor as described above (and foreign residents will usually find it impossible to find such a person) there is a very buoyant informal rental market in Mexico.

In this situation, property owners rent homes informally to individuals, holding a deposit, which is usually equivalent to one or two-months’ rent.

Some property owners also ask for dated IOUs (in Spanish known as pagarés) —one pagaré for each month of the rental agreement— as a form of collateral against the rent owed over the coming year, and each time the rent is paid, a dated pagaré is returned to you.

No credit referencing takes place, and the entire arrangement is made (semi)informally. Property owners might not ask for a tenancy agreement to be signed, but most will; and most will ask for at least two written personal references.

We recommend you have some form of written agreement in place to protect your interests, secure your dwelling space for the term you have agreed, and avoid misunderstandings.

Tip: When dealing directly with property owners, you will find that they tend to discern whether they want to rent the property to you during your first dealings and meeting together. How much rent you pay and what deposit is required can also be decided at this initial stage. If you are dealing directly with the property owner, be aware that their first impression of you will count.

Rental contracts: typical terms and conditions

The property owner, or their agent, will ask you to sign a lease and these are typically ‘template’ contracts drawn up by a legal firm with a set of standard clauses, although you ought to take time to read through it carefully and understand what you are agreeing to.  Contracts are usually written and struck in Spanish.

Initial deposits and rental terms

Deposits and contract terms are by negotiation. One month’s rent deposit is usually the minimum asked for and in formal rentals, you might be asked for a guarantor or asked to sign a legal document that makes you personally liable for the rent and any property damage beyond wear and tear. (See the previous section about formal and informal rentals for more details.)

Property rental periods

Property rental periods vary depending on the property type and the circumstances, and are subject to negotiation.

Formal rentals: If you rent a home formally, you can usually expect a minimum contract term of 12 months (this might be negotiable to 6 months, depending on local demand).

Informal rentals: When renting informally, some property owners insist on a minimum term, usually 3, 6, or 12 months.  However, some landlords will be willing to rent on a month-by-month basis, and this type of arrangement can be ideal if you are visiting Mexico for only a short while and don’t want to stay at a hotel the whole time, or when you need a temporary base while you are scouting for property to rent longer-term or hunting for a house or land purchase in the local area.

Short-term vacation/turn-key rentals: Some luxury or vacation homes, marketed principally for leisure or to short-term visitors, are rented by the week (or even by the night).  Some of these luxury homes might sometimes be rented for longer terms (a month or longer) at a discount in the ‘off season’ when they would otherwise be left empty; you should contact the owner to discuss this possibility if you are interested in this option.

Rent payments and annual rent increases

Rents are usually paid directly to the property owner, even if you used an agent to find the property, although some agents collect rents as part of their service, especially if the owner is overseas.

Rents are either paid in cash or by transfer to a Mexican bank account.  Most rents are due monthly; occasionally you might be asked to pay every two weeks, although this is rare these days.  Lease agreements typically cite a 5-day grace period each month, although its good practice to pay rent on time, every time, as this builds trust and rapport with the property owner.

If you are on an extended stay, be aware that rents in Mexico tend to go up annually. Unless otherwise specified in your contract, rents can go up by any amount the property owner sees fit, and you may have only a brief window of time (usually a month or two) to move out if you can’t agree on the increase.  Notice periods are usually one month, although you should check your rental contract for these details.

Insurance coverage for your personal items

The owner ought not to have a clause in the contract that places any responsibility of the physical property or structural maintenance on account of the tenant.

You may wish to insure the contents and your personal belongings, and defend yourself against certain third party risks with an insurance policy. Learn more about contents and third party insurance for renters/tenants in Mexico.

Checking out from a rental property

Check your contract to see how much notice you need to give; most contracts will require you to give one month’s notice.  Most contracts have a set period (6 or 12 months) and are renewable thereafter by negotiation.

Talk to your local agent or your property owner about this.  Be sure to give the property owner and/or agent plenty of notice (in writing) prior to your planned departure.

If the property was furnished, you should go through the inventory with the property owner (or agent if you used one) and provided everything is in good order, your deposit will be returned to you, either directly by the property owner or (rarely) by the agency office if they held the deposit.

Key questions to ask about house rentals in Mexico

When you are exploring a residential property rental in Mexico, it’s helpful to ask some key questions in relation to the property’s characteristics and amenities as not everything you might expect to be available will be present at every property you consider.   Here are some key questions to ask:

If you have pets

If you have a pet(s) your first question to ask is whether they will be accepted at the rental property.  Many property owners forbid pets (although some will accept a cat) so check this detail with the owner or the agent early in your conversations.  Read the practicalities of finding a house rental for more details about this.

Electricity and gas supply

Check the details about the supply of electricity and gas to the property, and ask about the age and current state of the water heater.  You might like to ask for copies of recent electricity bills to see how much it typically costs at that property.  If the water heater is very old, ask the owner (or agent) if it can be replaced.

Water supply

Check the water situation: how is water supplied to the property?  Ask about the state of the shower (or check this when you visit), and whether there is a water purifier (water for drinking) adjacent to the main tap in the kitchen; ask if it requires maintenance, and when the filter was last changed.  Most properties have a water pump, for pressure; ask about this; it’s current state and whether it’s automatic, or manual.

Swimming pool maintenance

If there is a swimming pool, ask about the arrangements for its maintenance—and who will pay for things like chemicals, cleaning, filters, etc.

Phone and internet services

Is the phone connected? Is the phone line and internet package included in the rent, or do you pay extra for this?

If you rely on internet access, check with the phone company to ensure that there are lines available locally if there’s no live service at the property: even if there’s a physical line at the property, the local distribution point may be saturated.

If you need internet services and there are no lines available, you might consider using home WiFi delivered over the cellular data network, or if the property is situated in a remote area, you might need satellite internet.

Check all appliances

Check any appliances that might come with the rental. The oven, hob and fridge are worth checking; if the property is older, these are likely to be old too, and you may want to get a plumber in to service the oven and hob (or ask the owners to do this).  Older gas-fired appliances are best checked regularly and you might like to install a carbon monoxide detector too.

Old fridges and washing machines use considerably more electricity than newer models. In some cases, you may need to get ovens and fridges replaced, and you might have to fund this yourself if the owner is unwilling or insists that they don’t need replacing when they are passed their useful lifespan.

Ask about maintenance and planned works

Are there any maintenance problems you should know about? If it’s a house, and it has a garden, ask if there are any tools, hosepipes, etc. you might need to maintain the garden.

The property owner might know a gardener you can hire. Some rentals include the services of a gardener, but not all. Large gardens require considerable work and require a lot of water that can be especially tricky during the dry season.

Ask the owner (or agent) if there are any planned maintenance or repair works scheduled to be done at the property, and consider how these might affect you, and how they might help to improve the property to your benefit.

Property rental listing sites in Mexico

These are the principal sites to check when you’re scouting for a property to rent and to gauge rental prices.

Learn more about property rentals in Mexico

We publish extensive local knowledge about real estate and property rental to help you find a suitable home for rent in Mexico:

• Finding suitable accommodations for your lifestyle in Mexico
• The practicalities of finding a property rental in Mexico
• Latest articles about property rental in Mexico

Factors that may influence accommodation choices

Everyone’s situation has unique attributes when they’re moving, although there are several common factors that tend to influence the choices regarding accommodations, including:

• how long you intend to stay in Mexico—shorter stays will usually preclude a home purchase, but not all people who intend to stay long term will buy a house;
• your familiarity of Mexico—if you know Mexico and have friends or family here, this will likely influence your approach to finding accommodations; and
• any existing arrangements—some people already have property in Mexico they can move into, although sometimes the property is in a different location to where they want to live now; also
• specific circumstances and financial means—you might have specific reasons for wanting to rent or buy, and your decisions might be facilitated or restricted based on your financial means.

Renting before buying

If you do decide to buy property in Mexico, you might consider renting first to get a feel for the area(s) you’re thinking about moving into, before committing to a place or neighborhood—even if your preference is to buy and you have the financial means to do so.

If you already know the area you want to live in from previous experiences, you might only rent for a brief time in temporary accommodations while you scout for and buy a property in Mexico.  Some people buy soon after they arrive, perhaps on impulse, although most people rent (or stay with friends or family) at least for a short while beforehand.

Mexico’s house rental market

Most people who come to Mexico to live for the first time start out by renting a house here, and we recommend that people unfamiliar with the country begins by renting in the first instance—if only on a temporary basis.

Renting property gives you flexibility that can be helpful, although you’ll have to purchase a house in Mexico to benefit from the widest choice of property types available and obtain a dwelling space that suits your needs in detailed ways which rented properties are unlikely to be able to.  Renting property might also place other restrictions upon you; for example, many rentals don’t allow pets.

Rental properties are plentiful in Mexico, but the practicalities of finding a decent rental that is adequate for your needs takes time and effort, patience, and a degree of luck in respect of the listed properties during the timeframe that you are scouting the market.

Some real estate agents will help you scout for properties, although many agents prefer to only deal with property purchases and sales because the income available to them from rentals is materially lower than income generated from property sales.  If you intend to rent before you buy, let the agent know this, because some agents who don’t normally deal with rentals are sometimes prepared help potential future buyers to rent something locally in the near-term.

Buying a house in Mexico

People with intentions to stay longer in Mexico trend toward buying a property as soon as practical, as it can represent a better investment over the long term—provided that you choose wisely, that includes settling in a location that properly suits your lifestyle intentions, and that you don’t overpay for the property.  It’s better to buy less house in an optimum location than more house in a sub-optimal location.

Buying also gives you a much wider range of options than renting and enables you to shape the living spaces as you’d like them. It might also be sensible to buy sooner in a place where the market is buoyant, and prices are rising.

Choosing to buy a property in Mexico enables you to find a place that is more precisely suited to your lifestyle needs and can also encourage you to ‘put down roots’ in the location you have chosen—this is related to the level of commitment you have in relation to your move to Mexico.

Mexperience offers extensive articles and guides about real estate in Mexico that help you to discover the property market here, whether you are a buyer, an owner, or a seller.

Financing a property purchase

Many people moving to Mexico have capital available to them to purchase a home here —especially retirees— through investments and savings, or with equity that has accumulated in their existing home.

However, some people moving here might need or want to finance a home in Mexico.  Most foreign residents who buy property in Mexico do not need or seek credit, although real estate financing in Mexico is available through various specialized finance houses.  Our guide to real estate in Mexico includes a complete chapter about real estate finance.

Owning a house in Mexico

Home ownership is a responsibility whichever country your property is located in. Once you have moved to Mexico and taken possession of your home, whether you own your property in Mexico or are just renting it, there will be certain matters to organize and deal with on a regular basis to keep your house properly maintained and secured when you are home and away. With some local insights and forward planning, the maintenance and security of your home in Mexico should pose no major headaches or inconveniences.

Mexperience publishes a comprehensive guide to home maintenance and security in Mexico with tips and practical knowledge to help you manage your home in Mexico, keep it secure and prevent your Mexican home from falling into disrepair.

Insurance for your home in Mexico

Whether you’re buying or renting a home, it’s prudent to consider insurance for your home and personal possessions.

Mexico is subject to hurricanes (if your property is near the ocean) and earthquakes (whether you’re by the sea or inland) and it makes sense to protect your investment with an adequate home insurance coverage plan to protect your asset as well to cover you against third party liabilities, e.g., a tree falling onto your neighbor’s property and causing damage or injury.

If you’re only renting, you can buy an insurance plan to protect your personal items from loss due to flooding, burglary, etc.

Selling a house in Mexico

When you purchase property and eventually come to sell your home, there are different routes to market, agents to consider, processes to follow, and paperwork to organize.  Our guide to real estate in Mexico includes a full chapter dedicated to helping home sellers.

Working with a local realty agent

Finding and working with a local realty professional can be a worthwhile investment.

A well-established agent will be able to provide you with insights into the local area and community, brief you about locales and neighborhoods that could be appropriate (or otherwise) for your needs; and when you buy a house with the help of an agent, they might also assist you by connecting you to local groups, associations and perhaps even new acquittances that could become friends.

Renting out your Mexican home

If you purchase a home in Mexico, you might plan to rent out your Mexican home, in part or in its entirety.  Mexperience offers helpful articles that share insights about this, and our guide to real estate includes a chapter about renting.

Further research and resources

Mexperience offers you a comprehensive online resource of information and local knowledge to help you discover Mexico, explore choices, find opportunities and plan a new life in Mexico.  Resources include:

• Articles about lifestyle planning in Mexico
• Discover places to live in Mexico
• Principal routes to legal residency in Mexico
• Latest articles about lifestyles in Mexico
• A regular Mexico Newsletter you can subscribe to for free

Most people begin their search for property online, and a cursory glance at the main property portals suggests that there are ~100,000 residential properties for rent in Mexico right now.

Searching the market for a rental property

With plenty of inventory to choose from, securing a rental should in theory be straightforward; but when you begin a search in earnest, you’ll discover the practicalities of securing an adequate rental home in an appropriate locale will present challenges and force you to make compromises.

A search for property in Mexico normally begins online. Realty agents and word-of-mouth are two other popular ways to find a home here. When you begin to search, you’ll find that while there’s lots of inventory, the quality and/or situation surrounding many homes offered for rental is not ideal.

Searching for Mexico home rentals online

Classified ads for property have proliferated in recent years through online sites that specialize in this market. The most popular sites to search properties and connect with owners or the agents representing them are Vivanuncios, InMuebles24, MetrosCubicos and Homie.  These sites also help you to get an indication of rental prices in a given locale, which is helpful when you come to negotiate the rent.

Finding home rentals through local realty agents

Realty agents operate in every town and city and some can help you find a rental home in Mexico.  Some agents are professionally established, others work informally and/or part-time.  Agents’ fees emanate entirely from landlords paying them a commission; tenants do not pay any fees directly to the agent.  The realty agents only earn a small fraction from property rentals in comparison to what they earn from property sales, and homes for rent are often represented by multiple agents all vying for a limited pool of potential renters. Experienced agents often won’t deal with rentals unless they sense that the people renting might eventually become buyers in the same locale.

Finding a rental by local word-of-mouth

If you’re already in Mexico, or have a friends or family network here, you might be able to find a rental by word-of-mouth. These can often work out to be the best arrangements as people renting decent houses prefer to have them rented through a personal referral.  You usually end-up dealing directly with the landlord, who might or might not draw-up a formal contract.  If you deal direct, we suggest you get agreements in writing, whether those are formal or informal, to avoid misunderstandings later.

Short term rental options in Mexico

If you’re searching for something short-term on the ‘turn-key’ basis, perhaps while you search for a long term rental, consider renting a serviced apartment, which are are available for rent in Mexico’s larger towns and cities.

Serviced apartment rentals in Mexico

These are ideal for short visits, or when you need a ‘turnkey’ furnishing arrangement that includes phone and internet connections with self-catering facilities to avoid the higher cost of hotels and eating out every day.  The rent usually includes all utilities and the services of a cleaner/housekeeper once a week.

There are lots of different companies offering serviced apartments.  To find companies specializing in serviced apartments, go online and search for ‘serviced apartments in [location name]’ depending on where in Mexico you want to stay.

Room rentals in private homes

Another option for short-term rentals is to rent a room or annex in someone’s home, or a serviced bungalow.  People renting rooms or other spaces (e.g. annexes, or bungalows) in their homes in Mexico advertise these on Airbnb, as well as Homestay and Tripping.

These accommodations are intended for shorter periods and can be useful when you need a place to stay to scout longer term options in Mexico with accommodation that is less expensive than a hotel or serviced apartment—and potentially more personable, too: the homeowner renting the room might also have local contacts who can help you find a longer term rental in Mexico, if that is your intention.

Housing types available for rent in Mexico

The selection of property types available depends where in Mexico you’re seeking a rental.  The most common types of rental properties are apartments, condos, and houses on their own land within a residential neighborhood.

Apartments and condos

In Spanish, these are called departamentos and condominios. These are the two most common type of property for rent; some condos are classed as ‘condominios horizontales’ which are single or two-story homes joined together at the sides instead of being stacked.  Condos and apartment blocks may also be part of gated communities.

Houses and family homes

Casas. These are usually family homes situated on their own plot of land, usually within a residential area or defined neighborhood of the town or city.  They might face a public road; or they may be part of a fraccionamiento, that is a gated community; or be inside a cerrada or privada, that is a gated or private road.

Countryside properties

Some locations offer specialist or unusual homes, usually away from urbanized centers, although close enough to a significantly-sized town or city for access to services and amenities.  Typically, these offer:

• rustic casitas, in essence, a rudimentary country cottage;
• bungalows, that can be on their own property, on a shared property with other bungalows, or shared within the grounds of a larger home; and
• country houses, that can range in size from 1-2 bedrooms, to larger estates with at least 3 or 4 bedrooms (and possibly more), ample reception areas (which may also include features like terraces and roof gardens) as well as extensive well-tended gardens; they might also have their own swimming pool.

Some countryside properties may be situated near or on a golf course, or overlook a lake or the ocean; others may be situated in quiet neighborhoods of a small village or town.  These countryside property types are more often found tucked away in a rural idyll, a short (or long) drive away from the nearest town or city.

Rental costs in Mexico

Rents vary depending on the house type, location, seasonal demand, as well as other factors.  Mexico has a range of property portals that list properties for rent (and purchase) in Mexico.

These are the principal sites to check when you’re scouting for a property and to gauge rental prices:

Physical state of rental houses in Mexico

Mexico’s house rental market is diverse and the physical state of the property will vary tremendously—along with the fixtures, fittings, and other features of the home.

Condos and apartments offer modern convenience

Most people rent contemporary apartments and condos as these are the most convenient and well-appointed homes on the market: usually of recent build, they include a range of modern amenities, their fixtures and fittings are in good shape, and security and maintenance are taken care of when they are part of a gated community. (Note that gated community fees may or may not be included in the rent; you should check this to avoid surprises.)

Older properties with more character

If you’re seeking something less ‘boxy’ and more charismatic, you’ll find that older homes in traditional Mexican neighborhoods (perhaps rented by families who no longer occupy them) can offer charm but can also exhibit dilapidation with fixtures and fittings that are old, dated, and which may not be in full working order.

Property owners don’t tend to reinvest very much of the rent in these types of older properties, and are seldom willing to spend money on significant upgrades (they might simply not have the capital).

If you’re interested in the charms of a charismatic property that has dilapidations and is being offered for rent, you might ask if they are willing to invest in renovating key rooms of the house, or you might try offering a lower rent in lieu of dilapidated conditions, perhaps on the basis that you’ll undertake some minor repairs or some improvements to make it more comfortable for your stay.

Things to watch for when considering older properties include:

• State of the electricity supply.  Old homes may have old electricity wiring and old breaker boxes: these can cause issues especially during the rain season when electricity supplies can fluctuate and older electrical installations might not protect your appliances.
• Kitchens and bathrooms: Some older homes or rustic casitas, even relatively expensive ones in desirable locations, may have old or makeshift kitchens (some ‘kitchens’ will have a basic sink and little else); and bathrooms may be old and outdated—functional but might exhibit drainage and other issues.
• Roof tiles and roof sealant: Most homes in Mexico have flat roofs with tiles on top, or have the concrete roof sealed to prevent water seeping through during heavy rainstorms.  Check the state of the roofing when you visit the property and if it looks worn or weathered, ask questions about when it was last sealed, or when the tiles were cleaned/cleared of mold, moss and debris.
• Corrugated roofing: Some roofing and side awnings (for example, for laundry areas) present on older properties are created using corrugated roofing: metal or fiberglass are popular; roofing in very old properties might be asbestos.  Take note that corrugated roofing is very noisy during heavy rain storms that are prevalent in many regions across Mexico between May and October.

Luxury home rental market in Mexico

Luxury homes, and brand-new properties being rented for first-occupier use are available in many locations and will usually be presented in excellent shape, but the rents for these are considerably higher.

These homes offer comfort, convenience, modern amenities, and some offer a ‘turn key’ solution with furnishings and other homewares in place, ready for you to move in and live with a minimum effort.

Some luxury rentals also offer ‘all inclusive’ utilities (often with exception of electricity that is charged extra), although in these cases the utilities are managed on your behalf, so there’s no need for you to call the telephone and other utility companies to arrange and manage your service supply, as this is taken care of for you.

If you are on a limited budget, you might consider the advantages of renting a less expensive house that you can spend some money ‘making comfortable’ for yourself, and that will work out less expensive if you intend to rent longer term.

Services and utilities available at the house

Check to see what services and utilities are available at the house you intend to rent before you pay a deposit or sign a contract.

Electricity and gas supply

Virtually all homes for rent in Mexico, except those in very rural or secluded areas, will have electricity and most will have a natural gas tank to heat water and for cooking.

Check the source of water supply

Water supply will depend on where the property is situated: in urban areas this will usually be via mains water feed; in outlying and rural areas this might be from a local well, or you might have to take water deliveries from a truck—check this with the agent or landlord before you agree to rent. Drainage will either be via mains sewerage in urban areas, or a self-regulating septic tank system in rural areas.

Telephone and internet services

Internet services are widely available in urban areas but cross-check this if the house is situated in a (semi)rural area, or in a new or recently developed area.  If there are no telephone or cable lines available, wireless home internet service might be available.

Gardens, maintenance, and security in a rental home

When you take on a rental house in Mexico, you’ll need to consider how you will take care of the property to ensure your deposit is returned.

Large gardens offer attractive outdoor spaces which are ideal in Mexico’s agreeable climates, although they do require time, effort or money (to pay a gardener) to look after. Reasonable wear-and-tear is accepted in the home, but you’ll have to make-good any damages, plug-holes in walls and cover marks when you leave.

If the rental property is not situated inside a gated community, you may need to take extra measures to defend against burglary.

Download and read our free eBook about home maintenance and security for details.

Renting a house with pets in Mexico

If you have pets, particularly dogs, your choice of available rental properties will be more limited in Mexico. Many property owners here explicitly forbid pets on the property as part of the rental contract, usually due to potential damage pets may cause as well as the issue of having to clean the property afterwards.

If the property you intend to rent is a house on its own with a garden, there is a higher likelihood that pets will be accepted.  Homes inside gated communities and condo buildings tend to be the most restrictive. (Often the restrictions are due to covenants associated with the building itself; for example, pets may be banned from certain condos.)

If you have one cat, you might be able to persuade an owner who otherwise does not allow pets to let you rent. In any event, if pets are allowed, you might be asked to pay additional damage and cleaning deposits when you move in.

If you are using the services of a real estate agent to find a rental property, then be up-front about having pets from the start to prevent you both from wasting time  scouting for and reviewing properties that will not allow pets.

Dealing with house-related issues while renting

Appliances included in the rent may fail, fixtures and fittings may break, and events like electrical storms, hurricanes and earthquakes can cause significant issues to arise that you’ll need to deal with.

If the home you are renting requires some improvement or repair and you want to do this yourself, the landlord might negotiate to have specific work undertaken in lieu of rent —in Spanish this is termed as ‘a cuenta de renta’— and we suggest you get any agreement for proposed works in writing before committing to the expense.

For more serious issues caused by floods, storm damage, or earthquakes, you’ll need to deal with the landlord on a per-case basis.  In the event of a force majeure, the landlord will need to make-good any structural matters, but your personal goods are your own responsibility.

Home insurance for renters

You can protect your own personal furnishings and items for loss caused by burglary, storms, and earthquakes by purchasing a renter’s home insurance coverage—these are less expensive as they only cover the tenant’s belongings, not the structure of the property.

End of rental term, checking-out, and deposits

Review your contract to determine when you need to start renegotiating the rental agreement, the rent to be paid, and any notice you need to give to the landlord before you vacate the property.

Provided that the house is returned in the good order —allowing for domestic wear-and-tear— your deposit should be returned to you. Some agents provide an ‘escrow’ service between the landlord and tenant in regard to rental deposits; but this is not very common in Mexico and your deposit is often paid directly to the landlord on trust of its return. Some landlords will accept the last month(s) of rent in lieu of the deposit they hold.

Renting versus buying in Mexico

We recommend that people moving to Mexico rent first before buying—unless you have good prior knowledge and experience of the area and feel confident that you want to live there.

Some people come to Mexico and rent a home for many years through a long-term and stable contract. However, rental contracts are often subject to unforeseen termination: two common reasons include a family member needing use of the property, or the owner or family deciding to sell it.

Renting almost always requires compromises to be made

Whatever rental home you find in Mexico, it’s unlikely to deliver everything you want; and any improvements you make will remain with the house when you leave—whether or not the landlord paid for them in lieu of rent.  If you’re in Mexico for the long-haul, you’ll need to buy a home here to get the property you really want, benefit from any improvements you make to it, and have the peace of mind to know that a landlord’s whim or personal circumstances won’t force you to move.

Learn more about property rentals in Mexico

We publish extensive local knowledge about real estate and property rental to help you find a suitable home for rent in Mexico:

• Finding suitable accommodations for your lifestyle in Mexico
• Finding and managing your property rental in Mexico
• Latest articles about property rental in Mexico

Online marketplaces for private rentals

The three principal online marketplaces facilitating private rental transactions are AirBnB, HomeStay and Tripping.  They are blossoming across Mexico as travelers embrace the idea of using shared accommodation offered in private homes instead of staying at commercial hotels.  The demand has been significant enough to catch the attention of major online travel agents like Booking.com, who have also begun to operate in this market.

For travelers, these shared spaces in private homes offer choice and variety in accommodations; and for hosts there is the prospect of earning additional income by renting rooms, an annex, or even the entire property.

If you’ve got space in your Mexican home to share on a short-term basis, this article explains key points to consider when starting and managing a shared accommodation rental.

Setting-up your physical space

Before you can rent un(der)-occupied spaces in your home, you’ll need to prepare the physical space to receive guests, and set-aside the time and energy to host them.  In these online marketplaces, buyers are given instant access to a copious supply of offers, so even a small handful of lukewarm reviews about the space you offer can prejudice your chances of obtaining the next booking.  If you’re serious about generating an income this way, you should create an agreeable space for others to share and be prepared to invest the time required to operate the endeavor.  Take time to browse the existing inventory of offers in your local area and you’ll discover that there’s something for every taste and budget; you’ll need to consider which ‘local niche’ you want to serve with the space you have on offer.

Setting-up your online profile and marketing

When you’re ready to receive paying guests, you can apply to become a host on one or more of the online marketplaces set-up to market your offer and facilitate bookings.  AirBnB dominates and drives this market, and their presence in Mexico is impressive; consider marketing your home on other platforms too, including HomeStay and Tripping.  To further extend your reach, you might also promote your accommodations through major online travel agencies that serve this market, like Booking.com.  You should use high-quality photographs (or hire a professional photographer) to present your offer and ensure that what you publish online accurately reflects what guests will experience when they arrive.

Managing your shared space rental in Mexico

Here are some tips about managing your shared space rental when it’s being actively promoted using an online marketplace:

Profile updates

You should review your profile(s) regularly to keep up with any changes and improvements you might make to the spaces you’re offering for rent, as well working to actively improve descriptions based on your experience of hosting guests.

Managing availability

If you don’t intend to offer your shared spaces throughout the year, you’ll need to actively manage your availability calendar to shut-out dates when you don’t want paying guests staying in your home. If you are promoting your home lodgings across two or more marketplaces, you’ll need to ensure that you reconcile the availability calendar across all of them when you receive a confirmed booking.

Being responsive

Potential guests may write to you asking questions, and you’ll need to respond in a timely manner.  They might be making inquiries with several hosts in the area and they will be mindful of how quickly each one responds.

Managing reviews

Each guest that arrives to stay in your home – whether that’s a room, an annex or the entire property – will be encouraged to rate the experience and leave a review.  You, as the host, will also be asked to rate the guest as well as have an opportunity to respond to the review left by the guest.  You need to work hard to earn high ratings and positive reviews, and you need to respond to negative ratings and reviews quickly and decisively. Insufficient reviews can put-off potential guests, and a small handful of lukewarm or poor reviews (especially those with an inadequate response) can severely curtail future bookings. Hosts tend to become subservient to guest reviews in an effort to present their offer in a good light to potential future guests.

Covering your costs

The rates you can charge will depend on the level of demand in the location where your home is situated, the quality and style of the accommodations you offer, as well as the extent of local competition—from other guest houses as well as local hotels and inns.  Running a guest service takes time and effort and can be stressful at times. In addition to the expenses incurred as you host multiple guests on a regular basis (e.g. consumables, changing linens, cleaning, etc.) there is additional wear-and-tear to manage and pay for, commissions to pay to the online market operator for each confirmed booking, and taxes to set-aside from the income you earn.

Other considerations

In addition to the practical aspects of opening-up your Mexican home to paying guests, there are some significant matters to consider when you plan to participate in these online marketplaces, which include:

Your resident visa status

Renting out your property in Mexico –even if it’s only a single room– constitutes a remunerated activity.  If you are a foreign resident here, you should ensure that your resident visa privileges allow you to earn an income in Mexico.

Declaring the income

You should talk to an accountant in Mexico about the tax implications of renting your Mexican property using online marketplaces.  The income that hosts earn from renting personal accommodations is taxable, and hosts are obliged to declare and pay income tax on those earnings.  AirBnB in Mexico now reports hosts’ incomes directly to the Mexican tax authorities and hosts may receive letters from the tax office advising them of tax liabilities owed from that rental income.

Home insurance

Some of the online marketplaces offer hosts an insurance coverage if guests damage the property or suffer personal injury while booked-in at the property.  While that may cover you for incidents related to guests who made a booking through the marketplace, note that the practice of hosting paying guests in your home while you are present there will probably invalidate your current home insurance policy. Most residential policies dis-allow what is referred to by insurers as ‘simultaneous occupancy’—renting part of your home (e.g. a room, or an annex) to third parties while you are living on the property. This risk is treated differently by insurance companies and thus a regular domestic policy will not cover you; you’ll need to seek out a commercial policy which is likely to be considerably more expensive. If, on the other hand, you rent the entire property and vacate the property while the renters are present, then a regular domestic policy will probably suffice.  Check the wording of your existing policy and see our guide to insuring your property in Mexico for further guidance.

Mortgages and tenants

If your home is mortgaged, take care to seek permission from the lender before you participate in these online marketplaces as most financiers prohibit their debtors from renting space in the home as part of the terms of the mortgage.  If you are a tenant in someone else’s home, check the terms of your rental contract and seek explicit written permission from the landlord before you attempt to sublet any rooms or other spaces in the house.

Wear and tear

Keep in mind that general wear and tear on your property will be higher when you’re renting it to strangers and you should account for this in your rates to cover for general upkeep and maintenance as well as minor damages which cannot be sensibly claimed on any insurance policy.

Legal issues

All the online marketplaces which offer shared spaces for rent and facilitate the arrangements between guests and hosts state in their terms and conditions that it is the host’s responsibility to comply with local laws and regulations concerning the rental of property. If you are in doubt about any rights or obligations you or paying guests may have while staying in your home, talk with a qualified lawyer in the state where the rental property is situated.

If you decide to rent your entire home on a longer term basis, read our articles about home rental in Mexico, especially the one about the need to know who is renting your home, to avoid possible loss of your asset.

Conversations at dinner parties inevitably include talk about the potential of renting a room or annex in one’s home and about someone else who’s doing it already and earning a worthwhile income.

Travelers actively consider services like Airbnb, HomeAway and Tripping as a choice alongside hotels, and sites like Booking.com are offering shared spaces in private homes alongside traditional hotel rooms.

There are pros and cons of renting a shared space in a private home instead of using a hotel and these are discussed in detail on our main article about the subject.   Irrespective of the wider arguments, shared space rentals led by Airbnb have materially altered the accommodations market in Mexico.

Hosts who tend to do well are those with homes in popular neighborhoods in big cities as well as those with homes in smaller towns and resorts popular with tourists, especially weekend visitors.  Satellite towns and cities within a 2-to-3-hour drive of the capital —including Valle de Bravo, Tepoztlán, Cuernavaca, Puebla, Taxco and Tequisquiapan— are among the places where hosts offering accommodations via Airbnb can do particularly well at weekends.

The local economies of these towns and resorts are getting more trade as they are no longer constricted by static-supply hotel accommodations.  Shared spaces in private homes are increasing supply generally while creating an elastic and dynamic system that flexes to the demand, for example, when an Expo or festival is taking place locally.

A downside of this trend might be oversupply.  Some quiet provincial towns —an attraction for some— are becoming less quaint and more crowded.  In picturesque towns around Mexico City, it’s not unusual to see traffic jams forming on a Sunday afternoon as the scramble to get back to the capital —and Monday morning’s inbox— plays out in places which extended a well-earned break and some fresh air to the capital’s corps of office workers.

For travelers and visitors: If you’re planning to visit or travel across Mexico and don’t mind sharing spaces in private homes, there has never been more (and growing) choice: there’s something for every taste and budget, from off-grid rustic bungalows lost in the countryside to sumptuous rooms carefully appointed to match any comfortable hotel.

For homeowners: If you’ve got a home in Mexico and want to join the ranks of those generating a side income, demand for space is high especially if you live in or near a big city, in a picturesque tourist town near the capital, or a popular ocean-side tourist resort.  As we explain, offering space for rent in your Mexican home can be worthwhile, but there are matters to consider and some upfront investment is required.