Nice weather, beautiful beaches, kind and open-minded people, delicious food, and a prosperous economy with an immense potential. All these characteristics are often being associated with Mexico, and therefore making this country a dream destination for many people. That is why already more than 1,000,000 people from foreign countries have decided to settle down permanently in Mexico.
We at Welt Haus Bienes Raíces are a multicultural team of professionals in the real estate sector in and around Guadalajara. Due to different cultural backgrounds of our team, we experienced firsthand how difficult and demanding the process of renting a property in Mexico as a foreigner can be. During the years we made it our business and our passion to help local as well as foreign people to find their new dream home in Mexico. We are very happy to provide you in the following article with an overview of the rental process for long-term leases in Mexico, while giving you answers to the most important questions with regards to long-term rentals in Mexico.
The rental process
Renting property in Mexico as a foreigner does not differ very much from renting as a local citizen, nevertheless there are some important requirements and points to consider. Firstly, if you want to rent a property in a bigger city in Mexico, like here in Guadalajara, the landlord will normally require you to have a so called “fiador” / “aval”. A fiador or aval (in English guarantor) is a third party that vouches for you, in case you are not able to meet your obligations as a tenant. The fact that a fiador or aval has to reside in the same city you are planning to rent, and that the fiador / aval needs to own an unmortgaged property in the same city, usually represents a big hurdle for foreigners. Moreover, a landlord will normally ask the applicant to do a reference as well as a credit investigation, these checks are being carried out by third institutions and / or law firms and cost between 500MXN and 2000MXN. It is important that the landlord has the consent of the future tenant, in fact these checks are not required by law. When having a suiting fiador or aval, as well as an approved reference and credit check, the next step will be the elaboration as well as the signature of a rental contract before finally moving into your new home.
What if I don’t have a “fiador / “aval” (guarantor)?
As already mentioned in the previous section of this guide, a landlord in Mexico will usually require the applicant to feature a local fiador / aval. As a foreigner being new in Mexico it is very unlikely that you will have a fiador / aval. Alternatively, if you are working for a company in Mexico, your company might vouch for you by acting as the fiador / aval. If this should neither be an option for you, the payment of an additional deposit to the landlord can be suggested, nevertheless it is not always being accepted by the landlord and depends on the individual case.
How long does the rental process take?
Ideally, between presenting an offer by the applicant towards the landlord and finally moving into your new home 7 business day will pass. Nonetheless, if the documentation is not complete, if the credit / reference investigation is taking longer than expected, or if some work on the property has to be finished, the rental process can take easily longer than 7 business days.
What documents are required?
From the tenant:
The following documents are usually required to elaborate the rental contract in order to rent a property in Mexico:
- Official identification with photograph (passport)
- Bank statements of the last 3 months to prove financial situation
- A letter from the applicant´s employer (if available)
From the “Fiador / Aval” (guarantor):
- Official identification with photograph
- Proof of address (e.g. phone bill, electricity bill with address on it)
- Most recent property tax receipt
- Land registry entry of guarantor´s property with lien release document
If the “Fiador / Aval” is a company:
- Deed of corporation
- Official identification with photograph of legal representative of the company
- A letter of applicant´s employer
Who is paying the provision?
If contracting a real estate broker for searching a property for rent in México, you as the applicant will not have to pay any fees nor provision for the services provided by the real estate company. The provision in Mexico is always being paid to the real estate broker by the landlord.
How does a contract look like and what does it include?
A regular long-term contract in Mexico is for a 1-year lease of a property. There is no such thing as an universal contract for renting properties in Mexico, nevertheless the following information has to be included in the rental contract:
- The personal information of the parties involved in the rental contract (Landlord, Tenant, and Fiador / Aval if available)
- The date and the location where the signature of the contract is taking place at
- Information of the property (Location, characteristics, value of the property)
- The duration of the rental (including the start and finish date)
- The value of the rental, the amount agreed on between landlord and tenant
- The signature (of the landlord, tenant, and the fiador / aval if applicable)
This information represents the absolute basic content that has to be included in the contract. Of course, additional declarations, clauses, and conditions are normally added, but as mentioned before, there is no universal contract, so that contracts normally vary from case to case.
We at Welt Haus Bienes Raíces hope that we could help you with the information provided in the article and are very happy to answer further questions from you. Also, we would be very happy to help you with finding your new home in Mexico. Please feel free to contact one of our experts at any given time. Welcome to México!
Welt Haus – More than Real Estate.