Renting a House or Apartment in Mexico
Property types in Mexico
Apartment or a house?
I would personally always go for a house in Mexico as there are far less problems in reference to shared maintenance costs, noise and other factors.
Condominium or open street?
The cost of living in many condos can be very reasonable in Mexico and in my opinion it is the best route for newcomers. Also many condos have rules stating no noise after 11pm.
Open street living can be safe but you really need more local knowledge before deciding. Nearly all colonial property rentals in the centre of the city are on open streets.
A Furnished or Unfurnished Property?
I would suggest a lightly furnished property as the majority that are fully furnished won’t be to your liking.
Sharing a House or An Apartment
This is normally for students or those recently graduated from university, yes it can be super economical but is really uncomfortable for the majority.
Rooms for Rent
Many widowed pensioners in the historical centre of Mexican cities rent out one of their rooms to earn some extra income but they tend to be very selective as to who can rent one of these rooms and most have have very strict rules.
Property Sizing
All Mexican properties are advertised in Square Metres m2. A rough rule of thumb is to multiply the m2 quoted by ten to find the sq ft. For example 92 m2 is the same as 1000 sq ft.
Bathrooms
Nearly all Mexican properties have showers in the bathroom and it is rare to find one with a bath. Most middle income properties in Mexico have two complete upper bathrooms and one guest bathroom on the lower level.
Prices for Renting an Apartment or House in Mexico 2023
| House or Apartment | sq ft | m2 | Price |
| Unfurnished | 967 | 90 | $450 USD |
| Unfurnished | 1722 | 160 | $700 USD |
| Furnished | 967 | 90 | $575 USD |
| Furnished | 1722 | 160 | $900 USD |
Obviously these prices can vary greatly so I have tried to make them as mid range as possible, also these prices are for gated communities with the communal service fees included. You should add roughly $40 – $70 USD per month if you wish there to be a shared swimming pool.
Rental Contracts, IOU’s and Signing.
The rental prices may be negotiable with the landlord but the price would only be slightly less if there are many properties on the market in the same neighbourhood.
Short-Term Rentals
Get to know your potential neighbourhoods by staying for at least three weeks in an airbnb.com or booking.com rental and then do the same in two other neighbourhoods before signing any six month or longer rental agreement. Yes it is more money initially but you will have more peace of mind.
Six Month Contract
For six month rental contracts I could write down a list of property websites but it would be endless. I recommend you to just do a search online as follows; for a rental house in Queretaro search “casa en renta Queretaro” or for a rental apartment in Queretaro search “departamento en renta Queretaro”.
Also join the expat groups on forums or Facebook for the city or town where you wish to rent. The expats will recommend professional bilingual relators who are trustworthy and registered which the Mexican Association of Professional Realtors. These groups can also help you decide on which neighbourhood fits your needs.
Long-Term Contracts
You may get a better price when renting 12 months or longer but I would only do this after completing a six month contract with the same landlord.
IOUs (Pagares) in addition to the Rental Contract
In some Mexican states it is also common to sign IOUs (one for each month all signed ahead) in addition to the rental contract as the legal process can take a very long time for the owner to evict a non paying renter with just a rental contract. With the addition of IOUs the legal process to evict is far quicker for the owner and their lawyer.
A Separate Contract and an Additional Deposit for the Furniture?
This is rare and probably illegal but I have heard of a some landlords in Mexico trying to do it, say no and try to negotiate if they don’t agree just walk away. The normal rental deposit should cover all of a furnished property.
A Rental Guarantor
Virtually all rental contracts state a guarantor (aval in Spanish) must additionally sign the rental agreement in case you ever default on payment or damage the property. This guarantor needs to have a Mexican property in their name, be Mexican or at least have permanent residency.
These clauses can be a headache for many foreigners but thankfully many landlords are willing to negotiate by making you pay a slightly higher deposit or you will have to pay all the six months rent and deposit up front.
I have met many foreigners that managed to negotiate with the landlord to rent their airbnb.com or booking.com type property for six months after completing the initial short stay.
Póliza Jurídica an Alternative to Having a Guarantor
Some letting agencies or landlords may ask for a “póliza jurídica de arrendamiento” also known as “seguro de arrendamiento” if you don’t have a guarantor (aval). It is an insurance policy stating that it will cover legal costs to both parties in the event of disagreements. Like all insurance policies the details of coverage in each policy can vary greatly so read the fine print.
Letting agencies or finance companies should be able to provide you with a “póliza jurídica de arrendamiento” and the cost is normally 30 to 50% of one month’s rent and this cost should be shared between the landlord and the renter. The price increase of this policy per annum should be no more than 4%. The provider of a “póliza jurídica de arrendamiento” should also review the rental contract and IOUs (pagarés) at the time of signing the rental contract so both parties are in agreement.
Is The Rental Contract Legal?
Letting agencies normally have the rental contracts checked via their own lawyers if renting directly with a landlord you’d by wise to contract a lawyer to check the contract is legal for the state where you wish to live.
Property Inventory
The rental contract should also have attached a detailed inventory with photos / descriptions of the current property status including furniture when furnished.
Utility Bills
The renter is expected to pay the utility bills during the rental agreement. Many properties come without an internet connection so make sure the local internet providers state that their minimum contract are for six months and not 12 months
Paying the Property Rent and the Deposit
As is the norm in most countries you will pay the first month’s rent and the deposit in Mexico unless you agreed to pay up front the whole six months. Make sure you have a signed receipt for all the payments and / or proof of bank transfers when not paying in cash.
Be aware many landlords fail to return the deposit to the renter more on this below.
Returning those IOUs every month after Paying the Rent
If the landlord made you sign IOU’s (pagares) in addition to the rental contract they should be returned to you one by one every month after paying the rent due.
Documents normally required when renting a Property in Mexico
Your passport and your Mexican immigration visa card which needs to have the classification of temporary or permanent residency.
A bank statement showing your pension deposits or sufficient funds, this is more for retirees.
If you are currently working a letter from your employer or letter stating an offer of employment.
Rental Property Deposit Return in Mexico
Ok firstly make sure the property and furniture if any are returned in the same condition as it was first let, if not get it fixed or negotiate a price with the landlord to be discounted from the deposit return. Also the renter and the landlord should check the electricity meter reading to make a quick calculation of how much is payable by the renter since the last bill was paid, make sure you get a receipt for this.
Failure to Return the Rental Deposit
Now on to the bad news, many landlords in Mexico fail to return the deposit this doesn’t just affect foreigners it also happens to Mexicans. This problem is far less likely to happen if you get your rental via a letting agency.
The landlords know the majority aren’t willing to get lawyers involved due to time and money and even less so when you are a foreigner who may not speak good Spanish and wants to leave the country soon or move on to another city in Mexico. If you intend to stay in the same city you could get the lawyers involved if you and the landlord have a “póliza jurídica” (legal insurance policy) in place.
Alternative Terminology when Renting a Property in Mexico
The rental contract is normally worded as the “contrato de arrendamiento”.
Other words used for advertising properties to rent online: casa / departamento en alquiler, casa / departamento en renta and when walking around you’ll see signs outside properties with the wording se renta or se alquila.
Guarantor / Co-signer is commonly known as “aval” in Spanish but they may also state this as “obligado solidario”.
