Renting - The Expats Guide for Living in Mexico

Are you tired of struggling to make ends meet? Do you dream of a life where your hard-earned money goes further?

The answer could be Mexico with a low cost of living compared to the US, Canada and Europe your dollar will stretch further than you ever thought possible.

This article will provide an in-depth overview of the cost of living in Mexico in 2023, including housing, food, transportation, utilities and healthcare.

Housing

The cost of housing in Mexico varies depending on the location size and type of property, in popular beach destinations like Puerto Vallarta, Cancun or Los Cabos can be higher than in less touristy areas.

In Mexico City the capital and largest city in Mexico the cost of housing can range from affordable to expensive. A typical two-bedroom apartment in a mid-range neighborhood can cost around $700 USD per month (2023). If you prefer to live in a more upscale area you can expect to pay around $1,100 USD per month (2023).

In the smaller cities or towns the cost of housing can be even more affordable. A two-bedroom apartment in a city like Querétaro can cost around $400 to $500 USD per month (2023).

It’s worth noting that in Mexico many apartments are rented unfurnished which means you will need to purchase your own furniture, appliances and other household items.

Utilities

In addition to rental prices there are other costs associated with housing in Mexico, utility bills are not normally included in the rent and can add up to an addition of $75 USD per month (2023) and an internet connection with a decent speed will cost around $35 USD per month (2023).

I would avoid cable TV as you’ll get far better programs in English or your native language on the internet platforms like Netflix, Amazon, etc.

Food

Mexican food is famous around the world for its delicious flavour and variety. As an expat in Mexico you’ll be able to enjoy a wide range of affordable and tasty food options whether you prefer street food or fine dining there is some something for everyone.

Eating Out

A meal in a local restaurant can cost you around $4-6 USD for the menu of the day (2023) . While a meal in a more upscale restaurant can cost $15 to $25 USD per person (2023).

Home Cooking

If you prefer to cook at home you could expect to pay around $270 USD per month (2023) for groceries as a single person. This includes basic food items like rice, beans, meat, vegetables and fruits.

In addition to food costs there are also costs associated with dining out such as tipping in Mexico it is customary to leave a tip of 10% of the total bill in restaurants and bars.

Transportation

The cost of transportation in Mexico will depend on the mode of transportation and their location in major cities like Mexico City or Guadalajara public transportation is cheap and convenient.

A Metro ride in Mexico City costs around 30 US cents while a city bus ride is roughly 35 US cents (2023).

Taxis and services like Uber are also affordable with the average cost being around $4 – $5 USD (2023) for a short ride 5 km – 3 miles.

If you are planning to travel around the country there are several bus companies that offer comfortable and affordable long-distance travel. A one way ticket from Mexico City to Guadalajara (550 km / 342 miles) for example will be around $50 USD (2023).

I would avoid the additional expense of owning your own car until you’ve had at least six months of living in Mexico.

Healthcare

Unfortunately we all get sick at some point and healthcare prices can really vary in Mexico, I’ll provide a short resume in this article as the subject has so many variables.

State Healthcare

If you are around 60 years old and in fairly good condition expect to pay between $700 – $1,000 USD per annum (2023) for the cheapest state healthcare program. This is currently called IMSS BIENESTAR before it is known as the Seguro Popular, be aware the wait times could be never ending for many services.

Private Healthcare

A private healthcare insurance policy in Mexico for a 50 to 65 year old with no pre-existing conditions would be paying somewhere between $2,500 to $4,000 USD per annum (2023) with a $4,000 USD deductible for a decent private.

A private healthcare insurance policy in Mexico for a 35 year old would be paying around $1,500 USD (2023) with the same deductible

So with a $4,000 USD deductible you might be wondering how much it would cost to treat a simple injury like a hairline fracture. While a small hospital would charge around $1,500 USD but a high-end large hospital would be closer to $4,000 USD (2023).

Total Costs

Living Costs in Mexico for a Single Expat in 2023
$500 USD	Housing – Mid-Range Apartment
$110 USD	Utilities & Internet Connection
$270 USD	Food and Groceries
$100 USD	Transportation
$170 USD	Health Care (biggest variable)
$250 USD	Entertainment & Miscellaneous
$1,400 USD	Total

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”.

Cost of Living in Mexico as an Expat in 2023