# What to consider when looking to rent a house



## pm16 (Mar 9, 2016)

Hello:

We are moving to Mexico and are researching renting a home or bungalow with outdoor space like a garden.

1. How is rent paid - month to month or a block amount for a set amount of time, i.e. 6 months rent?

2. Any recommendations on renting in Tepoztlan long term?

3. Documents needed when renting

4. We have pets. What is the rental market like for pet owners?

5. Are rentals houses generally furnished or unfurnished? What is the typical price difference?

Thanks,
Julia


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## chuck846 (Jan 15, 2016)

pm16 said:


> Hello:
> 
> We are moving to Mexico and are researching renting a home or bungalow with outdoor space like a garden.
> 
> ...


We actually live not very far from Tepoztlan. We rented the first year we were here because we couldn't find something we REALLY liked to buy. We paid (I believe) 17,000 pesos/month (after taking a discount for a 1 year lease). We have 4 cats and the US based (Mexican) landlord had no issues with that. The house we rented was un-furnished. In fact although a nice house in a nice neighborhood (24X7 security) - there were no light fixtures. We had to walk around with flashlights for a few days. I suspect Teopoztlan is even a little more 'rural'. We did look at one or two houses out there but it was just a tad too remote for us. There is a yahoo group called CUERNADS that you should have a look at. Often people post ads for rentals/sales. Or you could contact one of the 'several' large US-like real-estate firms that service the area.


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## Waller52 (Jun 17, 2015)

pm16 said:


> Hello:
> 
> We are moving to Mexico and are researching renting a home or bungalow with outdoor space like a garden.
> 
> 1. How is rent paid - month to month or a block amount for a set amount of time, i.e. 6 months rent?


Never pay more than one month in advance. Not every rental will require a security deposit either.



> 3. Documents needed when renting


Should be reviewed by a Mexican attorney



> 4. We have pets. What is the rental market like for pet owners?


From what I see, pets are much, much less an issue as they are in the US.



> 5. Are rentals houses generally furnished or unfurnished? What is the typical price difference?
> 
> Thanks,
> Julia


Numerous rentals including partially furnished and the prices vary. Get "boots on ground", do your homework, ask around, don't be afraid to negotiate, get a local who knows Spanish to assist you, don't get hung with paying_ ******_ prices. :eyebrows:


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## chuck846 (Jan 15, 2016)

Here is a link to the Century 21 website that would service Teopoztlan.

http://www.century21dcosta.com/si/busca.php?promocion[]=Renta&tipo[]=01&tipo[]=02&tipo[]=13&idioma=ing

Although it covers the Cuernavaca area as well - you can see that you can pay as much as 80,000 pesos/month. The area will only become MORE expensive what with the super-highway going in between Cuernavaca and Mexico City.


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## Waller52 (Jun 17, 2015)

chuck846 said:


> Here is a link to the Century 21 website that would service Teopoztlan.
> 
> Century 21 D Costa - Bienes Raíces en Cuernavaca[]=Renta&tipo[]=01&tipo[]=02&tipo[]=13&idioma=ing
> 
> Although it covers the Cuernavaca area as well - you can see that you can pay as much as 80,000 pesos/month. The area will only become MORE expensive what with the super-highway going in between Cuernavaca and Mexico City.


Greater access = greater demand?


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## chuck846 (Jan 15, 2016)

Waller52 said:


> Greater access = greater demand?


Of the 30-40 neighbors we have today, many commute daily to Mexico City. If there is an accident on today's highway it can ruin your day. They are expanding today's highway to something that will rival ANY US interstate highway. I think it will go all the way to Acapulco. With any luck - the work will be completed just about the time we are ready to move into a box on the ocean and it will be easier to sell our house.


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## Waller52 (Jun 17, 2015)

chuck846 said:


> Here is a link to the Century 21 website that would service Teopoztlan.
> 
> Century 21 D Costa - Bienes Raíces en Cuernavaca[]=Renta&tipo[]=01&tipo[]=02&tipo[]=13&idioma=ing


Expensive, the cheapest is $23,000MX/mo and the rollover conversions are way off. $23,000Mx = $1,692US, not in today's peso-$$$ exchange. more like $1,250US or so, yes?


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## chuck846 (Jan 15, 2016)

Waller52 said:


> Expensive, the cheapest is $23,000MX/mo and the rollover conversions are way off. $23,000Mx = $1,692US, not in today's peso-$$$ exchange. more like $1,250US or so, yes?


It is a little misleading. Teopoztlan really is a bit out of the way. You are going to want to seriously plan your trips into Cuernavaca - unless you own a Pemex station. Perhaps they are doing a bit of a service by not updating the exchange rate. After all - you still have to get your dollars down here and converted to pesos (there is a cost). I think the last time I looked - the place we rented for 17,000/month was now going for 25,000/month. Don't let anyone tell you there isn't inflation in Mexico.


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## Waller52 (Jun 17, 2015)

chuck846 said:


> It is a little misleading. Teopoztlan really is a bit out of the way. You are going to want to seriously plan your trips into Cuernavaca - unless you own a Pemex station. Perhaps they are doing a bit of a service by not updating the exchange rate. After all - you still have to get your dollars down here and converted to pesos (there is a cost). I think the last time I looked - the place we rented for 17,000/month was now going for 25,000/month. Don't let anyone tell you there isn't inflation in Mexico.


The supply-demand equation is universal. What size home (BR, baths etc) did you get for $17Kmx?


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## ojosazules11 (Nov 3, 2013)

We have a small house in Tepoztlan (but currently we are still based in Toronto), so I haven't seriously looked at the rental market. But some friends (Mexican) recently moved into a nice 2 bedroom house with a garden for MXN$5000 per month. Their house also has easy access to the highway to Mexico City. They have 2 young children and a dog. I think you can find something way cheaper than $17,000 per month, but it depends on your needs/wants and degree of luxury and perks. Of course if your budget can manage it, there are some amazingly beautiful houses with lots of extras (gardens, swimming pools) in Tepoz and it's a lovely, interesting town.


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## AlanMexicali (Jun 1, 2011)

pm16 said:


> Hello:
> 
> We are moving to Mexico and are researching renting a home or bungalow with outdoor space like a garden.
> 
> ...


Check closely the electric consumption from the previous tenant to make sure you will not be paying the CFE DAC rate for months because of their over comsumption and not allowing you to be within the heavily subsidized rates when moving in. It can be hundreds of dollars more per month and not your fault. Put CFE DAC into the above search box and read what it is all about, if you want.


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## ojosazules11 (Nov 3, 2013)

Another consideration in Tepoztlan is that many (most) properties are still under the _comunero_ (ejidal) system. Under this system if someone lives in a house long-term, e.g. 5 yrs, even as a rental, they can potentially claim ownership rights to the property. For this reason, many landlords can be reluctant to rent long-term (several years continuously) to avoid any such claims. However, renting to foreigners carries much less risk in this aspect, so often there can be a preference to rent to foreigners.

I second Chuck's suggestion to join the local Cuernavaca Yahoo group, Cuernads. Many participants are from Tepoztlan and I've certainly seen postings about rentals available in Tepoz. You can also post that you are seeking a house to rent. You can also get a feel for some of the cultural and social activities available, as these are often announced on the board.

Many people live in Tepoztlan and work in Mexico City, so it's certainly do-able.


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## AlanMexicali (Jun 1, 2011)

ojosazules11 said:


> Another consideration in Tepoztlan is that many (most) properties are still under the _comunero_ (ejidal) system. Under this system if someone lives in a house long-term, e.g. 5 yrs, even as a rental, they can potentially claim ownership rights to the property. For this reason, many landlords can be reluctant to rent long-term (several years continuously) to avoid any such claims. .


That squatters right law is not only for ejido lands but a general law. If an owner has proof of paid rent by any renter as in a yearly signed legal lease, copies of rent reciepts signed by the renter anyone claiming squatters rights is out of luck. Many people rent their houses, land , ranches etc. for decades to one person without any problems if done properly. Letting anyone live free in a property is plain stupid even a relative or friend without any legal documents to prove it was rented to them even if it is a few pesos per month. I read more about abandoned properties being taken over by squatters and improving the property, building structures, paying the property taxes, CFE and water bills, farming it etc. and the owners not knowing or not bothering to evict them where they lose the property to that law, not ejido leases or property in general and in those cases after 2 years the squatters can file for ownership if I remember correctly.


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## coondawg (May 1, 2014)

AlanMexicali said:


> That squatters right law is not only for ejido lands but a general law. If an owner has proof of paid rent by any renter as in a yearly signed legal lease, copies of rent reciepts signed by the renter anyone claiming squatters rights is out of luck. Many people rent their houses, land , ranches etc. for decades to one person without any problems if done properly. Letting anyone live free in a property is plain stupid even a relative or friend without any legal documents to prove it was rented to them even if it is a few pesos per month. I read more about abandoned properties being taken over by squatters and improving the property, building structures, paying the property taxes, CFE and water bills, farming it etc. and the owners not knowing or not bothering to evict them where they lose the property to that law, not ejido leases or property in general and in those cases after 2 years the squatters can file for ownership if I remember correctly.


Wow ! My father -in-law has a house that he has let a son use to live for 6 years and has told the son how much he will sell it to him for. As yet, the son has not "bought the property", nor paid anything. But, he pays the taxes, water, lights, has made improvements, and probably now has the deed in his name. That is why he has not made any payments, nor arrangements. Wow!


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## sparks (Jun 17, 2007)

> 3. Documents needed when renting
> Should be reviewed by a Mexican attorney


I didn't understand that at all. If you mean the contract ..... most landlords go to the local papeleria for their pre-done contracts 

Documents to rent .... probably Passport and Visa


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## sparks (Jun 17, 2007)

AlanMexicali said:


> Check closely the electric consumption from the previous tenant to make sure you will not be paying the CFE DAC rate for months because of their over consumption and not allowing you to be within the heavily subsidized rates when moving in. It can be hundreds of dollars more per month and not your fault. Put CFE DAC into the above search box and read what it is all about, if you want.


Definitely if you can. We moved into a place and soon after received the last 2 months bill for 6000 pesos. The ****** jerk before us ran two old window air conditioners 24/7. Luckily we had an understanding landlord and another place came available. That place needed to sit vacant for at least 6 months to get off the DAC


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## ojosazules11 (Nov 3, 2013)

AlanMexicali said:


> That squatters right law is not only for ejido lands but a general law. If an owner has proof of paid rent by any renter as in a yearly signed legal lease, copies of rent reciepts signed by the renter anyone claiming squatters rights is out of luck. Many people rent their houses, land , ranches etc. for decades to one person without any problems if done properly. Letting anyone live free in a property is plain stupid even a relative or friend without any legal documents to prove it was rented to them even if it is a few pesos per month. I read more about abandoned properties being taken over by squatters and improving the property, building structures, paying the property taxes, CFE and water bills, farming it etc. and the owners not knowing or not bothering to evict them where they lose the property to that law, not ejido leases or property in general and in those cases after 2 years the squatters can file for ownership if I remember correctly.


Thanks for this info, Alan. Since most properties in Tepoz are still under the ejido system, when I heard of a couple of cases where people acquired ownership of the property just on the merit of having lived there for several years, I thought it was another quirk of the ejidal system. I didn't know it applied to all properties. 

I've known people in Mexico (Mexicans) who are renters and essentially had to move every 1-2 years as landlords were reluctant to rent beyond that. Probably the landlords are aware of cases where this has happened and don't want the risk or hassle if someone tries to invoke squatters rights. It's good to know that as long as there are receipts for rent paid, this provision cannot be invoked. 

Another thing I have heard is the importance of the owner paying the "Predial" (property tax) directly to make sure that it is in their name, since if someone else starts paying it in their own name, they might be able to make a claim on the property in the future. We don't take any chances with our property. In fact, my husband prefers I pay the predial in my name (the property is registered in both our names). Since I'm a foreigner, he feels it makes things that much more secure for me if anything were to happen to him.

We did let a niece and her family live free in our house for about 9 months one year. She knew it was temporary and there were mutual benefits in this arrangement. However the next year she wanted to do it again, and we thought it was best not to, for various reasons including the above (and she kept getting into fights with our neighbours, with whom we have a good relationship and want to keep it that way!)


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## chuck846 (Jan 15, 2016)

I suspect everyone who rents/owns in Mexico should be aware of how DAC works and what zone they are in. We rented and now own in the least tolerant zone (I believe Zone 1). When we rented, the house had sat empty for perhaps a year before our renting and we had a long runway to build up to the critical moment. But when we moved out we were about to enter DAC - and that was with no A/C. Same thing when we bought. We saw where we were headed and put in panels.

When we rented the owner kept all the utilities in his name - which was a problem at one point because even though we paid his account - he failed to pay CFE and they shut off the power for a day or two. But - perhaps that is one more defense an owner has in fighting squatters.


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