# renting in Mexico



## marv1 (Apr 14, 2014)

Hi, I'm looking for some advice from those on the ground and in the know!
I've been offered a job at a reputable international school in DF, which includes a rental allowance, however they stated I must stay in accommodation assigned by them and pay to their landlord as "most landlords don't provide tax receipts for rent payments...due to fiscal regulations, the school signs the rental contract as Renter and teachers as Co-renters". 
Is this true, or could I find landlords willing and able to provide the receipts? I would much prefer to find an apartment of my choice in a neighbourhood of my choice, than have all this determined by my employer, for which I'm contractually bound.
Any advice would be much appreciated!!


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## AlanMexicali (Jun 1, 2011)

Many landlords are trying to avoid the new Jan. 1st. 2013 tax law requiring they collect a 16% IVA tax on all rents to be able to get a computerized "factura" from the Hacienda SAT tax service in Mexico paid monthly by the landlord plus their added income tax on each rental property. That property now being documented as an income property will have them not getting any tax break when they sell the property and they will pay capital gains.

The school needs a computer generated SAT "factura" to claim it as an expense or cannot get the deduction for an opertaing expense as any other rent reciept will not be accepted anymore.

The SAT "factura" will need to be in the name of the school, not your name.


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## joaquinx (Jul 3, 2010)

You could forgo the rental allowance and find your own, preferred, apartment.


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## michmex (Jul 15, 2012)

Landlords in Mexico usually require a guarantor or fiador for rentals. This is especially true in Mexico City. Foreign service employees such as yourself often utilize their employer to guarantee the rental payments for the term of the lease. Others utilize o property owning relative or a company that specializes in making these guarantees for a fee.

Given the conditions already stated by the school, it seems unlikely they would easily act as a fiador for you if you declined their housing. I would first take a look at the areas and rentals they already have to see if you like them. Its perhaps more common for a major multi-national company to offer rental assistance without these restrictions. It is likely the school has made long-term arrangements with some rentors knowing that they will have teachers that will need them for 1-3 year periods. 

Commute times can be horrendous here in the D. F. and are usually a major consideration when choosing locations in which to live as are security and access to social/living amenities. Hopefully, the school has taken these into consideration for their lists of housing. It would be in their interest in attracting and retaining teaching staff. Good luck.


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## AlanMexicali (Jun 1, 2011)

AlanMexicali said:


> Many landlords are trying to avoid the new Jan. 1st. 2013 tax law requiring they collect a 16% IVA tax on all rents to be able to get a computerized "factura" from the Hacienda SAT tax service in Mexico paid monthly by the landlord plus their added income tax on each rental property. That property now being documented as an income property will have them not getting any tax break when they sell the property and they will pay capital gains.
> 
> The school needs a computer generated SAT "factura" to claim it as an expense or cannot get the deduction for an opertaing expense as any other rent reciept will not be accepted anymore.
> 
> The SAT "factura" will need to be in the name of the school, not your name.


Correction:

The new 2013 Tax Law came into effect on January 1st. 2014. [...operating not opertaing expense.]


http://www.sat.gob.mx/informacion_fiscal/factura_electronica/Paginas/default.aspx


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## marv1 (Apr 14, 2014)

Thanks all for your contributions, they have been very helpful.
I was going to suggest that I received the rent allowance and I signed the rental contract myself, independently of the school. But the fiador issue could be problematic. I rented apartments in DF years ago without the need for one, but maybe that's not so easy anymore?
I assume there are landlords who would be willing to issue the receipts if I did have the school sign as renter, or are the by-the-books landlords that rare?
It may seem like I'm being overly fussy about this, but I lived in some awful apartments and in some awful neighbourhoods in DF, and don't want to end up in another similar situation. Also, due to a personal interest I would really prefer to be close to a particular neighbourhood.


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## AlanMexicali (Jun 1, 2011)

joaquinx said:


> You could forgo the rental allowance and find your own, preferred, apartment.


I feel the same as you do. 

If it is a hassle you want to create upon arriving without fully understanding the situation the school is in then don´t take the allowance and pay for your own apartment. 

The newly arrived Epats sometimes get themselves off to a bad start by "thinking" too much about things here that are usually, not always though, done for reasons we sometimes find out later on and sometimes never find out the "why" it is done that way and not "our" way.


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## jojo800 (Feb 6, 2015)

marv1, I think we were at the same job fair - I can't figure out how to send you a PM on here, but if you do know how to, send me one, especially if you've accepted! I'll also be working at the school! I'd love to connect.


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## jojo800 (Feb 6, 2015)

I've been told Colonia Roma and Colonia Condesa are popular places to live for teachers at my school. Any input on those locations?


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## Isla Verde (Oct 19, 2011)

jojo800 said:


> I've been told Colonia Roma and Colonia Condesa are popular places to live for teachers at my school. Any input on those locations?


Nice trendy and fairly expensive areas of the city to live in. Lots of young people too.


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## Isla Verde (Oct 19, 2011)

jojo800 said:


> marv1, I think we were at the same job fair - I can't figure out how to send you a PM on here, but if you do know how to, send me one, especially if you've accepted! I'll also be working at the school! I'd love to connect.


Once both of you have made five posts, you can send PM's to each other. Just click on the member's username and a menu will drop down. Then click on "Send a private message to XXXXX" and take it from there.


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