What you should do if you have a property for rent or lease in México?

 

By Liliana Elena Gonzalez

@mexatua

If you own property in México and you need to rent it out, I have some suggestions  to help you being protected in case something goes wrong (rentors not paying rent on time, or not paying at all, causing damage to your property or building, fixing anything without your permission, causing problems to neighbors, you name it).

1.- A good rental agreement in Spanish, prepared or reviewed by an attorney. If you are working with a realtor, make sure he/she is a lawyer or has the real estate degree or is using a contract already revised by an attorney.

2.- One month deposit (hold by the owner and refund to rentor at the end of the rental if no damage was done or owe any money)

3.- Fiador signature.- a person who owns local real estate and promise to pay any money owed for the rentor (in case he does not pay). Fiador has to be provided by rentor.

4.-Certificado de libertad de gravamen.- certificate of free liens of Fiador´s property.

5.- Copy of ID´s of rentor and fiador

All this will provide you with the tools and proofs to act in case something goes wrong, but you will still need to hire a trial attorney to start a trial against the rentor.

Also, it will be very convenient to set 2 or 3 inspections during the year, just to make sure everything is in order.

5 Responses to What you should do if you have a property for rent or lease in México?

  1. Jorge Mafud says:

    Hello Liliana,

    Great advice… now, if I may add, at least in Nuevo Leon (I’m not sure in Michoacan) it is also advisable to execute the lease agreement before a notary public. In Nuevo Leon, this gives birth to the lessor’s right to place a lien on the lessee’s property if the rent is not paid in time or ir any other default occurs.

    Thanks and best regards.

    Jorge Mafud
    Mafud Abogados.

    • Liliana Elena Gonzalez says:

      Hello Jorge,

      That sounds very good for owners, doesn´t it? It encourages real estate investments. Unfortunately, we don´t have that in the Michoacan law. We have a summary trial though.

      Interesting comment, thank you!

      Liliana

  2. Rafael Solorzano says:

    10 Lease suggestions for a Lessee

    Before entering a lease, Lessee must do his own due diligence, (this is an absolutely essential condition to protect you), consequentially, I propose the following guidelines, prior to signing a lease:

    1. Make sure you understand the terms of the contract. I strongly suggest that you hire a reputable bilingual attorney at law to review and interpret the contract.

    2. Request proof of ownership from Lessor/landlord.

    3. If you are dealing with a broker or a legal representative of the actual landlord, verify if he has a sufficient power of attorney to enter a lease agreement (The power of attorney must be notarized and recorded).

    4. If the landlord is actually a Lessee under another contract to the same property you aim to rent, make sure to ask for a copy of his current lease and verify if this person is able to sublease the property per the terms of the corresponding agreement.

    5. If the Landlord (Lessor) is currently paying a mortgage on the property subject matter of the lease, make sure that the contract specifies that and that Lessor assume responsibility in the event of eviction; also, include an indemnity clause to make sure that the Lessor reimburses you for any and all damages.

    6. Ask for a tour of the property to be leased and observe any anomalies which require repair, like broken tiles, water damage under sink, tub, pool, leaking roofs, broken windows, damaged door and window screens, weathered paint, air conditioning units requiring maintenance or replacement, refrigerator, electric garage door etc.

    7. When ready to sign the lease make an inventory of the fixings included and their condition, (consider taking photographs) describing its number and include equipment such as air conditioning units, refrigerator, electric garage door, etc.

    8. Include a maintenance schedule to be agreed with Lessor so that if an piece of equipment becomes damaged Lessee is not responsible for repairing or replacing it due to the fact that such equipment was dutifully serviced and it broke or wore down (due to normal use or defect foreign to Lessee) so that the later is not liable for such reason.

    9. Include all maintenance fees such as HOA´s fees.

    10. Include a clause which allows Lessee to exercise an option to renew the lease.

    Regards,

    Rafael Solorzano
    Attorney at Law

  3. Great post. I’ve been looking for this exact information for a while now. Bookmarked!

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