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rent increases with inflation


Earl
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Home owners who rent out their homes are entitled to the annual official cost of living increase to be added to the amount they get for rent.  (6.6% for 2017).  Does this increase start with the new lease term or January 1.  That is, if your lease does not renew until May, do you have to start paying the new amount as of Jan 1 or May 1?

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  • 3 weeks later...
4 hours ago, Mainecoons said:

I believe if your lease states a rent and has no provision for interim increases you can only increase the rent upon lease renewal or a new lease.

 

Exactly and they must be registered with SAT, provide official receipts and appropriate authorization / visa status with INM. Until then as a tenant I would not pay rent. :-)  And if landlord is not residing in Mexico the tenant withholds the appropriate taxes and pays them.

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I think there's a saying about winning the battle and losing the war. Not paying one's rent and relying on the Mexican judicial system to protect you might, just might, be detrimental to one's health. Let your conscience be your guide (and make sure your health insurance is up to date).

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http://www.inflation.eu/inflation-rates/mexico/historic-inflation/cpi-inflation-mexico-2017.aspx

If the official inflation rate is 6.04% for 2017 then when rewritng a new lease in whatever month of 2018 you can only raise the rent for a year 6.04% and only if the renter agrees. If not then negotiate a rent increase if you want the renter to stay. If you don´t care if the renter stays then you can charge a new renter whatever you want. My wife thinks this is what it is. For many years the official inflation rate was around 3%.

https://www.globalpropertyguide.com/Latin-America/Mexico/Landlord-and-Tenant

"Rents must be determined in Mexican currency (pesos). The parties may freely agree the terms for rent increases, based either on increases on the consumer price index, or on other parameters."

 

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On 2/6/2018 at 7:55 AM, Earl said:

Home owners who rent out their homes are entitled to the annual official cost of living increase to be added to the amount they get for rent.

1

This is worded to suggest that such an automatic increase is a statutory requirement. It is not.

I just renewed my lease after one year of tenancy. I agreed to a 4.76% increase, but the new term is for three years. If such a law exists, why would the landlord settle for so much less? Hint: No such law, rule, or custom exists. 

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