Jump to content
Chapala.com Webboard
AngusMactavish

Lakeside Rental Price's Future?

Recommended Posts

4 hours ago, lakeside7 said:

Respectfully We are not stuck...we all have choices..who forced you into this transaction or location??

You go to a car dealership you look at a Ford  or Mercedes, so which did buy, Maybe a bicycle

This is the reason they keep doing it...nobody is complaining. Look at the law of averages...when was the last time the peso won against the US dollar? They (landlords) just keep smiling and pricing their properties in US dollars and demanding also that YOU pay the conversion fee and hand them pesos!!! Amazing. It makes no difference if it is a beautiful lakefront property such as I live in, or a hovel in the barrio of Chapala.  

Share this post


Link to post
Share on other sites

I live in SAT and I pay in pesos and yes as folks state all my other houses have been in dollars.  I like paying pesos. 

Share this post


Link to post
Share on other sites
9 hours ago, gringohombre said:

For all of you asking: why do landlords require US $ rent vs. Mexican peso rent, the answer is simple: because they can and they do. Most are Mexican who know the history of the dollar vs the peso over many decades if not centuries, so do what is best for themselves. However this has been exacerbated because of the "gringo" (expats worldwide here), who are attracted for all the reasons we know, take this as "the way it is". I was sucked in when I located here 12 years ago, even though I had been travelling and doing business here for 20 years before that. At that time the Dollar/Peso conversion was 10:1. two years later it was 12:1 and as a businessman I thought, why am I paying US$ for a Mexican rental? Would I pay Euros for a rental in California? Would I pay Yens for a rental in Australia? My rental house is a very nice lakefront property in SAT owned by a rich family in Guad. who were (and still are) in a legal battle over many properties they own. I saw the opportunity and demanded that the next lease agreement be in pesos. They resisted but then relented after I threatened to leave. Finally we agreed to a max. 5% annual "inflation" increase. The long shot is that 10 years later I am paying a lower rent than when I started. The bad news for you folks in a Frac. or Gated Community is that you are stuck, unless you can organize a revolt to change things. So, to all you potential renters, please take good advise and demand that the rent be in the currency of the country you will be living. Maybe after this current "event" sinks in and there are many vacancies, landlords will see the light, but only if potential renters put the pressure on them. 

If your landlord was charging $500 dollars ten years ago and never raised the rent you would still be paying $500. 5000 pesos 10 years ago is 10000 pesos today but your inflation clause held the increase to 7500 pesos, so you made out on the inflation clause. 

  • Thanks 1

Share this post


Link to post
Share on other sites
4 minutes ago, crynoutloud said:

If your landlord was charging $500 dollars ten years ago and never raised the rent you would still be paying $500. 5000 pesos 10 years ago is 10000 pesos today but your inflation clause held the increase to 7500 pesos, so you made out on the inflation clause. 

It really doesn't matter what he's being charged or made out on. What matters is his HELPFUL suggestion about trying to pay in pesos, the currency of this country, rather than dollars. Comprende?

  • Haha 1

Share this post


Link to post
Share on other sites
32 minutes ago, happyjillin said:

It really doesn't matter what he's being charged or made out on. What matters is his HELPFUL suggestion about trying to pay in pesos, the currency of this country, rather than dollars. Comprende?

Excally, your satisfied,he's satisfied,we have a deal

  • Like 1

Share this post


Link to post
Share on other sites
2 hours ago, happyjillin said:

It really doesn't matter what he's being charged or made out on. What matters is his HELPFUL suggestion about trying to pay in pesos, the currency of this country, rather than dollars. Comprende?

Hard to understand why any landlord or renter would want to insert a currency risk into the deal. Usually leases are for a year or less. If it is a Mexican landlord it ends up in Peso's anyways. Canadians have to convert to dollars and then peso's. It's silly. Hard to believe that people haggle over ten peso's , but i have caught myself doing it more than once and it is embarrassing.  

  • Like 1

Share this post


Link to post
Share on other sites
10 hours ago, gringohombre said:

This is the reason they keep doing it...nobody is complaining. Look at the law of averages...when was the last time the peso won against the US dollar? They (landlords) just keep smiling and pricing their properties in US dollars and demanding also that YOU pay the conversion fee and hand them pesos!!! Amazing. It makes no difference if it is a beautiful lakefront property such as I live in, or a hovel in the barrio of Chapala.  

Chapala is not a barrio. It is the main town/city with many barrios and the largest  in the municipio where you live. My house that I own being face lifted, is not a hovel[see foto] and all the lakefront properties across the street from me here in the barrio of Lourdes run anywhere from 2 huge to 4+ equally large houses on equally large lots owned by extremely wealthy Mexican families. there are renters on the north shore who rent lake front properties for less than you do in pesos,primarily from Mexican landlords.

IMG_1206.jpg

  • Like 5

Share this post


Link to post
Share on other sites

Hey Pedro...your place looks fantastic!😉

It does seem that some folks downgrade Chapala as "the" place to live, in favor or other locations.....but that's just silly,  There are many very fine homes in and near Chapala.

Share this post


Link to post
Share on other sites

It really does look fantastic. Such small changes can have a HUGE impact. Kudos!!!

Share this post


Link to post
Share on other sites
13 hours ago, ea93105 said:

You can "demand" until you're blue in the face, but if the landlord says no thanks, then what ? You move on until you find one that agrees, pretty simple. Unless there is a law prohibiting rent in dollars its not gonna happen

But there is a law requiring pesos. Not to bore you, but it is actually in the Mexican Constitution. It was put in place the prevent foreign countries from manipulating the Mexican currency. Also, anecdotely, the judge in Chapala almost always takes the side of gringos in rent disputes with Mexican landlords. There are many repeat offenders apparently.

  • Like 1
  • Sad 1

Share this post


Link to post
Share on other sites
1 hour ago, CHILLIN said:

But there is a law requiring pesos. Not to bore you, but it is actually in the Mexican Constitution. It was put in place the prevent foreign countries from manipulating the Mexican currency. Also, anecdotely, the judge in Chapala almost always takes the side of gringos in rent disputes with Mexican landlords. There are many repeat offenders apparently.

We are not arguing the MX constitution...We know and appreciate that the official documents show and RECORD the peso value of the transaction,and  we assume it reflects the dollar value of the property you agreed to. That is one of the the support services offered by your friendly Real Estate company

 As earlier pointed out the transaction could be in chickens, but then just a bit more work for the Notaries to agree the value of a chicken on that particular day of closure

There are other locations in Mexico who primarily attract "foriengns" and work in a similar fashion to Lakeside. Have you noticed Lakeside has a large Foreign community?

Share this post


Link to post
Share on other sites
19 minutes ago, lakeside7 said:

There are other locations in Mexico who primarily attract "foriengns" and work in a similar fashion to Lakeside. Have you noticed Lakeside has a large Foreign community?

Yes, I have noticed, but I do my best to ignore them. As P.T. Barnum said, " there is a sucker born every minute" but very few of them will be of Mexican origin conducting business in Mexico.

  • Haha 1

Share this post


Link to post
Share on other sites
2 hours ago, CHILLIN said:

Yes, I have noticed, but I do my best to ignore them. As P.T. Barnum said, " there is a sucker born every minute" but very few of them will be of Mexican origin conducting business in Mexico.

Uh, you are an expat!  :D 

  • Haha 1

Share this post


Link to post
Share on other sites
3 hours ago, CHILLIN said:

But there is a law requiring pesos. Not to bore you, but it is actually in the Mexican Constitution. It was put in place the prevent foreign countries from manipulating the Mexican currency. Also, anecdotely, the judge in Chapala almost always takes the side of gringos in rent disputes with Mexican landlords. There are many repeat offenders apparently.

Interesting point about the judge(s) in Chapala; though I hope to never need it! We consulted an attorney on our first lease since we knew neither the legal system nor Spanish. He confirmed one always has the legal right to pay in pesos regardless of what the contract says. Of course, that might not be the best way to build a good relationship with the landlord.

Share this post


Link to post
Share on other sites
21 minutes ago, 4fingersfreddy said:

Don't think he'd care as long as it equalled the US value. Only have to exchange it anyway if received in $US, likely lose some on the exchange.

You don ' t fully understand. That if a Mexican landlord offer an unfurnished house, in a safe working class area in Chapala, with secure offstreet parking for $600 U.S. per month, that equates to 14, 421pesos Based on what I know about local markets, a Mexican would know that 6,000 to 8,000 is more in the normal range. So if you rent at the U.S. rate, then many Mexicans have this annoying habit of asking for what you paid for almost anything. When you find out you are paying double the rent than you should be, what is next?

  • Like 1

Share this post


Link to post
Share on other sites

I'll agree rents in this area seem pretty rich.  However, when we were studying the GDL rental market looking for housing for our girls 10,000 pesos was very common for small 2BR 1BA unfurnished apartments in decent neighborhoods.  We finally decided given the years we would be paying rent it was much cheaper to own than rent.

Friend of ours from CA said expats seem to have not helped the market for rentals in Oaxaca either.  Decently located places there approach GDL prices now.

 

  • Like 1

Share this post


Link to post
Share on other sites
Just now, 4fingersfreddy said:

Not following. Please, restate.

Let me slightly  move this rental subject and the alleged gouging you infer because the owner needs to rent in dollars.. and share with you some background and potential risk the property owner is taking

Please pay attention and I will give you an example where the home owner who took the risk of buying a home (for rental or to enjoy him self) and found himself on the losing end  when he had to sell it, for say for ill health.

A few years ago he purchased his property for say $225,000.00 dollars. The legal transaction at that time showed the prevailing  ex rate at 18 pesos to the dollar which = 4,050.000mil pesos

Remember all official documents have to show the peso value

Now in order to move quickly for ill health ( and or the market has softened) the best price he can get for it is $200,000.00 dollars. If the transaction  closed in  the last 30 days the ex rate on average has been 24 pesos to the dollar. So the Notarial does the sum 24 times $200,000.00  equals 4,800.000 pesos. Wow I have made 750,000 pesos

So now not only have I lost $25,000 dollars "real" money, but I show I have made a paper gain that could result in me paying some capital gains to the Mexican Government

So please stop all this bad mouthing about Gringos charging rents in dollars and respect that anyone who decides to take his money from under the mattress and make an investment runs the risk of making a profit and also a loss.

In closing let me ask all your other whiners and complainers  to help me,  as my 401K has lost 15/20% of its  pre pandemic price

Share this post


Link to post
Share on other sites

I'm guessing there are only a handful if any  Mexicans renting from a foreign (mostly nob) landlord.

  • Thanks 1

Share this post


Link to post
Share on other sites

This thread is really off track. I rented in Ajijic for 6 years in 3 different properties and the owners were expats. So why are we talking about the Mexican landlords? By the way none of the  ex pats were landlords who were registered to rent or pay taxes.

 

  • Like 1

Share this post


Link to post
Share on other sites

Maybe that is the way it used to be, now the tax department wants their blood, and foreign scofflaws are easy to find.

Share this post


Link to post
Share on other sites

Hey at least it hasn't been locked yet, not bad for four pages

Share this post


Link to post
Share on other sites
24 minutes ago, CHILLIN said:

Maybe that is the way it used to be, now the tax department wants their blood, and foreign scofflaws are easy to find.

They should go after ALL scofflaws because I can assure you that they come in all nationalities.

Renting in U.S. dollars should not be allowed. Period. This is Mexico. We got burned big time renting in U.S. dollars when the Canadian dollar lost value and that's why I chose to buy a little house. I really don't like getting burned. So, now it is four years later and my little house is more than HALF paid for because I didn't pay rent to anyone... and that's at the rent it WAS four years ago.

Now, I realize that I'm lucky that I could do this BUT you can control your rent by negotiating it in pesos. If a landlord doesn't want to do that... move on. A good landlord recognizes the value of a renter who has good references and will take good care of their property/investment. That's a win/win.

  • Like 6

Share this post


Link to post
Share on other sites

I have been offline here all day because of the CFE replacing poles in our pueblo. Now I am seeing all these posts on this thread and am scratching my head. First this is about RENTALS and why Mexican landlords are putting the lease agreements in US Dollars and mostly requesting the rent be paid on the monthly due date with the conversion rate in pesos, either in cash or transfer pesos to a  Mexican bank account. THIS IS A SCAM!!! I am not a lawyer, and I am sure that maybe this is legal, however as a livelong businessman and after 2 years of falling for this, I forced the change in my lease to pesos and now 10 years later here are the results. My first lease (2008) rent was US$800 for a large beautiful unfurnished house and lakefront property when the peso was at 10:1. two years later it was 12:1 and I started to wonder: why is my lease in US$? To make a long story short, I renegotiated the lease to pesos to include me paying the gardener and also agreeing to an annuel 5% "Inflation" increase. Fast forward 10 years and I just did the arithmetic and at today's conversion rate I am paying about US $50 below what my monthly rate was 12 years ago. So if you want to go forward with with this scam for whatever reason...go for it!!! I am just pointing out reality. 

Share this post


Link to post
Share on other sites
11 hours ago, gringohombre said:

I have been offline here all day because of the CFE replacing poles in our pueblo. Now I am seeing all these posts on this thread and am scratching my head. First this is about RENTALS and why Mexican landlords are putting the lease agreements in US Dollars and mostly requesting the rent be paid on the monthly due date with the conversion rate in pesos, either in cash or transfer pesos to a  Mexican bank account. THIS IS A SCAM!!! I am not a lawyer, and I am sure that maybe this is legal, however as a livelong businessman and after 2 years of falling for this, I forced the change in my lease to pesos and now 10 years later here are the results. My first lease (2008) rent was US$800 for a large beautiful unfurnished house and lakefront property when the peso was at 10:1. two years later it was 12:1 and I started to wonder: why is my lease in US$? To make a long story short, I renegotiated the lease to pesos to include me paying the gardener and also agreeing to an annuel 5% "Inflation" increase. Fast forward 10 years and I just did the arithmetic and at today's conversion rate I am paying about US $50 below what my monthly rate was 12 years ago. So if you want to go forward with with this scam for whatever reason...go for it!!! I am just pointing out reality. 

So gringohombre I think you are saying you negotiated a lease that both you and your land lord are happy with..that is precisely what I keep reiterating, it matters not what you agree to , it can be chickens, an agreement is an agreement...... period. Why are certain folks hung up on this dollar/ pesos...Would they be whining and whingeing if the movement was in favor   of the Pesos???

Share this post


Link to post
Share on other sites
16 minutes ago, lakeside7 said:

So gringohombre I think you are saying you negotiated a lease that both you and your land lord are happy with..that is precisely what I keep reiterating, it matters not what you agree to , it can be chickens, an agreement is an agreement...... period. Why are certain folks hung up on this dollar/ pesos...Would they be whining and whingeing if the movement was in favor   of the Pesos???

We negotiated the details of the lease, not the fact that I forced the change to the obvious correct currency involved, that happend to be in my favor because as  businessman I had done the research. Are car leases at the Guad. airport in US dollars? Do you negotiate buying a used car here in US dollars? Are business rentals here in US dollars? I am not talking legality, just pointing out that this has snowballed into accepted practice here because newbies see it as "the way things are". Would Mexicans accept this in a home rental lease? Please. This board is for trying to help each other here, but some seem to be OK with the perpetuation of this practice and even normalizing it. I am not blaming the landlords, they are looking out for themselves, as should we, the renters. 

 

  • Like 1

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...