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Lakeside Rental Price's Future?

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A sword which goes both ways. I have heard of many renters skipping out many months rent from foreign property owners. Maybe there is the feeling that the  foreign owners can do very little about it ( true), there is liitle chance the ex tenant's Mexican credit scores will be changed, and, quite frankly they will get away with it. Now this happens with Mexican renters as well, an ex neighbor rented to Mexicans who in a few short months emptied the rental, including an above ground pool. When I told our Mexican landlord, who hates this neighbor/ family member, she replied " You see, you see, that is why I do not rent to Mexicans! "

Our current landlord, who is prominent lawyer in Guadalajara, issued his standard lease agreement, which required a financial gaurantor who could show clear title ownership to a property. This is very common in Mexico. Luckily, the agent he hired convinced him that this was not done Lakeside. Of course we have never given him any trouble, and always paid the rent on time, even today as Mx. Chillin braves the quarantine to pay the rent at the bank. But it shows how life at Lakeside would be very much different if the rules in the rest of Mexico were in place.

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38 minutes ago, gringohombre said:

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. 

 

It is interesting you mention Guad airport and my mind immediately thought of air line tickets

Would I be correct to say...if you go to your local travel agent and purchase a ticket...whilst it maybe in Pesos  it is pegged to the prevailing ex rate of dollars

So regardless if you are thinking you are renting a "seat" in Peso.... it will vary depending on the day of purchase??

So do you complain to your travel agent if the next day you go to make the purchase and fluctuation of the dollar now means you have to pay more Pesos?

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1 minute ago, lakeside7 said:

It is interesting you mention Guad airport and my mind immediately thought of air line tickets

Would I be correct to say...if you go to your local travel agent and purchase a ticket...whilst it maybe in Pesos  it is pegged to the prevailing ex rate of dollars

So regardless if you are thinking you are renting a "seat" in Peso.... it will vary depending on the day of purchase??

This makes no sense. You are talking about a one time transaction. First, most home rental leases are for a year and you are locked in to each new months conversion rate. Second, why is this acceptable practice anyway, since it only benefits one party and is highly unusual (at least in most parts of the world). Oh, well...to each his/her own. If this OK with you, fine...just pointing out facts and my experience to those considering new or renewing leases here.

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Why on earth would a Mexican airline " peg its prices" in U.S. dollars when its expenses are in pesos. Look it is very simple. If someone is asking for a price in US. dollars, whether it is a house, a rental, or a camel, you politely say I require a price in pesos, and will be shopping around comparing prices in pesos. I told you it was simple!

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Gringo Hombre said, in pertinent part:

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. 

I say "AMEN, Thank heavens for business sense and common sense."

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On 4/27/2020 at 1:08 PM, ea93105 said:

Am I the only one worried SS will be paying out in three years when I'm eligible ? The music may stop  with no chairs left....

All information, including from SSA itself, says that won`t happen until 2035.  Then it will go to a 21% reduction of SSA benefits.  Unless the 68 million who receive SSA monthly checks have something to say about it.

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Thinking you meant member of Facebook. As a  Facebook user, I went to  The Lake Chapala Rentals Facebook page, only to  learn that this is a Private Group meant for members of that group only. When I checked, there were 5,407 members, So I am betting that should you want to go to that page you would only need to request to be a member of that group and I bet you would be accepted.

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On 4/28/2020 at 6:14 PM, 4fingersfreddy said:

General thing: demanding payment in dollores is just greed I think. Landlords knowing full well they will benefit more often than not with rate fluctuation.

Perhaps it is not greed but a owner who paid for the house in dollars and has done his calculations on what it will take to pay Gardener, Hacienda taxes, water, CFE, internet, telephone and still make a 7% return on his investment. Maybe he even calculates his exit strategy and has to apportion that immense chunk of the sale price that the taxman here will take when he sells.

Most of the homes that have locations and amenities that would attract a norteno tennant will be sold in dollars, therefore rented in USD.

Remember that tax is a percent of the sale price not the profit. Even priced in USD it will be difficult to come out ahead as a landlord.  Remember that rents here are quite cheap on a world market. Rents are typically 0.8 to 1.1% of value a month in north America. A house appraised at $250,000 would rent for $2000 to $2750 monthly. I suppose in the future you will be able to complain about houses priced and paid in Bit Coin.

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All homes in Mexico end up being recorded, on the deed, in pesos not U.S. dollars.

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Rental future?  This depends entirely on whether Snowbirds and others will be free to travel to Lakeside when "the season" arrives.  Under current conditions, there will be many unrented places, no matter whether the landlords want dollars or pesos; higher or lower prices.  The old law of supply and demand will rule supreme, as usual.  At this point, there's no way to know what's it's going to be like in six months.

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31 minutes ago, 4fingersfreddy said:

May make it easier to insist on pesos.

Hey 4fingers Freddy, you got it. This is the new normal. Landlords, with their heads stuck in dreamlands from 10 to 20 years ago, getting US rents, paid to U.S. addresses or banks, and no taxes on furnished rentals, should be asked " So you want me to illegally launder money for you to live here? "

Everybody, especially absentee landlords with vacant properties should know this scam too. A slick squatter gets the locksmith to open an abandoned property ( you would be really amazed how many there are Lakeside, up to the million $$$ estate range). Then the squatter advertises the place as a rental, with reduced rent for fixing up and maintenance. The squatter signs a fictional lease to himself, with the rent sent to a US address. The " rent" of course goes right back into the squatter's account. The squatter is now living in the property for free, carries out some maintenance and repair, possibly subleases some other portions of the property, the casita, etc. Eventually, someone shows up the check on the property on behalf of the real owner or the family. Keys don' t work. The squatter answers the door, saying they live there now, giving a copy of the lease to prove it. Owner goes to court, squatter says they are the aggrieved party, a victim of fraud, and they can prove maintenance of the property. As you might imagine, this is now going to drag on for years. Maybe, eventually, the squatter will take a cash payment to vacate the premises.

If you think this is a fairy tale, you are very much mistaken. Happens in Guadalajara all the time. Some criminals make a career out of it.

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On 4/29/2020 at 8:04 PM, 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.

That’s the way it still is.. very few expat landlords are registered, that’s why they want the rent in cash...

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16 hours ago, TelsZ4 said:

That’s the way it still is.. very few expat landlords are registered, that’s why they want the rent in cash...

Now we are going off in an other direction, paying taxes . I would suggest that "WE/ME" (not you) are just following the norm of Mexico life style.... using the gray economy to hide our ill gotten gains from the other thief  and robbers ..the Mexican Local Government , When in Rome do what the Romans do

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Interesting posts.  Did you know you are suppose to pay IVA tax (15%or so) on a furnished house but not on an unfurnished house. 

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Sixteen percent and I'm told you write a separate lease for the furniture and you're good to go.

 

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