Finding Rentals In Mexico

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Transcript

Justin Keltner: 0:36

If you're planning a move to Mexico or anywhere else for that matter, chances are you're interested in learning more about how to actually find and secure a place to live. We've been getting a lot of questions from our subscribers in the comments and in direct messages about having to figure out all of the little details and the little minutiae around how do I find apartments, How do I find a house? How do I secure and negotiate a lease contract and things of that nature, especially here in Mexico, where a lot of the time getting an apartment or house to rent is not the easiest thing. And it might require things like a co signer, multiple deposits, background checks, all sorts of different things like that. that. So we're going to talk about that in this video and give you the complete guide for how to rent your property in Mexico. Hi, I'm Justin Keltner. And on this channel, entrepreneur expat, we talk about all of the things to do with moving and living overseas, building a remote business so that you can live and work anywhere, as well as all of the different ins and outs and logistics and things that you need to make sure that you figure out before. during and after your move. So if you like our content, make sure to subscribe to this channel so that you don't miss another video. If that's something that you are interested in and also like this video because it helps us a lot with the algorithm and making sure that we can reach as many people as possible. And if you'd like to get even more information about how to move to Mexico step by step, there's going to be a link right below this video where you can download our guide. Moving to Mexico. So, the first thing that people want to know about moving to Mexico is how to actually find affordable rentals. And of course, uh, you want to also get around a lot of the red tape when doing so. Because there's a lot more that you need to do in the process than you might have to in places like the US and Canada. So we're going to cover a lot of that in the video. And we're also going to tell you how we secured a three story house in a safe, nice neighborhood in Mexico for only a thousand US dollars a month. Even less in some cases depending on the exchange rate. So why is Mexico such a popular destination for expats and digital nomads? Well, one of the reasons is there's a very, very affordable cost of living here. Like I just mentioned, we found a three story house for a little under a thousand US dollars in Guadalajara. And, uh, To rent a place just like the one that we have here, it would probably be at least three or 4, 000 in a major city in the U. S. Like LA, New York, or Miami, perhaps even more. We have a lot of space. Uh, my partner and I each have our own offices. Uh, we have solar panels, infrastructure, everything that we need here. And we just would not be able to, Get the same quality of place for nearly the same price where each of us is from. So that's a, that's a reason for sure that's very important. Uh, the other reason that people want to find a place to live in Mexico is because there's a lot of good infrastructure. The internet's very solid here. Uh, there's a lot of direct flights to most major cities in the U. S. The roads are actually quite good. And it also just features a much better quality of life. Weather's amazing here. I personally really love the culture. There's a lot more going on as well with just different aspects of the community. Like we go to a meditation class every week. We actually have one today. Since it's Tuesday, so we go to meditation classes. Uh, there's a lot of like salsa classes that we've been to. There's a lot of events going on. And you can kind of walk, at least in this neighborhood, to pretty much anything that you need. Whether that's a restaurant, a cafe. Um, maybe you need to go and get some, some papers printed out. You don't have a printer at home. You can walk to the papeleria. Uh, so things like that. There's, there's better planning of these neighborhoods here versus in the U. S. And, uh, because you don't have to drive everywhere, things are much more close together. You actually get to meet your neighbors, and you get to build connections with people around you that you normally wouldn't be building anywhere else. Now, in terms of specific places to live, Guadalajara, where we are, where we currently are, is pretty popular with expats. Ajijic is also an expat hotspot that's located right on the shore of Lake Chapala, which is the biggest lake in Mexico, and another city that's really popular, San Miguel de Allende, as well as Playa del Carmen. Of course, Mexico City is also a very popular expat hotspot. So in terms of finding the best location and actually finding a place for rent, you're going to probably go one of two different paths, and those paths will be a little bit distinct based on the city that you choose. So if you're going to go in really popular hotspots for expats, so that might be somewhere along the border, although I'm not really a huge fan of Mexican hotels. Uh, border towns tried that, you know, it was not really my vibe, but if you are somewhere like Tijuana or maybe a little farther south like Rosarito or Ensenada, which are close to San Diego, then they're used to dealing with, uh, expats and just other Americans that maybe come down there and live for a few months out of the year, uh, as well as Canadian snowbirds that, that want to be there for, for several months where, when it's cold, uh, where they're from. Um, so. There's not a ton of red tape, they're not typically going to require like guarantors and things like that as they do in more traditional cities. So if you're in, near the border, if you're in Los Cabos, if you're in Playa del Carmen and a lot of neighborhoods in Mexico City, it's typically easier to rent a property there. But on the downside, you may not be getting the full experience. authentic Mexican experience, and it probably won't be as affordable as well. Uh, for example, in a lot of those beach towns, to get a house like this would probably cost double or even more what we're paying to live in Mexico. Guadalajara. Uh, so those are different things to note, and, and in terms of why you would want to go to maybe one of those places with a lot of expats already there, like a Playa del Carmen, uh, like a, maybe even Tulum or, or Ajijic or something of that nature, is because everybody there pretty much speaks English, and Guadalajara, it's not quite the same. We do need Spanish to get by here, although my partner and I speak Spanish fluently, so that, uh, certainly helps a lot. So, those are kind of just. The pros and cons of different types of cities that you might be looking for when you want to find a rental. Now, in terms of actually going and researching, The market, uh, there are different online platforms, so the best resource that I've seen so far in terms of online platforms, uh, has been like Facebook Marketplace and different groups. So, if you go on Facebook Marketplace, you're gonna find houses for rent, uh, apartments for rent, houses for sale, all sorts of things like that. Uh, it's not as organized as, uh, Facebook Marketplace. Some of the other things might be, but it's definitely a good place to check out because most of the good deals here, you're not really going to find in the traditional places like real estate websites, which is another one of the items here that I'll cover, but you're going to find those deals maybe on Facebook, uh, In those marketplace listings and also in groups. So if you want to find specific groups, you might look for expat groups. So for example, you'll look for expats in Playa del Carmen, expats in Mexico City, what have you. And then there will be other expats and people that are connected to that expat community that are publishing listings that probably are more likely to be easy to work with for foreigners. Um, you can also search for, uh, CDMX Departamentos, which is departments in Spanish, or Renta Casa Departamento. Uh, so like rent house or apartment in the city, but obviously you have to put the Spanish version because we're in Mexico. Another option for sure is local real estate agents. So if you can make friends with someone who is a local real estate agent, and has properties either that they're, uh, helping people rent out or maybe that their colleagues are helping people rent out that are in your budget, uh, then that could definitely be a viable option and you got to make sure that they know that you're not a local here so you're not going to have, uh, what they're doing. They might normally require, which is typically a co signer in that area. We'll get to that a little bit later, but a lot of those real estate agencies in Mexico are going to ask for a co signer with property in the metropolitan area that you're trying to find a place. And that does make it a little complicated for foreigners. So you're going to want to let them know, if you're working with an agent, that that You don't have those kinds of things and what, what can you do? Are they willing to work with you? Now, those are places that a lot of expats commonly go to the groups, the online websites. Uh, there's also websites like, uh, Viva Nuncios, I believe is one. There's, there's a few, if you search for like anything to do with rentals. In Spanish for whatever city there is, you're gonna, you're gonna, you're gonna come across these different MLS like websites. They look like in the U. S. real estate listing websites. Now, the challenge with those kinds of websites and why we don't really recommend them that much is because usually they're Priced very, very high. You're not going to find a ton of good deals on those websites, and typically they do have more stringent requirements, because short of the very touristy areas like Playa del Carmen or Tulum, they're probably going to require the cosigner. They're going to require a lot of other things because those listings are done typically by real estate companies. The very best way to find a property is In your local area is actually to get boots on the ground. So that means actually go to where you want to be living. Uh, maybe just stay a few days or a, a few weeks in the city in an Airbnb and get physically on the ground, rent a scooter, get on a bike, uh, have a, an Uber driver that you hire for a day that maybe just takes you around the entire area and look for for rent clients. signs. It would say something like renta departamento or renta casa. You're going to want to look for those signs on the different apartment buildings. Another thing you can do when you get your boots on the ground is you can go to the porteros or the doorman if you're looking for maybe somewhere in a gated community. or an apartment building and you can have that, that doorman let you know if there are any current listings in that building or maybe even ask them if anybody that they know is renting an apartment in that area. They're typically very connected. Uh, the way that we actually found our tenants. House that we live in currently is the portero that worked in the building that we were temporarily staying in where we had an apartment Actually down the street from here. I asked around and I said, hey, I asked him. Do you know any friends? Do you know anybody in the area? Who is selling? I'm sorry renting A house or apartment and he had a friend that worked in a corner store that's actually the store that we go to every day to to buy our groceries and things like that and That guy who does deliveries in that corner store saw a for rent sign just come up a few days ago And he told us where it was. He took us there. We got the number down We called the the landlady who's now our landlady And that is how we found this amazing deal. So the best deals you're going to get are actually not from all the websites, not from the Facebook groups, not anywhere else, even though you might find a needle in a haystack there. The best deals you're going to get are probably going to be to get your feet actually on the ground. So what that means is if you haven't actually moved to Mexico yet, you may want to plan a trip for two, three weeks. Or a little more and just stay in an Airbnb or stay in a, in a hotel that's in the area that you want to live. And then go to sleep. Spend, even if it's while you're exploring the city, uh, the city, spend a couple hours a day and walk or bike or drive around that area and Certainly, you're going to find some good listings there following that methodology. So when you actually Go and set up these viewings for these different properties. You want to make sure you take a look at different amenities. So, uh, maybe, do they have a security system? Do they have a doorbell? Uh, is there parking if you need parking? You want to, you want to make sure that all the things that you need are included. Uh, one thing as well is there's obviously different kinds of rentals. So, yeah. Do you, do you need a house? Do you need an apartment? Do you want some type of condo? Do you need something in a gated community? And those things are really going to depend on your personal preferences and your lifestyle and everything like that. Obviously the pros of a house, like the one that we got, are that, uh, we have, our dog and our cat here. So there's plenty of room for them to lay out on the patio, lay out, uh, on, on the roof when we're up there with them. Cause we have a nice little terrace upstairs. Uh, there, there's a lot of room for each, uh, to each of us to have an office. We have a nice living space, office room, guest room. There's a lot of, there's a lot of space. Cons might be, well, we probably want to have someone here to watch the house when we're not, when we're not filming. When we're not in town, when we're traveling, because it's not in a, in a, like, secure gated community even though this is a very, very, very safe neighborhood. But there are pros and cons in that aspect, uh, where maybe you really want to have like a, like a security person or a doorman or, uh, someone to receive packages when you're gone. Because sometimes that's an issue. They'll, the Amazon will come and they'll yell and you have to come down and get the package. Um, there's, there's little things like that. So you want to consider. Uh, whether you want to be in a gated community, whether you want a house, if you, it's really important to you, for example, to have more of that, that secure, uh, frontage or with, with the doorman and everything else, well, maybe you'd consider like an apartment or a condo, or you can also look for a house in a gated community. They have a lot of people. gated communities here in Guadalajara. That probably will be like our next move here, um, just for a little bit more security and privacy and everything else. But we found a hidden gem here because it's so quiet, uh, it's kind of nestled in the middle of a block. It's, it's a very, very safe neighborhood. So it really depends a lot on what you're doing. You want to ask around. You want to get a feel for the neighborhood in the day, at night. Uh, how does it feel to walk around there? Does it feel safe? Ask around about what people think about that area and that neighborhood. And, back to the actual tour part. When you are looking at these places, you want to make sure you test things like the water pressure. That is a common thing in Mexico for the water pressure maybe not to be what you would expect, depending on how old the building is, for example. So, you want to take a look at things like that. Test the showers, if you can. Um, the typical water systems here are based on gravity. They don't have, like, city, uh, water pressure that goes all the way up to your house. You have a pump downstairs and that pumps water up to your tank and that tank brings water down to the faucets and showers and everything else. And usually it works well, but you definitely do not want to be stuck with a property where you don't have the kind of water pressure or hot water that you might be expecting. So important to test things like that. Take a look at the outlets, make sure that the lights are functioning. Uh, we had actually quite an adventure here with this house because we rented this house and then found out that there were no ground wires in the house, which is not that uncommon for Mexico. So we invested a little bit of money. our own money and we actually had them run ground for the house so that we wouldn't have any problems with our refrigerator and washing machine and computers and other appliances that needed to be properly grounded. Now, negotiating and securing a lease. So this is a really important topic. First, I want to share a quick story about my experience getting scammed on a rental in Puerto Escondido when I was planning on moving there. Last year because it'll show you exactly what not to do So I'll walk you through step by step and you'll probably be able to see what's what's happening But I was kind of in a rush to get out of this the city. I was bored I thought that I wanted to go and live there Next to the beach and whatever and and it turns out that wasn't really what I what I wanted and the universe had something else in store And that's why we ended up staying in Guadalajara But I was checking out places in Puerto Escondido, which is in the state of Oaxaca. It's right along the coast there And, looking in different Facebooks, I saw a house that looked very, very nice. I wasn't familiar with the area at all because, uh, if I was, then it would have been obvious that that house at that price was way too good to be true. But I saw that first red flag that I didn't really notice because I really wanted to, to move there was, it wasn't even the person that was going to be renting the house posting. It was like his mother, uh, And she said, oh yeah, like, uh, it's my son's house and he's renting it out and blah, blah, blah. So I talked to the guy on the phone. Seemed like a reasonable person, whatever. He said, this is what we're doing. Um, I really should have gone there to visit first, but somehow, uh, he said, okay, we'll reserve it for you. We don't need a deposit. Another red flag, because usually they are going to ask for at least one or two months of deposit. And I sent him the money through a transferencia, a bank to bank transfer, uh, which is pretty common in Mexico. Like, that wasn't, in and of itself, a big deal. Super, super out there, but I sent him the money, and, uh, then, you know, still communicating with him, whatever. And then of course all of a sudden it goes dark, and I can never get a hold of the guy again. And basically he ran off with over a thousand dollars of rent. Uh, and apparently a lot of other people in that group had been scammed by exactly the same person. The place never actually existed, or it existed, but it was somebody else's house. And, uh, essentially I was just Out of luck because there's nothing I could do to get the money back. Once you send a transferencia in Mexico, it's sent. So what you want to do to not get scammed is don't rely on Facebook groups because those are how a lot of people get scammed, especially people that are in like touristy areas and aren't familiar with the area. Maybe aren't going to be in town yet to view the place. This is why you want to have boots on the ground first and never send money or sign a lease or anything like that. Unless you're actually in the house, looking at it, and you can verify that that is in fact the house that that person owns that they're trying to rent to you. Now, you can go super extreme with this, right? But, for the most part, if you're there, and the person is physically showing you the house, you can be relatively certain that that is the house that you're going to get. Because the people that are trying to scam you online, are are not going to very often meet up with you in person because they know that if they were to expose themselves to that, it's very easy to do like a sting operation and basically end up arrested because they are now, you know, exposing themselves to, uh, the police or whoever else might, might try to, might try to catch them. So if you're meeting the person there in person in that house, that's usually a fairly good sign. Uh, if you really want to ask for more verification or something. You know, just you could say something subtly like, Oh, do you, do you have the, you know, the recibo de luz? Like maybe the, the electric receipt. Can I just see that before, you know, signing anything? I just want to have an idea of what the electricity runs in this place on a month to month basis. And like, that's a such a reasonable request that they should have no problem showing you that. If they are like, refusing that for whatever reason, might be a red flag. So maybe get some other validation that that is in fact, uh, a place that is legit. And that they can, in fact, uh, Um, other notes about negotiating and securing a lease. Like I mentioned earlier in this video, one of the things that's very common in a lot of cities in Mexico outside of the super touristy regions is they're going to ask you for something called an aval. And what an aval means is essentially a cosigner that has property in the area where you're going to be renting that home. And they're, they're essentially. Signing with their property is collateral that if anything happens to the house that you're renting if you default on your lease if you don't Pay a month whatever it is that they can now go after that person and their property in order to collect that damage or to collect that lost rent. So just be aware of that. Obviously, as an expat, you're not going to have someone that's in that city with property that's going to be willing to go in and cosign, um, on your lease for you. So there's another option, and not every owner or realistic company is going to be willing to do this, but there's another Option called an alternative contract, or in Spanish, it's called a contrato de justicia alternativa. Like an alternative justice contract. It's very difficult to evict tenants in Mexico, so they don't want to sign a normal rental agreement with you if you don't have that type of cosigner. So that's why you can find the option to do an alternative contract, and usually you're going to pay anywhere between one to two hundred dollars for that. They're going to ask you for income statements, bank, uh, statements. They're going to ask you typically for any information related to your credit in that country. So they're going to do like a full inspection to see if you have any criminal records, to see if you have any, any outstanding debts based on your name in the system and things like that. And that usually takes a week or two to process depending on the, the company that they have doing that alternative contract for them. And usually either you as the tenant will pay that cost or you'll split it with the landlord. And when you do one of those alternative contracts, what I've seen in my experience has been typically you're going to have to leave a deposit of one month, uh, plus an extra month, plus the Current month, so basically similar to first, last, and deposit. So you'll, you're going to need three times whatever that monthly rental is as your move in costs. So that's just something to be aware of. So, uh, in this case, with this place, it was 1, 000. We needed to give that landlady 3, 000 to move in and take possession of the property. One little caveat to be aware of when you're renting a place in Mexico is that tenants rights and obligations in this country are very different from those in the U. S. and Canada. Case in point, we needed things fixed electrically in this house and the owner didn't think it was something that would necessarily add value to her property and in part it was, I guess you could argue, because of our our own desires or comfort, realistically it was a safety thing and it was a I don't want my computers exploding because they're not grounded, and because the breakers are wired literally backwards. And so, I told her about it, but she wasn't going to do anything about it, so essentially we fronted most of that cost to do it ourselves, because we knew we would be here for a long period of time, and now we're going on the second year in this house, so it's been worth it in that sense. But, there were other things, like plumbing, for example. Sometimes she fixed it. Sometimes we had to pay for it ourselves. So, you want to basically be aware, and this is another reason I say, hey, test the faucets, test the doors, make sure everything's in working order, because unless that person agrees, Up front before signing a lease with you that okay. Yeah, you know, we're gonna paint this wall So that it's clean or whatever before you move in we'll fix this door for you Because you notice it and you mention it now don't be a Karen about it and you want to also hold your uh Western like entitlement in check That was something that I I definitely struggled with a little bit myself and saying Oh like this isn't up to the standard in the standard and this definitely isn't wired to code and whatever You Just because you don't think that something should be a certain way doesn't mean that the landlord really cares about that thing or that they want to invest money in their property to fix it. So if it's something really obvious like, hey, the bedroom door doesn't lock, I'm sure they'd be happy to fix that, but you would be best to check it before you move in and have them agree to that. Uh, before signing a lease, I wouldn't go super, super overboard and talk about every single thing that is broken with the house, because then they're probably going to refuse to rent it to you. That's just kind of how it works here. But if there's a couple of little things like, Hey, we want to make sure this thing in the door is secure or whatever it is, you can kindly do that. Uh, ask about that and see if they'd be willing to take care of it for you, but realize that if, you know, there's something in a, in a, in a toilet that breaks, if it's like really because the thing is old and it hasn't been maintained, maybe they'll fix it, but even things like a water heater, I've heard that it's very common in Mexico that for the first year or so, the landlord will take responsibility for something like a water heater, maybe that that breaks or that it's old so that they have to replace it, but then after six months to a year, It becomes your responsibility. So whatever you're paying in rent, what I would do just to be on the safe side is add about 10 percent of that. Just put it away in the bank because you may have to replace, uh, a knob on the faucet or, uh, a wire or a light fixture or something like that, because those things normally do fall in the responsibility of the tenant here. Totally different contracts, just a different way that real estate works. So, uh, the next thing. is moving in. What do you actually do when you take possession of the place? You've found a perfect place, you've signed a contract, you've gotten everything out of the way, put down the deposit, got your keys. So first thing you want to be aware of is utilities and services. Now, unless you're renting a fully serviced apartment or house, uh, or you're, you're paying something that is basically like an Airbnb where everything comes included, most of the time the electricity Water and gas are separate. The way gas works here in most areas in Mexico is you have a Tank on your roof. That's a mid sized tank Propane gas tank and every month or two, you'll call the gas company when it's empty and they'll actually come and refill that tank with new gas. And you'll have gas for your water heater, you'll have gas for cooking and anything else that depends on it. Then your electricity. That typically will stay in the name of the landlord, you'll get the receipt just at your front door or in your electric meter and then you'll go to the bank or you'll make a transfer with your local Mexican bank account and you'll pay for that bill yourself and then water, same kind of thing. Some of these utilities, they do have the ability. to set up an auto pay, but in almost all cases, you will need a Mexican bank account to be able to do that. Now, the last thing is internet, and this is something that very seldom is included in apartment or house rentals internet. There are many providers, depending on what city you're in here in Guadalajara. We have Megacable, Telcel, uh, Totalplay, EZ, there's like three or four more, but those are kind of the major players, and they vary slightly depending on where you are in the country. Internet may take a while to get set up. It's not as efficient here as it is in the U. S. and Canada where you can get somebody the next day or in the next two or three days. I would, just to be very, very safe, budget for at least two to three weeks to have your internet and everything else. Um, so what you can do in the meantime is either get a dedicated hotspot or just get a SIM card for your cell phone that you can use for tethering so that you're not without connectivity, especially if you're going to be working remotely from home. Mexico. We actually have two different internets. The reason being, we do a lot of video work, a lot of media interviews were doing a ton of recording and uploading and downloading things. So the internet is very fairly reliable here. In fact, we have fiber optic internet on both of the packages that we pay for. One is through mega cobbler. One is through total play, but they do have a tendency to go down occasionally. And so it's better that even if it's only an hour or two of outage, every week, we'd much prefer to have a backup. And we have a system that I built that actually switches the internet from one to the other if there's an outage. I'd recommend that you have two if possible, a main internet and a backup that doesn't have to be as fast, uh, at the very least so that if one goes down or you're experiencing a lot of intermittent issues that you can just switch to the other wifi. And that way you're not going to drop your calls or be without service. One of the things that we also get asked about a lot that's going to be coming in a video really soon is how to connect with your local community now that you've established yourself and gotten a place here. We're going to talk about that more very soon, but the basics of it are Facebook groups. There's a lot of expat groups like I mentioned earlier and a lot of different events. Uh, salsa classes are great to go to, other classes that are of your interest that Maybe don't even require as much talking if you're still working on getting fluent in Spanish. So there's things like that in your local community and Facebook and even Meetup are great ways to to go and find that. Airbnb as well has some different events and things like that. Meetup isn't as big here in Mexico as it is in other places. So Facebook is where most of those things are at. So you can check out events on Facebook, you can check out groups and things like that to help you find So that was the comprehensive guide on how to find and rent your first or next home or apartment in Mexico. Hope you enjoyed this video. Make sure to like and subscribe for more. And definitely check out our full guide on moving to Mexico below in the description. See you again soon.