In Jalisco, rental increases are regulated to ensure fair limits. Here’s a breakdown of the rules so you can be better prepared.
Legal Limits on Rent Increases
Under Jalisco’s Civil Code (Article 2041), rental limits are tied to the property’s fiscal or commercial value:
- Fiscal Value Basis: If the property’s fiscal value is up to 10,000 times the daily value of the UMA (Unit of Measurement and Update, set at $108.56 in 2024), the annual rent cannot exceed 12% of this fiscal value.
- Commercial Value Basis: If the fiscal value has not been updated in the last three years, rent is capped at 10% of the property’s commercial value.
For example, if a property’s commercial value is 5 million pesos, the monthly rent cannot exceed 41,666 pesos.
Common Lease Adjustments
Most leases include an annual rent increase based on inflation, usually around 4-5%. Be sure to review your lease to understand how adjustments are calculated.
Lease Renewal Rights
At the end of a lease, the landlord may decide whether to renew. However, if you’ve rented the property for three years without late payments, you have the right of first refusal. Enforcing this right may require court action, though.
Practical Tip: Negotiate
In Mexico, there’s a saying: “A bad agreement is better than a good lawsuit.” If you’re happy with your place and the rent feels fair, try negotiating a renewal. Landlords appreciate reliable tenants, and reaching a mutually beneficial agreement can save everyone time and stress.
