Do they want to raise your rent with the argument of inflation? Here we tell you what you should do

The inflation in Mexico it does not yield and with this the cost of many supplies of the daily life of the people have become more expensive in an important way. In the housing rental segment, there is a lot of confusion about it; However, here we tell you what you should know about how the rise in prices affects the rent of real estate.

We must first know what is meant by the inflation in Mexico. According to the Bank of Mexico definition, inflation is the sustained and generalized increase in the prices of goods and services in an economy over time.

According to figures from the National Institute of Statistics and Geography (Inegi), during the first six months of the year the rate of inflation year-on-year was 8.16%a level not seen for 20 years.

How does this impact the rent?

Different complaints have been expressed on social networks about how tenants are beginning to use the theme of inflation as an argument to raise the amount of rent.

According to Andres Errejon, co-founder of the Wiggot platform, the contracts of rent They are usually valid for one year, so the owner of a property cannot increase the rental price until it expires.

“The current contract must be respected. The rent increase should be at the end of the contract,” said the director of the platform that provides tools for the work of real estate professionals.

According to specialists, the increase that can be stipulated in a new housing lease depends on what is allowed in each city according to current legislation.

For example, in the case of Mexico City, according to the entity’s civil code, article 2448-D, the increase in cost of the rent it’s legal and may be a consequence of demand, surplus value or inflation; however, the increase cannot be greater than 10% over the current amount.

“On the other hand, the Federal Civil Code, article 2448, subsection J, explains that a lessor cannot increase the cost of the rent without reasonand for this you must have a prior agreement with your tenants so that both are favored”, detailed the Inmuebles 24 platform.

For the director of Wiggot, the civil code is a tool that gives certainty to the market of rents in Mexico and also provides the tenant.

“The tenant is protected by the current contract. No change can be made until said contract is finished. After that, the tenant is protected by the civil code,” Errejón declared.

According to the director of Wiggot, in Mexico City, it is stipulated that if the amount of the rent monthly rent does not exceed 150 UMAS (14,433 pesos), the increase may not exceed 10% of the amount agreed as monthly rent.

increases

According to Wiggot, so far this year there has been an increase in housing incomebut not only for the theme of the inflationbut also by the fall of the rents that there was during the pandemic and that with the economic reactivation, prices rebounded.

Depending on the platform, rent national average has registered an increase close to 7%; however, the increase varies according to the region. For example, here are the increases detected by Wiggot:

• Mexico City 5%.
• Guadalajara: 10%
• Beaches and tourist places: 15%.

Source: Wiggot.