If you own a Mexico Real Estate Rental, you will need to learn how to administer the security deposits.The security deposit is any advance of money, other than a rental application deposit or an advance payment of rent that is intended primarily to secure performance under a lease of a dwelling that has been entered into by a landlord and a tenant. (Texas property code Sec92.102).
In Mexico, there are no limits on how much you can charge for a security deposit. For long-term rentals, many Mexican Landlords charge an amount equal to one month s rent and this amount is standard practice.
MEXICO SECURITY DEPOSIT
The security deposit is held by the Landlord, sometimes in an interest-bearing account, until the Tenant fulfills the obligations of the lease agreement. Some areas of Mexico require that you pay the Tenant the interest earned on the deposit and some areas do not. However, the security deposit does not belong to the Landlord it belongs to the Tenant. I always recommend that the property manager in Mexico hold onto the security deposit in a trust account so that there is no confusion on disbursement of this deposit when the Tenant vacates.
When the Tenant vacates, do an inspection of the property. Some landlords prefer to do this inspection with the Tenant and some prefer to do it without the Tenant present. The choice is yours. To avoid potential disputes, make sure that if you are going to deduct any charges for property damages from the Tenant s security deposit, you take pictures of that damage for future record. Do not deduct for normal wear and tear or if the damage were there prior to move in. You can deduct for unpaid rent, late charges, etc.
Send a full itemized report to the Tenant outlining charges and deductions within 30-days of move out.
If you hire a property manager in Mexico, they will handle all aspects of the security deposit for you. If you choose to manage property yourself, familiarize yourself with the Mexico Real Estate laws for the local region so that you know what can and cannot deduct from a security deposit If you want to learn more tips and tricks on how to rent your Mexico Property feel free to visit more of my articles click here or just call me.
Kami Kemp is both a Texas Realtor and Real Estate Broker in Arizona with Prime Properties. She is a member of the Texas Association of Realtors, the National Association of Realtors and National Association of Residential Property Managers. She began her career in Property Management and Leasing in 1990, has served on various education committees through local associations and has taught many Fair Housing compliance and marketing classes throughout her career. 512-879-6546 www.TOPmexicorealestate.com
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