The Civil Code for the Federal District is amended to prevent rent increases for residential properties from exceeding the inflation rate reported by the Bank of Mexico. This reform proposes imposing limits on rent increases for residential properties houses and apartments in Mexico City.
Additionally, a third and fourth paragraph were added to Article F to establish a digital registry for lease agreements. For these reasons, this is one of the most significant reforms we have achieved, and it has a very positive, direct, and immediate social impact.
Registration of lease agreements in a rental property registry aims to balance the rights of tenants and landlords. The rental market in Mexico City is informal, and with a large number of lease agreements, it is difficult for authorities to have a clear understanding of how many rented homes exist, who has a lease agreement, the amounts of these agreements, among other relevant aspects.
The operability of the registry is questionable, and the incentives for property owners to register their agreements are unclear. Therefore, it is difficult for parties in an informal market to agree to participate in such a registry. To avoid potential sanctions imposed by the competent authority, it is recommended to register all lease agreements for residential properties in Mexico City in the digital registry of lease agreements within the aforementioned deadlines.
Additionally, it is crucial to comply with the newly established limits on rent increases to meet the objective of narrowing the gap between inflation and rental costs and to prevent any penalties from either tenants or authorities. This article is prepared for the general information of interested persons.
