So you finally found a great deal - that cozy apartment with the south facing windows, walking distance from the ecobici and near your new favorite taquería. And it turns out your rent is cheaper than other people you know in the same neigborhood. One year of paradise, and now it's time to renew the lease.
Drop the pen! On new leases you need move quickly and offer more give and take, but on a renewal take a moment to regard your power in the relationship before you sign anything.
A renewal is the best time to renegotiate your lease as you hold all of the leverage. Why? You've been paying on time, and you're making money for your landlord. If you leave, things move so slowly in Mexico that the landlord will lose out about two months of rent while they start over. They are often their own worst enemy, adding complex new requirements around what used to be a simple lease agreement - the rental process has gotten longer each year. They tend to forget this and take you for granted, trying to go beyond a rent hike in your lease renwal. We actually caught a landlord who tried to put in a clause that the tenant could be evitcted for "bad behavior!" This is what we call a catch-all clause which could be interpreted any which way the judge decides. Does your lease have one of these traps?
You know you deserve better, but you don't want to move. This is the time to dig in your heels and get yourself a better deal. Don't worry! Landlords do know they can't run you out while you are living there and paying rent on time. If your lease expires because you disagree on the terms, the owner is the one at a legal disadvantage, not you.
The longer you drag out signing a renewal, the more you will get what you want. This is a great way to get repairs done or get your hot water heater replaced that runs out in 30 seconds. Looking at you, Cal-o-Rex (side note: never rent an apartment with one of those boilers, or at least test the hot water first). Sometimes landlords try to get you to sign a few days before or even on the same day the lease is up. Is this sloppy or strategic on their part? It certainly works for pressuring tenants to sign quickly. Never sign on the spot and always use the lease expiration date to your advantage. Don't feel rushed, just because they feel rushed and are projecting that on you. They're rushing because they're vulnerable, not you. If they start chasing you on WhatsApp, stonewall them - tell them that you're checking with your lawyer and it will take a few days. Be vague about timing and don't respond more than once a day. You don't have to hire us or anyone else to use that trick :) Just buy yourself time; each day that passes increases your advantage because you will wear them down.
But your landlord is nice and you don't want to lose your great spot! We often advise our clients to pay the next month's rent after the contract expires because it is a unilateral way to keep you in the apartment legally. If you are living there and paying rent, Mexican law applies an automatic flexible extension of your lease with the same terms you signed for last year in almost all jurisdictions, including Mexico City. Landlords are not used to tenants negotiating in Mexico, so they think they hold all of the cards. Once you play this hand, you increase your leverage further and the landlord will have to concede to some of your wishes - this is a great tactic for wiggling out of the major offenders in your lease or getting repairs done.
Here are some immediate dealbreakers...if your landlord or agent tries to pull one of these and you can't get them to back down, send us your lease and we'll take care of it for you:
- Increasing your rent beyond the legal allowable limit.
- Changing the rules for your Fiador (cosigner), which can put a strain on your presonal relationships.
- Making you responsible for repairs or maintenance, or worse, leaving the language intentionally vague on so it's not clear who is responsible. Then they have all the leverage when it's time to get your deposit back.
- Introducing random new fees.
When you tell your landlord that a lawyer is on your side, they know you have levelled up. We will negotiate for you, so you can keep the relationship positive while we hash out the finer bits with them.