A Deep Dive into Mexican Rental Guarantees
For landlords and tenants in Mexico City, the decision between a traditional Fiador (Guarantor) and a modern Póliza Jurídica (Rental Legal Insurance) is a complex calculation of risk, time, and cost. Unfortunately landlords now often require both (truly wearing suspenders and a belt). While both are designed to protect the landlord from tenant default, they offer fundamentally different types of protection, with massive implications for legal enforcement and financial exposure.
The Traditional Fiador: Asset Collateral, Slow Recovery
The Fiador is a person who signs the rental contract and owns unencumbered property within the state. This person provides asset collateral: their property can legally be seized to cover outstanding rent and damages if the tenant defaults. This provides the highest theoretical protection for the landlord.
However, the legal protection is often slow in practice. The official eviction process, known as the Juicio de Desahucio (Action for unlawful detainer), is a complex judicial procedure that can take, on average, one to two years to complete. This means the landlord faces two years of lost income and accumulating legal fees before the Fiador's collateral can even begin to be legally leveraged. The high time and cost burden make this asset-based protection slow and often impractical.
The Modern Póliza Jurídica: Procedural Defense and Expediency
The Póliza Jurídica (Legal Policy) is a service provided by your landlord's law firm that focuses on procedural security. The firm investigates the tenant and, critically, guarantees legal representation for the landlord should an eviction procedure become necessary.
Risk Mitigation vs. Asset Transfer: The landlord may not receive 100% of the lost rent, but the firm guarantees they will pay the legal costs and streamline the Juicio de Desahucio. Given the 1–2 year eviction timeline , many sophisticated landlords prioritize mitigating the cost and duration of the lawsuit, making the Póliza Jurídica a preferred choice for reliable, fast-acting risk management.
Conclusion: For international clients who cannot secure a local Fiador, a specialized Aval or Póliza Jurídica is often the only viable path. If your landlord requires a Póliza Jurídica they will tell you. We offer Aval Services for Foreigners to help you move in quickly.