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Mexico City, October 18 – The Mexico City Congress has formally initiated the legislative process and an open parliamentary stage to discuss the proposed Fair Rental Relations and Just, Reasonable, and Affordable Rents Law. This initiative, presented by Head of Government Clara Brugada Molina during her Second Government Report, seeks to establish a new regulatory framework for the residential rental market in the capital.
Key Provisions of the Proposed Fair Rent Law
If approved, the Fair Rent Law in Mexico City will significantly alter residential leasing through several key provisions:
- Rent Increase Cap Linked to Inflation: Annual rent increases will be limited to the inflation rate reported by Inegi for the previous year. This restriction will be tied directly to the property, preventing landlords from disproportionately raising costs when changing tenants. Extraordinary increases will only be permitted if the landlord demonstrates substantial property improvements, with prior authorization from the Defender’s Office.
- Digital Registry of Lease Contracts: Managed by the Digital Agency for Public Innovation (ADIP), this will require landlords to register contracts within 30 days of signing.
- Protection and Support Mechanisms: A Defender’s Office for Rental Relations will be created to provide free legal advice and mediation. Additionally, a Social Support Cabinet for Evictions will ensure human rights are respected during judicial proceedings.
Penalties for Non-Compliance
The proposed law includes significant penalties for both landlords and tenants who fail to comply with the new regulations:
For Landlords:
- Exceeding Inflation-Linked Rent Cap: Administrative sanctions ranging from 100 to 400 Measurement and Update Units (UMA), equivalent to $11,731 and $46,924 pesos.
- Failure to Register Contract: Fines equivalent to one to three months’ agreed rent.
- Failure to Provide Tenant with Contract Copy: Fines of 25 to 50 UMA ($2,932.75 to $5,865.50 pesos).
For Tenants:
- Using Property for Non-Residential Purposes Without Permission: Fines of 50 to 100 UMA ($5,865.50 to $11,731 pesos).
- Unauthorized Property Modifications: Fines of 50 to 200 UMA ($5,865.50 to $23,462 pesos).
New Contractual Conditions
The law also introduces new conditions for lease agreements:
- Contracts will have a minimum duration of one year.
- Discrimination against applicants for cohabiting with children or pets is prohibited.
- Landlords cannot charge tenants for intermediation fees, background checks, or legal policy contracting.
The president of the Congressional Board of Directors, Olivia Garza, confirmed the start of a public consultation period of at least ten working days following the publication of the initiatives in the Parliamentary Gazette. This ensures that the dictating commissions will consider public proposals before drafting the bill for a plenary vote. The majority Morena caucus anticipates approving this legislation within the current ordinary session period.
Source: Diario de México
