First a little background on renting homes in Lake Chapala. We should point out that we do not have rental apartment buildings or other properties designated strictly for rental, as we are used to north of the border. Essentially here in the Lake Chapala area, you are usually renting someone's home who wouldn't be using it for a specific period of time; perhaps a snowbird or someone who purchased a property for investment. So, although there are a few 'what we call apartments' in the area, mostly it is homes and some condos. A lot of homes here have 'Owners' Closets' where the owners lock up their valuables when they put their home for rent.
Seasonal Rentals in Lake Chapala
The seasonal nature of rentals creates a somewhat difficult situation. Owners want revenue for as many months as possible (which is understandable) and are reluctant to commit to a seasonal rental very far in advance of the season; i.e., they don’t want to commit to a three-month rental (January February and March) in July just in case someone comes along in September and wants a six-month rental from October to March. On the other hand, the seasonal renter wants to confirm their rental well before the season starts to be assured of getting a good property. This also is very understandable. This is a conundrum for sure!
To back up a little bit, let me explain the combinations of reasons for this problem:
- Most of the properties for rent are houses that people have bought for themselves to live in part of the time, and rent out the balance of the time. Perhaps they aren’t moving here for a year or two. Maybe they are from the southern States and rent it out over the winter months. Maybe they are from Canada and rent it out over the summer months.
- Although there may indeed be a number of listings of rental properties at any one time (even in the high season), when you go and inspect these properties – many of them are either not in an acceptable condition or not in an acceptable location.
You may get lucky and secure a rental early but odds are that most people will not commit until just before the season starts.
When we ask the local Rental/Real Estate Agencies how they deal with this, after a big sigh – this is what they tell us they advise people:
- "Book a hotel or a Bed & Breakfast for a few days when you first arrive. Make contact with an Agent and have them show you what is available at that time."
We have a better recommendation. Come first on a Focus on Mexico Program. Then you will have a chance to see for yourself if this is the place for you. Then when you are ready to come back for an extended stay, you will have a much better understanding and an idea of rentals and values, plus you will have made a number of contacts.
Regarding the cost of rentals in Lake Chapala, there is a big seasonal demand in many areas of Mexico, prices go up and availability goes down from October to April. May to October has more availability and better prices. The best deals are made on long-term rentals (one year or more) as the owner is assured of revenue all year round, and there isn’t as much wear and tear on the property. Many people who come to Lake Chapala every year for six months or more, will take a longer term lease. This way they are assured of a good rental and although they are taking it for 12 months they are paying less rent per month; also they can leave some belongings behind and not have to cart things back and forth every year.
So, bottom line, there is a scarcity of good rental properties in the high season in particular. Because of this, some people who come to check out the area but aren’t ready to move, will buy property as an investment and rent it out until they are ready to come. With the PanAm Games slated for Guadalajara in 2011, this would be a very sound investment idea.
Some things you should know about renting a home in Lake Chapala and Ajijic
- Rental rates vary by season but you’ll find the range is between $650 and $2500 U.S., depending on duration of rental, season, age, condition and location. (Most rentals, like most properties for sale, are priced in U.S. Dollars).
- You need to be very clear on what is included and what is ‘additional.' Quite often a property comes with a gardener. Are his services included in the rate or additional, but required? (The same for the maid.)
- For instance, in the summer of 2004 we took our dogs and our motor home and went traveling for four months. We decided to rent out our house while we were gone. We charged $1,000 U.S. per month rent plus the tenant paid our full-time maid ($400 pesos per week) and gardener ($500 pesos per week), which brought the monthly cost to rent in U.S. dollars up to about $1350 a month. So you can see how you might get a surprise if you are not precise.
- Also, be careful to read the lease. It is quite common here that when you rent a property, you take it ‘as is.’ If something breaks (Fridge, Water Heater, electrical problems, etc.), you are responsible for fixing it. Make sure the lease is very clear on what is included and what you are responsible for. This is one of the reasons many people prefer to deal with a Professional Agency and not rent from an individual, unless they know them.
- It is also normal to pay the first and last months' rent in advance, plus one extra month to cover utilities (especially the phone – many renters in the past have run up huge long distance phone bills and left the owner ‘holding the bag’). When you leave, the Agent or Owner will pay the last month's utility bills and send you what is left over, usually about four to six weeks later, as the phone company here (TELMEX) may take a couple of months to capture all the previous calls.
- A number of Rental properties may also be For Sale. This is not normally a problem for short-term rentals (2 to 3 months), because if it does sell, closing can be timed for after the rental period. It can be inconvenient if the sales market is very active with lots of showings, however. For a longer term rental, in addition to perhaps being interrupted with a number of showings, the risk is the home could sell and they might ask you to leave. So, if the house is up for sale when you sign the lease, make sure there is a clause in there that the terms of your lease are passed on to the new owner and you are protected for the duration of your lease.