Mexico: Current Overview of Short-Term Rental Regulation

The real estate market in Mexico has undergone substantial changes in recent months regarding applicable regulations, particularly in the area of short-term rentals. Recent regulations aim to balance the growing demand for short-term rentals with the need to protect tenants, property owners, and local communities. While some states have implemented significant changes, as is the case in Mexico City, others are still in the process of adapting.

Short-Term Rental Regulation in Mexico City

Since the year 2024, the Government of Mexico City has amended various legal provisions to regulate short-term rentals, especially through digital platforms such as Airbnb.

In April 2024, through an amendment to the Tourism Law of Mexico City, the government of this entity created the Host Registry, a mandatory registry for all individuals or legal entities offering short-term rental services. Additionally, the Technology Platform Registry was established to register individuals or legal entities, whether Mexican or foreign, authorized to operate, intermediate, and/or manage a technology platform in Mexico City through which such services are offered.

Some of the most relevant obligations imposed on hosts include:

• Registering in the Host Registry;
• Enrolling their properties; and
• Submitting a semiannual report to the Ministry of Tourism on the occupancy of their properties.

Likewise, some of the most relevant obligations imposed on technology platforms include:

• Registering in the Technology Platform Registry;
• Requesting from hosts the registration certificate and folio number issued by the Ministry of Tourism upon enrollment in the Host Registry;
• Displaying the registration certificate and folio number on each listing within the platform; and
• Submitting a semiannual occupancy report to the Ministry of Tourism detailing the usage of listed properties.

The registration in the Host Registry is valid for 1 year and must be renewed within 30 calendar days of its expiration.

As part of the efforts to regulate this new rental model, in October 2024, the Government of Mexico City amended several provisions of the Mexico City Tourism Law, the Housing Law for Mexico City, and the Law for the Integral Reconstruction of Mexico City to limit the annual occupancy of properties intended for short-term rental.

Under these amendments, properties listed on the Host Registry cannot be occupied for more than 50% of the year, whether consecutively or non-consecutively. Moreover, as previously stated, hosts are obliged to submit a biannual report to the Ministry of Tourism detailing the occupancy status of their properties. If this occupancy limit is exceeded, the registration in the Host Registry will not be renewed and the property will only become eligible for re-registration one year after the denial.

Furthermore, said amendments prohibit the use of properties under social housing, affordable housing, or reconstruction programs for short-term rentals.

Short-Term Rental Regulation in Baja California Sur

Due to the growth of tourism and visitors' preference for renting properties instead of staying in hotels, in 2018, the state of Baja California Sur incorporated Chapter VI Bis into its Civil Code, which regulates the lease of real estate for a limited term. This regulation allows for the temporary use of properties through a lease agreement lasting from one to eleven months at an agreed price. As a form of lease, it is governed not only by the specific provisions of this chapter but also, supplementarily, by the general leasing regulations established in the Civil Code of the state.

Considering the growing demand for short-term rentals, it is very likely that, in the next months, various States will implement regulations aimed at overseeing these types of leases. We will remain highly attentive and will keep you informed about any relevant new regulations.