New bill negatively impacts private property in Mexico City

In 2019, Mexico City saw the first attempt to pass a bill that established that defaulting tenants could only be evicted in “exceptional cases,” which represents the legalization of invasions. Now, the Asset Recovery Law compares the average citizens to members of organized crime; therefore, the citizen is at risk of losing their property when authorities are investigating them.

In 2020, lawmakers proposed a bill, that was not approved, which forced landlords to sign three-year contracts. If the contract lasted less than three years, the relationship between the landlord and the tenant was annulled. This was considered as an attempt at rent control.

Moreover, if the landlord didn’t have a physical copy of the contract, they could not demand the payment of overdue rent or evict the defaulting tenant.

This bill was discarded a few days ago and now EL UNIVERSAL reveals that Morena lawmakers in Mexico City’s local Congress are looking to ban residents from renting their properties, as an alternative to hotels, to national and international tourists.

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The proposal includes fines for up to MXN 26,064 for property owners who use their homes or apartment for accommodation purposes. In a bid to enforce the law, lawmakers proposed the creation of a Surveillance Committee.

Why do lawmakers insist on undermining the private property? In Mexico, and also throughout the country, some individuals and companies rent properties but also families who make an effort to build an extra room or apartment inside their properties to rent it and obtain more resources through it.

The lawmakers who proposed the new bill argued that this is to prevent the unfair competition between digital platforms and hotels; however, it should be regulated not halted. Besides the current economic crisis, renting properties to tourists could be an option for those who recently lost their jobs.

All the proposed bills include penalties and fines against property owners but do not include penalties for defaulting tenants and squatters. Lawmakers argue that they aim to defend the right to housing; however, instead of proposing policies to promote social housing, they harm legitimate property owners.

Everything indicates that the local Congress is targeting the wrong people.

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