G9 position on Mexico City Fair Rents Law, Digi Mart USA News (Mexico City): The G9 group of Mexico City, which brings together the main chambers, business associations and sectoral organizations of the capital, has proposed modifying the initiative for the Law on Tenancy Relations and Fair, Reasonable and Affordable Rents, put forward by Head of Government Clara Brugada and currently under review.
The group wants landlords and tenants to be able to freely agree on the initial rent when a contract is signed with a new tenant. According to the G9, the annual inflation-based increase limit should remain in force throughout the lease and its renewals with the same tenant.
Once a new contract is agreed with a different tenant, the annual increase limit would apply again, the group said. The G9 argued that keeping a rent set under particular circumstances as a reference for later contracts could reduce owners’ incentives to maintain, improve and offer their homes for rent.
The organizations acknowledged the importance of preventing disproportionate increases and providing stability for renting families. They said regulation should also encourage the preservation and creation of rental housing and expand options for people seeking a home.
The G9 also plans to submit proposals on the digital contract registry, the effectiveness of guarantees and the impartial operation of the Tenant Defense Office, aiming to strengthen legal certainty between owners and tenants. The group thanked the Mexico City government for its openness to dialogue and the City Congress for the open parliament spaces used to discuss the initiative.
The G9 reiterated its willingness to keep participating in the legislative process. The position adds to other objections raised during the debate, including from the opposition in the local Congress and the Green Party (PVEM), which conditioned its support on changes to nine aspects of the bill, among them rent increase limits, contract registration and validity, deposits and guarantees, contract extensions and the definition of leasing.
