The lease agreement is a fundamental document in any property rental—whether residential, commercial, or industrial. However, many people make mistakes when drafting or signing it, which can lead to legal and financial conflicts. If you’re about to rent a space in Mexico City, make sure to avoid these mistakes to ensure a smooth experience.

1. Lack of Clear Definition of the Leased Property
One of the most common mistakes is failing to provide a detailed description of the property. It’s important that the contract includes:

• Full address of the property.
• Specific features (square meters, number of parking spaces, etc.).
• Inventory of furniture or installations included in the rental.
  This level of detail helps prevent misunderstandings about what the tenant is entitled to use.

2. Not Specifying the Rent Amount and Payment Terms
The contract must clearly state:

• The exact rental amount.
• The monthly payment due date and possible penalties for late payment.
• Accepted payment methods (transfer, cash, check).
  It’s also advisable to indicate whether the rent includes services such as water, electricity, and maintenance, or if these must be paid separately.

3. Not Indicating the Contract Term
A lease agreement must specify the duration of the agreement:

• Fixed term: One year, two years, etc.
• Indefinite term: If agreed on a month-to-month basis, it’s important to define the termination procedure.
  In Mexico City, the Condominium Property Law establishes rules for lease agreements, so clearly defining the term helps avoid legal issues.

4. Unclear Termination Clauses and Penalties
Contract termination is a critical point. The agreement should include:

• Valid reasons for terminating the contract.
• Notice period (usually 30 days).
• Possible penalties for early termination.
  Failing to include these aspects can lead to disputes between landlord and tenant when ending the lease.

5. Lack of a Proper Guarantor or Security
In Mexico City, many landlords require a guarantor who owns property in the city or a legal policy to guarantee compliance with the contract. Not clearly defining this requirement can lead to issues if the tenant stops paying rent.

6. Forgetting Clauses about Property Use
The lease should clearly state:

• Permitted use of the property: Residential, industrial, office, commercial, etc.
• Prohibitions: Subletting, structural modifications without permission, illegal activities.
  This protects the landlord in case the property is misused.

7. Not Considering Condominium Rules
If the property is located within a condominium, it’s essential that the contract includes the internal regulations, such as hours for using common areas, maintenance fees, and additional restrictions.

Professional Advice: The Key to a Solid Contract
To avoid any complications and ensure your lease agreement complies with all necessary regulations, it’s best to seek specialized advice. At Camacho Bienes Raíces, we help you draft, review, and negotiate secure and well-structured lease contracts, protecting your interests and ensuring a hassle-free rental.

Conclusion
Avoiding these lease agreement mistakes in Mexico City can prevent conflicts and ensure a smooth experience for both parties. If you’re about to rent or lease a property, having professional support can make the difference between a complicated process and a successful transaction.