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Whether you’re moving to Cabo San Lucas, San José del Cabo, or the East Cape for the first time, relocating from another city in Mexico, upgrading to a larger family home, or downsizing to a low-maintenance condo, understanding the legal requirements for renting in Cabo is absolutely essential.

Renting here is more than just finding a place you love — it’s about knowing your rights, protecting your money, and avoiding costly mistakes. The reality is that too many tenants sign leases without reading the fine print, and too many landlords hand over keys without the right legal protections in place. Both situations can lead to disputes over deposits, unexpected rent increases, or even legal battles.

In this guide, we’ll walk you through the rental process in Cabo in clear, simple terms — no complicated legal jargon — so you’ll know exactly what to check before signing anything. Whether you’re a Mexican national, a long-term Cabo resident, or an expat starting a new chapter in paradise, you’ll learn how to rent safely, legally, and with total peace of mind.

✅ 1. The Legal Framework in Cabo

When you rent a property in Cabo San Lucas, San José del Cabo, or the East Cape, your lease isn’t just a handshake agreement — it’s governed by Mexican law. Specifically, two sets of regulations apply:

· The Mexican Federal Civil Code – establishes the general legal framework for rental agreements across the country.

· The Baja California Sur Civil Code – adds state-specific clauses, procedures, and timelines for handling rental disputes, evictions, and tenant/landlord obligations.

What this means for you:

· The core rental rules (such as the need for mutual consent, obligations to maintain the property, and deposit rules) are similar throughout Mexico.

· Baja California Sur has its own procedures — for example, timelines for returning deposits, steps for initiating an eviction, and how notices must be delivered — so understanding these local rules is key.

· Verbal rental agreements are legal in theory but extremely risky in practice. Without written proof, it’s difficult to prove what was agreed upon, making disputes expensive and time-consuming to resolve.

· A detailed written contract is the gold standard for protecting both tenants and landlords, covering everything from rent amount and due dates to maintenance responsibilities and move-out procedures.

✅ Pro Tip: Always ensure your lease is in writing, signed by both parties, and ideally reviewed by a professional familiar with Baja California Sur rental laws.

✅ 2. The Lease Agreement (Contrato de Arrendamiento)

Your lease agreement isn’t just paperwork — it’s the single most important legal document in your rental process. In Cabo San Lucas, San José del Cabo, and the East Cape, this contract establishes the rights and obligations of both landlord and tenant from day one until the end of the tenancy.

By law, a solid lease should clearly include:

· Full Names & Official IDs – Include complete legal names of landlord and tenant(s), along with official identification:

o Mexicans & locals: INE or passport.

o Foreigners: Passport and, if applicable, immigration card (Temporary or Permanent Resident).

· Complete Property Address & Description – State the exact address and a clear description of the unit or house. This should also list extras like parking spaces, storage units, rooftops, or private gardens included in the rental.

· Lease Term – Specify start and end dates, and whether it’s a fixed-term contract (e.g., 12 months) or a renewable one.

· Rent Details – Include the amount, currency (MXN or USD), payment method (bank transfer, cash, etc.), and exact due date.

· Security Deposit – State the amount, how it must be paid, and the exact conditions for its return. This avoids disputes at move-out.

· Maintenance Responsibilities – Clarify who pays for what: tenants typically handle minor repairs, while landlords cover structural or major issues.

· Pet Policy – Specify if pets are allowed, and under what conditions (e.g., size limits, additional pet deposit, no exotic animals).

· Early Termination Rules & Penalties – Detail what happens if either party wants to end the lease early, including any penalties or forfeiture of deposit.

· Renewal Terms – Define whether the lease renews automatically or requires a new agreement.

✅ Pro Tip: Always sign two original copies of the lease (one for each party) and keep them in a safe place. Also, attach an inventory list and photos as part of the contract — they’re your best protection in case of disputes.

✅ 3. ID and Documentation Requirements

The documents you’ll need to rent a property in Cabo San Lucas, San José del Cabo, or the East Cape vary depending on whether you are a Mexican national, local resident, or an expat. While the law sets general guidelines, landlords and property managers often have their own requirements to ensure financial security and tenant reliability.

For Mexican Tenants (Residents & Nationals)

Most landlords in Baja California Sur will request:

· INE (Official ID) or Passport – A valid form of government-issued identification.

· Proof of Income – Recent nómina (pay stubs), bank statements (last 3–6 months), or annual tax returns for self-employed individuals.

· Fiador (Co-Signer) – Common for long-term leases (12 months or more). A fiador is typically a property-owning relative or acquaintance in Mexico who guarantees payment if the tenant defaults.

For Expats (Newcomers & Long-Term Foreign Residents)

Requirements can vary more widely for expats, especially if they don’t have financial history in Mexico:

· Passport – Your primary form of ID.

· Proof of Income or Employment – Bank statements (last 3–6 months), a formal work contract, or proof of steady foreign income (e.g., pensions, remote work salary).

· Higher Security Deposit – If you don’t have a fiador in Mexico, landlords often request two months’ deposit instead of one.

· Mexican Bank Account (optional but highly recommended) – While not mandatory, having a local account makes paying rent in pesos faster, cheaper, and more secure.

✅ Pro Tip for Tenants: Have digital and printed copies of all your documents ready before starting your rental search — this speeds up the approval process and shows landlords you’re serious.

✅ Pro Tip for Landlords: Always verify documents directly with employers or banks when possible, especially for high-value rentals, to avoid fraud.

✅ 4. Security Deposit Rules in Cabo

In Cabo San Lucas, San José del Cabo, and the East Cape, security deposits (depósitos en garantía) are standard in rental agreements, but the law doesn’t dictate a fixed amount — it’s up to the landlord and tenant to agree on the terms. That’s why knowing the local best practices is key to avoiding disputes later.

Typical Deposit Amounts in Cabo

· Unfurnished Rentals – Usually 1 month’s rent.

· Furnished or High-Value Rentals – Commonly 2 months’ rent due to the added value of appliances, décor, and furniture.

· Luxury Properties – Often 2 months or more, especially if they contain premium finishes, expensive furniture, or high-end appliances.

When and How the Deposit is Returned

By law and best practice, the deposit must be returned at the end of the lease if:

· There is no unpaid rent.

· All utility bills (electricity, water, internet) are paid.

· There is no damage beyond normal wear and tear.

⏳ Timeline: Many landlords return the deposit within 30 days after move-out, but this should be clearly stated in the lease agreement.

Best Practices for Protecting the Deposit (For Both Sides)

1. Create a Detailed Move-In Inventory – List every item in the property (from appliances to décor) and note its condition.

2. Attach Photos or Videos – Include date-stamped images to avoid disputes over pre-existing issues.

3. Sign the Inventory – Both landlord and tenant should sign each page and keep a copy.

4. Document Move-Out the Same Way – Use the same checklist and take updated photos.

✅ For Tenants: If you don’t have proof of the property’s original condition, it can be hard to get your deposit back.

✅ For Landlords: Without documentation, it’s nearly impossible to legally keep the deposit — even if the tenant caused damage.

✅ 5. Taxes and Invoicing (Facturación) in Cabo Rentals

When renting a property in Cabo San Lucas, San José del Cabo, or the East Cape, both tenants and landlords often get confused about facturas (official tax invoices) and how taxes apply to rent payments. Understanding this is important not only for legal compliance, but also for financial planning — especially if you want to deduct rent expenses.

How Taxes Work for Rental Properties in Mexico

· If the landlord is registered with the Mexican Tax Authority (SAT) — for example, under RESICO or another tax regime — they are required to declare rental income and, in many cases, issue an official factura.

· IVA (Value-Added Tax) – Residential leases may be subject to 16% IVA if the property is rented for business or commercial use, or if the landlord’s tax situation requires it. For strictly residential use, IVA is usually not applied unless the landlord issues invoices by choice.

· ISR (Income Tax) – Landlords must also pay income tax on rental income, but this doesn’t directly affect tenants unless it impacts the rental price.

For Tenants: When You Need a Factura

You should request a factura if:

· You are a business owner, freelancer, or professional who can legally deduct rent expenses.

· You rent through a company lease (e.g., your employer pays for the rental).

· You want official proof of payment for legal or accounting purposes.

📌 Important: If the landlord is renting informally (without issuing invoices), you will not be able to deduct the rent from your taxes.

For Landlords: Why Facturación Matters

· Issuing a factura makes your rental tax-compliant and more attractive to corporate or high-profile tenants who require invoices.

· Not issuing a factura limits you mainly to tenants who pay informally, which can reduce your market reach.

· If you issue facturas, you must register with SAT, declare rental income, and, if applicable, add IVA to the rent price.

✅ Pro Tip for Landlords: Always clarify in your listings and lease agreement whether rent is plus IVA or IVA included. Misunderstandings about taxes are a common cause of disputes in Cabo rentals.

✅ 6. Tenant and Landlord Legal Obligations in Cabo

In Cabo San Lucas, San José del Cabo, and the East Cape, both tenants and landlords have specific legal responsibilities under the Baja California Sur Civil Code and the Mexican Federal Civil Code. These obligations are not just formalities — they help ensure a fair, transparent, and conflict-free rental experience.

What Landlords Must Do by Law

1. Deliver the Property in Habitable Condition

o The property must be safe, functional, and ready for immediate occupancy.

o Utilities like water, electricity, and gas should be connected and working, unless otherwise stated in the lease.

2. Respect the Full Lease Term

o Once signed, the lease is binding. A landlord cannot end it early without legal cause (such as non-payment or severe damage).

3. Return the Security Deposit

o If there is no unpaid rent, utilities, or damages beyond normal wear and tear, the deposit must be returned within the time stated in the lease.

4. Provide and Enforce HOA Rules

o If the property is within a homeowners’ association, the landlord must give the tenant a copy of the HOA rules in writing.

o The landlord is also responsible for ensuring the tenant complies with them.

What Tenants Must Do by Law

1. Pay Rent on Time

o The payment schedule, currency, and method must follow what’s stated in the lease agreement.

2. Maintain the Property

o Tenants must keep the property clean, handle small repairs, and avoid causing damage.

o Damages beyond normal wear and tear may be deducted from the deposit.

3. Respect HOA and Municipal Rules

o Tenants must follow community regulations, noise ordinances, parking rules, and other local laws.

4. Report Issues Promptly

o Tenants should notify the landlord as soon as possible if repairs are needed — especially if delaying could cause more damage (like water leaks).

✅ Pro Tip: A well-written lease in Cabo should clearly list all legal obligations for both parties to avoid confusion later.

✅ 7. Eviction and Legal Protection in Cabo

In Cabo San Lucas, San José del Cabo, and the East Cape, evictions must always follow legal court procedures under the Baja California Sur Civil Code.

It is illegal for landlords to:

· Change the locks

· Shut off utilities

· Remove the tenant’s belongings

without a court order. Doing so can result in legal consequences for the landlord.

Valid Legal Reasons for Eviction

A landlord can initiate eviction proceedings if a tenant:

· Fails to Pay Rent

o Even one missed payment can trigger legal action if the lease allows it.

· Causes Significant Damage to the Property

o Beyond normal wear and tear, such as breaking fixtures, damaging walls, or neglecting maintenance.

· Engages in Illegal Activities

o Any unlawful conduct on the premises (drug-related activity, unlicensed business operations, etc.) is grounds for immediate legal action.

· Violates Key Lease Terms

o Examples: Unauthorized subletting, keeping pets when prohibited, or ignoring HOA rules repeatedly.

The Eviction Process in Baja California Sur

1. Written Notice

o The landlord must give the tenant formal written notice stating the reason for eviction. This should follow the timeframes in the lease or local law.

2. Evidence Gathering

o Collect copies of the lease, payment records, photos of damages, written warnings, and any communications related to the issue.

3. Filing in Civil Court

o The landlord’s lawyer files an eviction claim with the Baja California Sur civil courts.

4. Court Resolution & Enforcement

o If the court rules in favor of the landlord, an official eviction order is issued. Only the court can authorize removing the tenant.

✅ Pro Tip for Tenants: If you receive an eviction notice, do not ignore it. Seek legal advice immediately to protect your rights.

✅ Pro Tip for Landlords: A well-written lease is your best defense — it ensures the eviction process is faster and more straightforward.

✅ 8. Common Legal Mistakes to Avoid When Renting in Cabo

Whether you’re signing a lease for six months or five years in Cabo San Lucas, San José del Cabo, or the East Cape, small oversights can turn into costly legal problems later.

Here are the most common mistakes tenants and landlords make — and how to avoid them:

1. Relying on Verbal Agreements

In Mexico, verbal rental agreements may be legal, but they’re almost impossible to enforce. Without written proof:

· Landlords struggle to claim unpaid rent or damages.

· Tenants have no guarantee of rent terms or lease duration.

✅ Solution: Always sign a detailed written lease in duplicate, with both parties keeping an original.

2. Skipping the Move-In Inventory & Photos

Without a signed inventory list and dated photos, disputes over damages at move-out can become your word against theirs.

✅ Solution: Document every room, appliance, and piece of furniture — and have both parties sign the list.

3. Leaving Rent Currency and Payment Method Vague

In Cabo, rent may be set in Mexican pesos (MXN) or US dollars (USD) — but if you don’t specify, exchange rate disputes can arise.

✅ Solution: Clearly state in the lease the currency, payment method, due date, and where payments should be sent (bank account, cash, online transfer, etc.).

4. Forgetting to Define Rent Increases

Without a written clause, landlords cannot legally raise rent mid-lease — and tenants may be shocked by sudden increases at renewal.

✅ Solution: Include the percentage and frequency of rent adjustments (e.g., 5–7% annually).

5. Allowing Pets Without a Written Policy

A casual “pets allowed” agreement can backfire if damage occurs or neighbors complain.

✅ Solution: Put it in writing — specify the type, size, and number of pets allowed, plus any extra deposit or cleaning fees.

Bottom line: The easiest way to avoid legal problems is to put everything in writing and be as specific as possible from the start.

✅ 9. FAQs – Legal Requirements for Renting in Cabo

These are the most common questions tenants and landlords ask when renting in Cabo San Lucas, San José del Cabo, and the East Cape.

1. Can I write my lease in English?

Yes, but for legal purposes, it’s best to have it in Spanish or a bilingual (English–Spanish) format. In case of dispute, Spanish will be the legally binding version in Mexican courts.

2. Can I pay rent in USD?

Yes — as long as the lease clearly specifies the currency. If it doesn’t, rent is legally assumed to be in Mexican pesos (MXN).

3. Do I need a co-signer (fiador)?

Locals often do for long-term leases. Expats who don’t have a fiador may be asked for a higher security deposit (often two months).

4. Can a landlord keep my deposit for normal wear and tear?

No. Deposits can only be used for:

· Damages beyond normal use

· Unpaid rent

· Unpaid utilities or services

5. Do I have to register my lease?

It’s not mandatory in Baja California Sur, but registering a lease with a notary or public registry strengthens your legal position in court.

6. Can a landlord increase rent anytime?

No. Increases can only happen if allowed in the lease or when the lease is renewed.

7. Can a tenant leave before the lease ends?

Yes, but early termination penalties usually apply — in most cases, losing part or all of the security deposit.

8. What happens if the property is sold during my lease?

Mexican law states the new owner must honor the lease until it expires, provided the lease is legally valid.

9. Can the landlord enter without permission?

No — unless it’s an emergency (e.g., water leak, fire). Ideally, all non-emergency visits should be with at least 24-hour notice.

10. Can I sublease my rental?

Only if the lease expressly allows it in writing. Otherwise, subleasing without permission can be grounds for eviction.

✅ 10. Final Thoughts

Renting in Cabo San Lucas, San José del Cabo, or the East Cape can be a smooth, safe, and rewarding experience when you understand the legal requirements and protect yourself with clear, written agreements.

Whether you’re:

✔ A Mexican family relocating from another state,

✔ A long-time resident upgrading or downsizing, or

✔ An expat starting a new chapter in paradise,

the golden rules remain the same:

· Always have a detailed written lease in Spanish or bilingual format.

· Read every clause carefully before signing.

· Keep records, receipts, and photos from move-in to move-out.

· Know your rights and obligations as set out in Mexican law.

By following these steps, you greatly reduce the risk of disputes and ensure a positive rental experience in Baja California Sur.

⸻

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