Business · Companies · 3 hrs ago

Mexico City tourism rentals face a 50% annual occupancy limit

Mexico City tourism rentals face a 50% annual occupancy limit

Mexico’s Supreme Court is due to review rules for tourist rentals in Mexico City.

The dispute includes a rule limiting a property’s use as a tourist rental to 50% of the nights in a year.

Under the challenged rule, a property could lose renewal of its registration for exceeding that limit, even if it meets other tax, administrative and safety requirements.

The Mexican tourist-rental association says the rules make it harder to operate legally and could affect families and small businesses connected to the sector.

It says Mexico City has about 25,759 active tourist-rental homes, or 0.8% of the city’s housing, alongside about 207,000 vacant homes.

Those figures do not rule out pressure in particular neighbourhoods, but the association says housing shortages and vacant properties should also be considered when assessing rents.

The court’s review could examine whether the limits protect housing without imposing disproportionate costs on a formal business activity.

The association says the rules should be reconsidered to improve housing protection, safety and compliance.

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What people are saying

Sean Cázares AhearneAMVITUR director general
We are in favor of regulation. But regulating should not mean preventing a legitimate economic activity from operating.
via El Financiero
There is a difference between supervising the conditions under which a service is provided and limiting its operation.
via El Financiero