Mexico City studio: raise MX$34,360 rent or prioritize a reliable tenant?

G

garden.far

Property investor
I need to settle the next rent before the notice timetable becomes an issue. The Mexico City studio currently brings in MX$34,360 a month from a tenant who pays consistently and looks after it, while similar advertisements are nearer MX$38,960.

Going straight to the higher figure risks losing more through an empty month, preparation work and reletting than the increase would recover. I’m leaning towards a smaller rise rather than trying to close the full MX$4,600 gap at once. My next step is to check the lease dates and local notice requirements, then explain the proposed amount to the tenant. Does that sound like a reasonable compromise?
 
I would not chase the full asking figure with this tenant. If those are monthly numbers, the maximum gap is MX$55,200 over a year. Even a relatively short vacancy plus preparation costs could consume much of that.

Start below the full gap and explain the adjustment plainly. Payment reliability and good care have real economic value, even if they do not appear in comparable listings.
 
Are the comparables genuinely like-for-like—same area, condition, furnishings and included services—or simply nearby studio advertisements? Asking rent is also not necessarily the amount ultimately agreed.

The lease dates matter too. Before choosing a number, confirm when an increase can take effect, what notice is required in Mexico City, and whether the lease already says how reviews are handled.
 
One more thing: look at the maintenance history before deciding. If repairs or deferred work are outstanding, combining an increase with a clear plan to address them will feel fairer than pointing only to the market.

Also keep the existing deposit separate from the negotiation. Any proposed change to it should be checked against the lease and current local requirements rather than assumed to rise automatically.
 
I’d go further than emil and avoid presenting MX$38,960 as the target at all. It may anchor the discussion around a figure supported only by advertisements, while the current tenant has already demonstrated qualities an unknown replacement may not have.

Work out the lowest increase that meets your actual costs, then have a conversation before serving formal notice. A smaller increase accepted calmly can be a better business result than maximizing nominal rent and creating turnover risk.
 
That is fair, although I would still keep the market figure in the owner’s private calculation. A practical sequence would be: verify truly comparable units, total likely vacancy and refurbishment costs, review the lease and Mexico City notice requirements, then choose a moderate figure with room for discussion.

Put the final amount and effective date in writing only after checking the local rules. The decision should compare net outcomes, not MX$38,960 versus MX$34,360 in isolation.
 
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