On August 22, the Congress of Mexico City approved the initiative presented by the Head of Government to reform the Housing Law of Mexico City and the Civil Code for the Federal District. The primary objective of this reform is to curb excessive rent increases, implement a digital registry of lease agreements, and guarantee the construction of affordable public housing for vulnerable populations (hereinafter the “Reform”).

The Reform stipulates that rent increases for housing in Mexico City may not exceed the inflation rate reported by the Bank of Mexico in the preceding year, whereas it is currently stipulated that the rent increases may not exceed 10% of the monthly rent amount agreed upon in the lease agreement. The increase will be calculated based on the monthly rent agreed in the lease contract.

Furthermore, a mandatory digital registry of all active lease contracts will be implemented and overseen by the Mexico City Government. Landlords will have a maximum of 30 days from the signing of the contract to complete this registration, which must be authorized by the government.

Consequently, once these modifications are published in the Official Gazette of Mexico City, they will enter into force on the following day. Regarding the digital registry of contracts, the Mexico City Government will have a maximum of 30 days from the effective date of the Reform to establish the mechanism for registering lease agreements. Additionally, lease agreements in progress at the time of the Reform's enactment must be registered by the landlord within 90 days of the establishment of the aforementioned mechanism.

For any questions or advice regarding this matter, our team of experts is at your disposal at the following email addresses:

Paul Kavanagh: paul@k-g.com.mx

Luis Kanchi: Lkanchi@k-g.com.mx

Miguel Alonso: malonso@k-g.com.mx