Mexico - Avoid Real Estate and Contractual Scams Part 3

Something else that takes place constantly and that you have to watch for is the “Gringo Rental price” and the “Mexican Rental Price”.

Just why do Mexicans think they can exploit a Gringo when they see one coming down the pike? Now, is this true of all Mexicans without exception? I do not know since I have not met nor had experiences with “all Mexicans without exception.” But it is beginning to look like my expat innocence (stupid naïveté) is getting a lesson in what it is “really like” to live in Mexico.

I am a person who can get along with “almost” anyone. I have had the philosophy that someone is innocent until proven guilty. (Oh, my. How naïve is that?). Even if I hear the vilest rumors about someone, I generally regard them as just that—rumors—until that person actually acts out those rumors in my face. In other words, I always give someone the “benefit of the doubt” until he proves to me otherwise.

It is becoming apparent to me there “is” some anti-American sentiment here; only it is subtle and unassuming. I have yet to witness personally, or hear on the news, about any marches as were seen in Argentina the last time Bush was there, in which the locals chanted, “Yankee go home”. However, I do not exclude the possibility of seeing something like that someday in Mexico.

How the anti-American sentiment shows itself here is Americans are seen as stupid, arrogant, imperialistic, and self-serving. (I do not entirely disagree with that evaluation. Witnessing some of the behavior of Americans in this country, I can see where the Mexicans get this idea.)

However, this unfortunately seems to work itself out in the attitude “since some Americans are horrid behavioral monstrosities, we Mexicans can take advantage of all of them and exploit them”—and exploit them they do.

It used to be the only Gringos who would come to Mexico were the rich ones. Thus, all of us are still seen in that light. Mexicans, in my experience, see gringo faces and think we are all fabulously wealthy. In fact, they think we throw more money away than a Mexican makes in a lifetime.

Mexicans have seen that the type of Americans who traditionally expatriated here were the rich. Mexicans understand class structure all too well. They have had hundreds of years of practice in getting what they want and need from the rich.

Traditionally, it was the “rich American” who would come to Mexico, usually to the country’s west “Gold Coast”, and buy up all the real estate. You can still see this in cities like Puerto Vallarta. Elizabeth Taylor and Richard Burton, who lived in Vallarta, were prime examples. These rich Americans would hire the locals as servants. The servants, when they went home after work, would tell family and friends just how Americans lived—like movie stars. They appeared to be, and were in most cases, fabulously wealthy and acted like the spoiled children that they, in most cases, were. Thus the stereotype was set.

The rich, upper class Americans became the local servants’ “PATRONS”. They would often pay their servants the lowest possible wages, but the locals accepted this because the Americans provided for them in other ways. They paid for the Mexican’s family members when they took ill, for the births of their children, baptisms, deaths, and so on. The rich Americans got by with treating the locals badly and paying them poorly because, in the long run, they would provide these extra services that benefited the Mexicans. One rich upper class American could not be outdone by his rich upper-class neighbor, so he would keep up the Patron act to conform. Again, Mexicans benefited.

What Mexicans never saw, and had no experience with, was an American “middle class”. It didn’t exist then nor does it now exist in their culture. There was absolutely no concept of an American who wasn’t Elizabeth Taylor/Richard Burton rich. There was no concept of an American who could not, nor would want to, become their Rich American Patron and take care of them and all their family. There was no idea what an American middle class looked like much less that one existed.

Mexicans with property to sell or rent have been accustomed to rich, upper-class Americans who would breeze into town and show a willingness to pay outrageous prices for everything from housing to food. There developed, therefore, the prices for “The Gringos” and the prices for “The Mexicans”.

My wife and I have seen this over and over again here in Guanajuato. We have experienced this with the landlords here. They see you coming and, suddenly, the local property owners start hearing, “Cha-ching, cha-ching”. Dollar signs start floating before their eyes. The vendors and service providers are the same way. Their culture evolved the idea that anyone from America is so wealthy, he can afford to pay higher prices than Mexicans can pay. They take full advantage of this.

If you are a Mexican trying to rent a house, you will be told one price. If you are an American, be prepared to pay through the nose.

It is, I believe, because Mexicans have no concept of a middle class, a class that is just now beginning to visit, and even expatriate, to Mexico.

Our friends from northeastern America were paying $700.00 a month for their mortgage. They moved to Mexico and a landlord charged them $600.00 a month to rent a studio apartment. But, they were new to Guanajuato, the landlord knew it, and they were stuck with an overly inflated rental—BECAUSE THEY WERE GRINGOS.

Is this evil exploitation? Maybe. But it is their culture. If they are ever to change, it will have to be on their terms and in their time.

Is there anything you can do about it? Nope. If you cannot cope with it, then expatriating to Mexico is not for you.

Our former landlord rented our former casita, less than 1000 square feet, with two bedrooms, one bath, and service patio with a washer, to us for $500.00 a month. That is OUTRAGEOUS for Central Mexico. Then, after we moved, she turned around and rented it for $700.00 a month to some other Americans. For Mexicans, the price for this property would have been around $400.00 a month.

Lastly, you have to watch out for landlords who believe you are such a filthy rich American that they have no qualms whatsoever about wiring the outside security lights into your meter. You pay for their security lights—and they DO NOT tell you that fact.

So, does this mean if you are a middle-class American wanting to retire to Mexico, and you cannot afford rich, upper-class prices, you are doomed to this exploitation? Pretty Much. Unless, of course, you apply the remedy I will explain in the next section.

Mexican Rental House Checklist

If you decide you indeed want to spend the rest of your days in Mexico, you will want to rent a place before deciding if you want to buy or not. Here is what you need to ask, do, and insist on to keep yourself from being ripped off by Mexican landlords. I wish someone had told us the following BEFORE we moved to Mexico.

Suggestion #1

First, realize if you have no contacts here, you will be at the mercy of this “Mexican one price and Gringo another” exploitation. There is nothing you can do about it. It will happen. Be prepared. Get over it.

When you move here, sign a lease for only 6 months at a time.

During your 6-month lease, while in the clutches of a Mexican landlord who will regard you as a moneybag he can exploit and drain dry, start making contacts.

It appears the more important people you know (be sure to name-drop to potential landlords), the less likely you will be bamboozled and hoodwinked.

In other words, if you make friends with someone in the community who is influential, and drop that name in front of a would-be evildoing, exploiting Mexican landlord, the less likely you are going to get taken. Someone of great influence has the capacity to ruin a reputation and shut a rental racket down. Exploitive Mexican landlords know this. They will be less likely to take you for all you’re worth if they know you can tell someone of influence what the evil landlord did to you.

Take advantage of this and use this strategy liberally.

Once you have established yourself and made these contacts, you will be in a better position to protect yourself from the would-be exploiters. This will become your bargaining chip.

Suggestion #2

Go to Spanish language schools and ask the person who coordinates the housing for students about the housing situation. They will be in the know on who is trustworthy and who is not. They will not deal with the known shysters because this would be bad for their Language School business. If an American student gets screwed by the homestay or apartment rental arrangements, then that American will most likely sing like a canary when he or she gets home. He or she may even create a website mean-mouthing the school. So, the schools are a good source for reliable housing information.

When viewing an apartment for rent, you need to have a checklist, either memorized or written out. Always have in the forefront of your mind that a Mexican landlord sees an American renter as a fabulous, endless source of funds for remodeling his apartment or house.

At the end of your lease, the landlord will tell you that you broke everything from the plumbing to the electricity. He will tell you that you will receive NOT ONE THIN DIME (peso) back of your rental deposit. I am not making this up—TRUST ME. So, to try to head this off at the pass, you need to use to following as a checklist. It is not a bad idea to have the potential landlord actually sign something agreeing to the faults that exist before you take possession of the property. Always get EVERYTHING in writing.

Suggestion #3: Mexican Rental Housing Checklist

1) Make sure there is a hot water heater. It will probably be on a patio or in the bathroom. Ask the landlord to show you how to light it. The pilot light will go out when your gas tank runs out of gas and your landlord may not be available to light it again. Also, if the hot water heater is located outside, the pilot light may blow out when there is a lot of wind.

Gas usually comes in four-foot-high tanks stored on a patio or terrace. Ask the landlord to show you where they are located and how to switch from one tank to the other. When the pilot light on your water heater won’t stay lit or you can’t light the burner on your stove, you will know it’s time to switch the empty tank to the full one. Some houses and apartments have large gas tanks on the roof. Ask the landlord how to read the gauge on the rooftop tank so you will know when you need to have it filled. Also, ask the landlord who is responsible for calling the gas company and paying for the delivery. We call our landlady when we need gas, she pays the delivery person, and we reimburse her when we pay the rent.

If your landlord pays for the gas and you reimburse him, be sure he shows you the gas company receipt. Also, it is a good idea to check the price of gas posted on the gas trucks whenever you see them around town. That way, you will have an idea if the amount your landlord says you owe is correct. We have heard stories of landlords charging their renters 50-100 pesos more than the amount they paid to the gas company.

2) Try all the faucets, flush the toilet, and turn on the shower. Make sure there are no leaks, the water is clean, and there is enough water pressure. Also, make sure that all the faucets have hot and cold water—several places we looked at only had cold water in the kitchens.

3) Check to see how many electrical outlets there are in each room. Are there enough to meet your needs? Ask the landlord if there are frequent power outages. Ask where the fuse box is located and how to change the fuses. Also, ask if there is sufficient power to run more than one appliance at a time (we cannot use our computer when we use the washing machine). We recommend you use at least a surge protector for your electric appliances; a voltage regulator with battery backup is recommended if you have a computer, as there are frequent power surges and occasional power outages.

4) Check to see if there is a phone line and a phone in the house. It can take up to two years to get a phone line put in your house, so if a phone is something you need, it is better to find a place that has an existing line. Also, be sure to ask if the previous bill has been paid. If it is unpaid, you will not be able to use the phone.

Also, ask who receives the bill. Does it come to your house or apartment or is it delivered to the landlord’s house? Is it your responsibility to go to the telephone company office to pay the bill or will your landlord pay it and have you reimburse him? If you are responsible for paying the bill in person, ask your landlord where you can pay it. Guanajuato has several stores that will accept payment in addition to the Telmex office.

Check the bill (all the pages) to be sure you are not charged for calls you did not make. It is a good idea to keep a log of all your long-distance calls. Telmex only allows 100 local calls a month as part of the rental. For every call over 100, you are charged about 1-½ pesos. If you have dial-up Internet service, be sure to turn off the automatic redial feature. Otherwise, you will faint when you receive your first bill.

5) Ask the landlord for an estimate of the cost of utilities. Ask who is responsible to pay the bills. Our landlady pays the bills and then we reimburse her when we pay the rent. It can be a hassle to go to all the various utility offices and stand in long lines to pay your bills. Again, have the landlord provide receipts showing the amounts he paid for each utility bill.

6) Ask if there has been a history of bug problems in the house or apartment. Who is responsible for fumigation? In our first apartment, we had a terrible problem with scorpions. Fortunately, we’ve only seen two scorpions in our present house.

7) Check to see if you can find evidence of leaks around the windows and ceiling. We have found that windows here usually leak when it rains. Ask who is responsible for repairs if there is a leak in the roof or if there is damage because of leaky windows.

8) Check all window and door locks to make sure they work properly. Also, make sure the bars on the windows are strong and don’t need to be repaired.

9) If the house or apartment is furnished, is there furniture to meet your needs? If there is something you need, ask the landlord if he or she has something you can use. Are there enough pots and pans, dishes, silverware, towels, sheets and blankets?

10) Do the bedrooms have closets? Many Mexican homes do not have closets but there may be wardrobes where you can store your clothes. Ask the landlord to supply a wardrobe or chest of drawers if there isn’t a place to put your clothes.

11) Ask the landlord where you can find the nearest market, pharmacy, doctor, dentist, hospital, and Laundromat. Ask him for recommendations.

12) Ask whether the trash is picked up or if you need to take it to a dumpster. Ask where you can find the nearest dumpster.

13) Check the area around the house or apartment. Is it located on a busy street or near a school? Is there a bar or cantina nearby? If you want a quiet place in which to live, you will not want to live close to a busy street, bar, or school. Is there a bus stop close to the house?

14) How much notice will you need to give before moving out? What happens if you need to move before your lease expires? How long will it take for the landlord to refund any deposits you paid before moving in? Will you lose all or part of your deposit if you break the lease?

15) Ask if the plumbing lines are vented. If they are not, gas from the sewer will come up out of the drains. You can easily solve this by placing flat rubber stoppers over all the drains.

16) Be sure to ask if the rent the landlord quotes is in dollars or in pesos.

17) If you improve the property, will your landlord increase the rent as a result? Are you allowed to make any changes?

18) If there is a maid or gardener, who is responsible for paying him or her? Are you able to assign tasks to them? What if his or her work doesn't satisfy you?

Mexican Landlord Response

Do not be surprised, after presenting your demands, if the landlord yells the Spanish equivalent of, “Don’t let the screen door hit you where the dog should have bit you.”

You will hear this after witnessing the most riotous Mexican laughter you have ever heard in your life. The landlord may chase you out of the house or set the hounds on you.

Here is the deal. The potential Mexican Landlord will not allow a Gringo—especially an American one—to tell him such-and-such will have to be fixed before you move into his property. The reason is simple. He will be able to find any number of sucker Americans, Canadians, Europeans, or Orientals who will gladly fork over whatever excessively inflated price he asks for the place. These people will fork over their deposit at the end of the lease when the landlord claims they broke the electricity.

That is how it is and you cannot change it. When it comes to almost everything in Mexico, not one shred of your understanding of ethics or logic applies—ever.

Since there will always be some Gringo ready to cave in to a Mexican Landlord’s aberrant behavior, that behavior will always be reinforced and will never change.

An American’s understanding of the ethics of honesty and fair play does not seem to apply when it comes to a Mexican’s dealings with Gringos.

It just doesn’t.

If you encounter resistance to this, take your business elsewhere. Take a bad reaction as a sign you need to find other housing. Don’t mess with someone who is inflexible.

As I said in a previous chapter, if you are looking at one of the traditional American gringo enclaves like Guadalajara, Puerto Vallarta, or San Miguel de Allende for a potential spot to begin your expatriation adventure, you will find you have little difficulty in securing rental housing. In these areas, English is so widely spoken you can find a place without having to speak one word of Spanish.

However, in recent years, more and more Americans have wanted to find the Real or Traditional Mexico in which to live. I would like to say it is because they all want to become fluent in the language so they can experience the genuine Mexican culture, one untainted by commercialization. Unfortunately, I would be wrong.

More and more, in the areas where gringos have traditionally lived, the real estate prices have been driven into orbit, making it impossible for the middle-class American to live. San Miguel de Allende is a good example.

San Miguel de Allende used to be a “steal”. You could move there, buy a house for almost nothing, and live “high-on-the-hog.” However, “used to” is now the operative word. We are encountering San Miguel Expats who are fleeing the city because of the impossible-to-pay cost of real estate and living. And, they are moving to the city in which my wife and I live—Guanajuato.

The prices here are still affordable. That, I fear, will soon change as more and more would-be San Miguel de Allende-type gringos move into our area.

Right now, prices in Guanajuato are what they were in San Miguel 15 to 20 years ago. That is changing. So, why are gringos beginning to move to Guanajuato? Cheap real estate and a cheaper cost of living are the motives. Fortunately, if you want to find a place to live here, you will have to learn some Spanish.

The most popular way, and really the best way, to find rental housing is through a publication called, The Chopper. This is a weekly newspaper in which most, if not all, landlords list their rental properties. The Chopper often has listings from other cities in the surrounding area. You might want to check the areas of Central Mexico in which you are interested for similar weekly publications.

You can find this publication in the many newspaper kiosks or grocery stores. You can also obtain a subscription to the paper by calling them at 473-732-0109 or e-mailing them at choppergto@prodigy.net.mx. However, you will have to speak Spanish to do this.

If you contact a potential landlord, you will have to negotiate your transaction in Spanish. We know of expats who have done this and arranged to wire or send deposits by mail to secure a property, sight unseen. This is risky, full of potential problems, but you do need a place to land if you do not want to stay in a hotel for weeks while looking for housing.

Another way to secure housing is to come here, stay in a hotel, and simply walk the streets. Knock on doors, ask at neighborhood stores, or ask people on the street. Unlike the United States, where knocking on the doors of people’s homes might get you shot, you can do it in Mexico. Someone, somewhere, will know of someone who has a house or apartment for rent.

Remember, you can also call on the local private Spanish schools. They always have a list of potential houses and apartments in which to place their students. They may share their housing list with you. Be willing to pay a little something for this privilege.

Another idea is to come to language school as a student. The school will find temporary housing for you while you take some classes. You not only can take some Spanish classes, but also take some time each day to explore the area and to look for a place to live. Also, the people with whom the school places you will be an invaluable source of the who, what, when, where, how, and why of finding rental housing in the area you’ve chosen to live.

The reality is the only thing that Mexico shares in common with the United States is its border. You have to get it into your head that Mexico is not America. This will be the mantra that will save you from many headaches, especially when you encounter the vast differences in renting a place in which to live Mexico.

Unfortunately, there are landlords in Guanajuato who do not possess ethics. Or, I should say, they have the terrible ethic that God put American gringos on the earth to make them richer. You have to watch for things such as a landlord wiring outside security lights into the meter where you rent and not telling you about it. If I were you, I would avoid a woman who offers some rather nice properties on Privada de los Arquitectos. This is located in Barrio Pastita. She is not honest and will think nothing of ripping you off.

Another area to avoid is the Barrio Puquero. This neighborhood is loud to the point of being unlivable. I cannot imagine an American, unless he or she is deaf, being able to tolerate this area.

The area known as Los Balcones is another one to avoid. There are some nice houses up there but it tends to be a little dicey in the safety department. Though physical assaults are rare in Guanajuato as a whole, thievery is very, very common. I would not live there for that reason. No matter what precautions you take, the thieves will figure out a way to break into your house and rob you.

Do not sit anywhere in this city with your laptop. First of all, do not sit on a chair outside your apartment or house and work. That is like having a neon sign that points to your house saying, “I have something for you to steal.”

Also, a favorite game the thieves play happens when you are in the park working on your laptop. Someone will spill mustard, or something else, on you and then make a pretense of being very sorry. He will just happen to have a roll of paper towels there with him and will try to clean you up. While this scam is going on, his partner will grab your laptop and you will not know it happened until it’s too late.

The Barrio known as San Javier is one of the newest areas and is very nice. The houses are “modern Mexican”. It is where some of the more “well-to-do” Mexicans live. There are rentals there, but you will probably pay dearly. Another problem is that it is far, far, and then even farther from everything. The bus is hard to catch. There are few buses that run in that neighborhood.

Everyone we know who lives there has cars—most houses have parking. If you don’t mind lots of walking, then you might want to check this area out. There seems to be a bigger police presence there than most other neighborhoods. I have heard rumors the residents pay a “tip” to the police to do a little extra foot patrolling.

BOOKS ON MOVING TO GUANAJUATO

Highly Recommend , September 8, 2006 By Bruce Drake (Washington, DC) Former Editor with NPR News As someone who has visited Mexico several times as I struggle with my study of Spanish, and who is thinking of moving there, I found this book to be far superior to the general run of guides on the expatriate life or retiring in Mexico. Some of the others of this genre just lack the ring of authenticity, or seemed to be aimed at people with a lot of bucks who are headed for a gated community or an expensive house in Cabo San Lucas. But the Bowers' book has that ring of authenticity and is squarely aimed at the (for lack of a better cliche) "average Joe" who is looking for a life that is different and/or better and needs down-to-earth practical advice on how an American can make this transition.

To date myself, the Bowers' reporting reminds me of the usefulness of a Travel Forum I used to frequent on one of the pioneer online services, CompuServe, where I got the best travel ideas and advice ever from the many participants who gave their firsthand reports, and to whom you could pose the kinds of questions that you don't see answered in newspaper travel sections or guidebooks.

So, if this is the kind of information you are looking for, buy this book as well as the Bowers' book on Guanajuato.