Authored by the expert who managed and guided the team behind the Mexico Property Pack
Yes, the analysis of Mexico City's property market is included in our pack
Property managers in Mexico City typically charge 8-12% of monthly rental income for long-term rentals, with upfront fees around $500 USD and various additional costs that can impact your investment returns. Professional management often delivers higher occupancy rates and faster tenant placement, but the net return difference between hiring a manager and self-managing can range from 10-30% after all fees are considered.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico, based on reliable facts and data, not opinions or rumors.
Property managers in Mexico City charge 8-12% for long-term rentals and 15-25% for short-term vacation management, with setup fees around $500 USD.
Professional management typically achieves 80-90% occupancy rates compared to 65-75% for self-managed properties, with faster tenant placement and lower turnover rates.
| Management Aspect | With Property Manager | Self-Managed |
|---|---|---|
| Monthly Fee | 8-12% of rental income | $0 |
| Setup Costs | $500 USD one-time | Variable DIY costs |
| Occupancy Rate | 80-90% | 65-75% |
| Vacancy Fill Time | 2-4 weeks | 4-8+ weeks |
| Maintenance Response | 24-48 hours | Variable |
| Tenant Screening | Professional & consistent | Owner dependent |
| Net Return Impact | -10% to -30% after fees | Higher profit, more effort |
What's the typical percentage property managers in Mexico City charge on monthly rental income?
Property managers in Mexico City typically charge 8-12% of monthly rental income for long-term residential properties.
This percentage can vary based on the property type, location within the city, and services included in the management package. Premium neighborhoods like Polanco or Roma Norte might see rates at the higher end of this range.
For short-term vacation rentals or Airbnb properties, management fees increase significantly to 15-25% of gross rental income due to the additional workload involved in guest communication, cleaning coordination, and higher turnover rates.
As of September 2025, most established property management companies in Mexico City maintain competitive rates within this 8-12% range for traditional rentals, making it a standard industry benchmark.
It's something we develop in our Mexico property pack.
How much do property managers usually ask for in upfront or setup fees?
Most property managers in Mexico City charge a one-time setup fee of approximately $500 USD or the peso equivalent.
This upfront fee typically covers initial property photography, listing creation on rental platforms, digital lock installation, property inventory documentation, and initial marketing setup.
Some premium management companies may charge higher setup fees ranging from $700-1,000 USD, especially if they provide additional services like professional staging, extensive photography, or comprehensive property condition reports.
The setup fee is usually non-refundable and due before the property manager begins actively marketing your rental property.
What extra costs should I expect, like advertising, tenant screening, or maintenance markups?
Beyond the monthly management fee, property managers in Mexico City typically charge several additional costs that can significantly impact your returns.
- Cleaning fees: MXN 300-600 per tenant turnover
- Tenant screening fees: Often charged separately for background checks and credit reports
- Lease renewal fees: Usually equivalent to 25-50% of one month's rent
- Bill payment services: Up to 4% of monthly revenue for utilities management
- Maintenance markups: 10-20% markup on vendor services and repairs
Advertising costs for listing your property on platforms like Inmuebles24 or Vivanuncios are sometimes included in the setup fee, but premium listings or additional marketing may incur extra charges.
These additional fees can add 2-5% to your total management costs, so it's crucial to review all potential charges in your management contract before signing.
How do property managers in Mexico City usually handle rent collection, and do they charge for late payment follow-ups?
Property managers in Mexico City typically collect rent through bank transfers (SPEI) or direct deposit, with some offering online payment portals for tenant convenience.
Most managers include basic rent collection as part of their standard fee, but charge additional fees for late payment follow-ups, typically ranging from MXN 200-500 per follow-up attempt.
The standard rent collection process involves sending payment reminders 3-5 days before the due date, followed by late notices and potential legal action coordination if payments become significantly overdue.
Some property managers offer guaranteed rent programs where they pay you regardless of tenant payment status, but these services come with premium fees of 15-20% of rental income.
Don't lose money on your property in Mexico City
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What's the average occupancy rate investors achieve with vs. without a property manager in Mexico City?
Properties managed by professional companies in Mexico City typically achieve occupancy rates of 80-90%, compared to 65-75% for self-managed properties.
This higher occupancy rate results from professional managers' ability to market properties more effectively, respond quickly to inquiries, and maintain better tenant relationships through consistent service.
The occupancy advantage is particularly pronounced in competitive neighborhoods like Condesa, Roma, or Polanco, where professional presentation and rapid response times are crucial for attracting quality tenants.
Self-managed properties often experience longer vacancy periods due to limited marketing reach, slower response times to potential tenants, and less professional property presentation.
How quickly do property managers here typically fill a vacant unit compared to self-managing landlords?
Professional property managers in Mexico City typically fill vacant units within 2-4 weeks, compared to 4-8+ weeks for self-managing landlords.
This faster placement results from established marketing networks, professional photography, optimized listing descriptions, and dedicated staff to handle inquiries and schedule viewings promptly.
Property managers often have databases of pre-qualified tenants and relationships with corporate relocation services, significantly reducing time-to-lease for quality properties.
Self-managing landlords typically struggle with consistent marketing efforts, limited platform access, and time constraints that delay tenant placement and extend costly vacancy periods.
What's the average tenant turnover rate in Mexico City when using a property manager versus self-management?
Properties with professional management in Mexico City experience significantly lower tenant turnover rates, with lease renewal rates often exceeding 70-80%.
Self-managed properties typically see higher turnover due to inconsistent maintenance response, limited tenant communication, and less professional handling of tenant concerns and requests.
Professional managers proactively address tenant issues, provide consistent communication channels, and often offer lease renewal incentives that encourage longer tenancy periods.
The reduced turnover with professional management translates to fewer vacancy periods, lower turnover costs, and more stable rental income throughout the year.
How do property managers typically screen tenants, and is their process stricter than what landlords could do themselves?
Property managers in Mexico City employ comprehensive tenant screening processes that are typically more thorough and consistent than individual landlord efforts.
| Screening Element | Professional Manager Process | Typical Self-Managed Process |
|---|---|---|
| Income Verification | 3+ months pay stubs, employment verification | Basic income claims, limited verification |
| Credit Check | Buró de Crédito reports, financial history | Rarely conducted |
| Reference Verification | Previous landlords, employers contacted | Basic reference collection |
| Documentation Review | ID, proof of residence, bank statements | Basic ID verification |
| Background Checks | Criminal background verification | Usually not performed |
| Income Requirements | 3-4x monthly rent minimum | Variable standards |
| Guarantor Requirements | Consistent application of guarantor policies | Inconsistent enforcement |
What kind of maintenance response times and vendor pricing can I expect from property managers in Mexico City?
Professional property managers in Mexico City typically provide 24-48 hour response times for maintenance requests, with emergency issues addressed within 24 hours.
Managers maintain networks of vetted contractors and vendors, often securing better pricing through volume discounts, though they may apply 10-20% markups on vendor services.
Routine maintenance like plumbing repairs, electrical work, or appliance servicing is usually coordinated efficiently, with managers handling vendor communication, scheduling, and quality oversight.
Emergency services such as water leaks, electrical failures, or security issues receive immediate attention, often with 24/7 on-call support that self-managing landlords struggle to provide consistently.
It's something we develop in our Mexico property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Do property managers provide detailed monthly financial reports, and how transparent are they about all fees?
Reputable property managers in Mexico City provide detailed monthly financial statements that include rent collected, expenses paid, maintenance costs, and management fees deducted.
Quality reports typically itemize all transactions, provide copies of receipts for major expenses, and clearly show the net amount due to the property owner.
Transparency varies significantly between management companies, with established firms offering comprehensive online portals where owners can access real-time financial data and transaction history.
Some managers may obscure maintenance markups or additional fees in their reporting, making it essential to demand detailed cost breakdowns and fee transparency in your management contract.
How do property managers here usually handle legal issues like evictions, and what are the associated costs?
Property managers in Mexico City coordinate the legal eviction process, which typically takes 2-7 weeks under Mexican rental law, depending on case complexity and tenant cooperation.
The eviction process involves formal notices, legal documentation, and potential court proceedings, with managers often charging additional fees of $200-500 USD for legal coordination beyond their standard management fee.
Managers typically work with established legal firms specializing in landlord-tenant law, ensuring proper procedure compliance and reducing the risk of costly legal errors.
Legal costs including court fees, attorney fees, and formal notice service can range from $500-2,000 USD depending on case complexity, with these costs typically passed through to the property owner.
What's the realistic net return difference between hiring a property manager in Mexico City and self-managing, after all fees are paid?
After accounting for all management fees and additional costs, hiring a property manager in Mexico City typically reduces net returns by 10-30% compared to self-management.
| Scenario | Professional Management | Self-Management |
|---|---|---|
| Monthly Gross Rent | MXN 20,000 | MXN 20,000 |
| Management Fee (10%) | -MXN 2,000 | MXN 0 |
| Occupancy Rate | 85% (MXN 17,000) | 70% (MXN 14,000) |
| Additional Fees/Year | -MXN 12,000 | -MXN 6,000 |
| Annual Net Income | MXN 180,000 | MXN 162,000 |
| Time Investment | Minimal | 10-15 hours/month |
The financial calculation often favors professional management when factoring in higher occupancy rates, faster tenant placement, and reduced vacancy losses, despite the management fees.
It's something we develop in our Mexico property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property management in Mexico City offers clear advantages for investors seeking professional tenant placement, higher occupancy rates, and reduced time commitment, despite the 8-12% management fees and additional costs.
The decision ultimately depends on your investment goals, available time, and comfort level with landlord responsibilities, as professional management can improve net returns through better occupancy despite higher fees.
Sources
- Naya Homes - Property Management Company Costs in Mexico
- Pacaso - Property Manager Charges
- Awning - Airbnb Management Fees
- The LatinVestor - Setting Up Short-Term Rentals in Mexico City
- Belong Home - Hidden Property Manager Fees
- Mexperience - Total Cost of Property Ownership
- Mexperience - Managing Long-Term Property Rentals in Mexico
- MexLife - Landlord and Tenant Laws
- Exit Advisor - Property Management in Mexico
- InMexico - Property Manager vs Self-Management