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salto_jorge

Sep 20, 2013, 7:25 AM

Post #1 of 6 (508 views)

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When it it Renting vs House-sitter taking over my loan payments

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In the near future I will be away from my home for extended periods. As such I do not want to leave my place unattended. I was contacted by a friends, friend who knows my situation would would like to watch it plus take over my house payments when they are there.

Are there legal issues with housesitter making my payments to stay there while everything else remains in my name ? The payments would be deposited in a US bank where the loan originated.

In Mexico what is considered renting, anytime funds are exchanged ?

Deciding what to do.

Aaron+

Sep 20, 2013, 9:04 AM

Post #2 of 6 (471 views)

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Re: [salto_jorge] When it it Renting vs House-sitter taking over my loan payments

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A "house sitter" who makes full or partial payments certainly looks like a renter. You are receiving rent, in effect, no? According to Hacienda's SAT -- Mexico's version of the IRS -- you would need to obtain a tax number (RFC) and pay taxes on your rental income; see
http://www.sat.gob.mx/...fisc_p/131_8209.html (a link that works today).

Your transactions would seem to be "under the radar", with payments going back and forth in $USD. Perhaps no one in SAT would be the wiser -- if you want to take that mild risk. However, the income is generated in Mexico, and legally subject to taxation, less any eligible deductions.

Otherwise, you may want to make an appointment/consulation with SAT (no charge) or pay a Mexican attorney for advice, just to be sure.

If you "own" the property through a fideicomiso rather than directly, you may want to check its terms to see if there are any clauses relating to use as a rental property.

Aaron+

Sep 20, 2013, 9:09 AM

Post #3 of 6 (468 views)

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Re: [salto_jorge] When it it Renting vs House-sitter taking over my loan payments

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Besides any tax issues regarding your situation, you may also want to consider how you would be leaving yourself open to losses from maluse of your property by your friend/friends, particularly if you will not have a rental contract with them. Do you really know your "sitters" so well that you can be sure they would stand behind any damages they would appear to have caused? For example, if they forget to shut a window or door, and rains or robbers enter, would they be responsible for your losses? Just some thoughts. That said, it is generally better to have real estate occupied by reliable persons rather than unattended.

salto_jorge

Sep 23, 2013, 7:00 AM

Post #4 of 6 (313 views)

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Re: [Aaron+] When it it Renting vs House-sitter taking over my loan payments

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It is always better to have someone at the house.
Just because the house is in a coto behind a gate does not mean that neighbors will not enter the home.
My neighbots know I have to leave, hard to keep quite.
One of my neighbors wants to rent the home another I would not trust for anything.

Are notarios up on these matters ?

Appreciated

Aaron+

Sep 23, 2013, 7:45 AM

Post #5 of 6 (298 views)

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Re: [salto_jorge] When it it Renting vs House-sitter taking over my loan payments

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Notarios are the ones to go to for property sales. Anyone who uses a lawyer who is not a notario for such purposes is going through an intermediate who will have to use the notario. In your case, a rental issue, a notario might well be up on rental issues, but normally a lawyer that handles general real estate issues could draft a rental agreement that would be as good as that lawyer would be competent.

As for tax issues, I'd prefer to go to SAT and say, here is something I am thinking of doing, what are the Mexican tax consequences, and do I need an RFC. (If your Spanish is not up to the occasion, go with someone who can translate.) You can make an appointment online.

Most folks do not have home insurance here in Mexico. If you do, check the terms to see if having a renter inside would affect/invaldidate some or all of the coverage. My guess (read, guess) is that a pure sitter, not paying anything towards rent, would be ok for the insurance, but perhaps you would have to advise the company in advance. Check the terms or, second best, talk with your Mexican agent.

Good luck.

salto_jorge

Sep 23, 2013, 8:04 AM

Post #6 of 6 (292 views)

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Re: [Aaron+] When it it Renting vs House-sitter taking over my loan payments

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Checking www.sat.gob.mx , it looks like tax payments from renting need to be paid in a timely manner and that would not be possable.

Does anyone know of a property management company ?

Plus what do others do, who rent their places for a season or a room in their house ( just do it under the table ) on a short term basis ?

My home owners insurance policy does not mention renters or renting.

(This post was edited by salto_jorge on Sep 23, 2013, 8:05 AM)