What are Short-Term Rental (Airbnb, VRBO) Regulations in Ecatepec, Mexico?

Short-term rentals, such as those listed on platforms like Airbnb and VRBO, have become increasingly popular in Ecatepec, Mexico. However, hosts must navigate a complex set of regulations to operate legally. This article will explore the current rules and upcoming changes for short-term rentals in Ecatepec.

Starting a Short-Term Rental Business in Ecatepec

To start a short-term rental business in Ecatepec, hosts must comply with several regulations outlined by the local government. These include:

• Registering the property: Hosts must register their short-term rental properties with the Ecatepec Tourism Ministry (Sectur) and provide rental data twice a year.
• Limiting the number of properties: Hosts are permitted to register no more than three properties, apartments, or rooms as short-term rentals.
• Notifying neighbors: Hosts must inform their neighbors about their intention to rent out a property.
• Paying taxes: Hotels and online accommodation platforms are required to pay annual taxes of 3.5% and 5%, respectively.

It's important to note that Ecatepec, along with other neighborhoods like Juárez, Roma, and Condesa, has been significantly impacted by the sharp increase in short-term rental listings in recent years. This has led to concerns about displacement, gentrification, and new economic dynamics.

The local government is actively working to regulate the short-term rental market to address these issues. In December 2023, the Mexico City government proposed new legislation requiring hosts to register their listings on an online database and limit the proliferation of rentals in the capital.

These proposed changes reflect the city's commitment to creating a fair and sustainable environment for residents, visitors, and businesses. By familiarizing themselves with current regulations and staying informed about upcoming changes, hosts can navigate the licensing process smoothly and contribute to Ecatepec's thriving, responsible short-term rental industry.

Short-Term Rental Licensing Requirement in Ecatepec

Hosts must obtain a license from the local government to operate and launch a short-term rental in Ecatepec, Mexico. The licensing process ensures that rental properties meet safety standards and comply with local regulations.

To apply for a short-term rental license in Ecatepec, hosts must provide the following information and documents:

1. Personal identification: A valid government-issued ID, such as a passport or voter registration card (INE).
2. Proof of property ownership or permission: A copy of the property title or a notarized letter from the property owner granting permission to use the property as a short-term rental.
3. Property description: Details about the rental property, including the address, number of bedrooms, and maximum occupancy.
4. Safety certification: A licensed engineer or architect certificate confirming that the property meets local safety standards, including fire safety and building codes.
5. Tax registration: Proof of registration with the Mexican tax authority (SAT) and a tax ID number (RFC).

Once the application is submitted, the local government will review the documents and may conduct an inspection of the property to ensure compliance with safety and zoning regulations. If approved, the host will receive a short-term rental license, which must be prominently displayed on the rental property.

It's important to note that short-term rental licenses in Ecatepec are valid for one year and must be renewed annually. Hosts must also collect and remit a 3% lodging tax on all short-term rental transactions.

Failure to obtain a short-term rental license or comply with local regulations can result in fines and penalties. In some cases, the local government may even shut down non-compliant rental properties.

As the short-term rental market continues to grow in Ecatepec, the local government is working to strike a balance between supporting the tourism industry and protecting the interests of residents. By requiring licenses and enforcing regulations, the city aims to ensure that short-term rentals are safe, well-managed, and beneficial to the community as a whole.

Required Documents for Ecatepec Short-Term Rentals

Hosts must provide several key documents to demonstrate compliance with local regulations when applying for a short-term rental permit in Ecatepec, Mexico. The following documents are typically required:

Proof of Identity:

A valid government-issued ID, such as a passport or voter registration card (INE).

Proof of Property Ownership or Permission:

A copy of the property title or a notarized letter from the property owner granting permission to use the property as a short-term rental.

Proof of Residency:

Documents issued by the Mexican authorities, such as the FMM form, if you are a foreigner.

Business Registration:

1. A New Mexico Tax ID number (also called a CRS number) is required for the short-term rental application process.
2. Hosts must register their business with the local authorities and provide the registration number.

Safety Certification:

1. A certification from the property owner or operator stating that a detailed fire inspection has been performed on the premises.
2. The certification must confirm the presence of ABC-type fire extinguishers at all points of egress, emergency escape access in every sleeping room, and a posted floor diagram with emergency contact numbers.

Occupancy and Vehicle Information:

Hosts must provide the maximum number of occupants and vehicles that the dwelling unit can accommodate.

Contact Information:

The name, address, email address, and contact telephone numbers (including a 24-hour emergency contact number) of the owner and operator of the short-term rental.

Neighbor Notification:

Hosts must certify that they have notified all contiguous property owners that the subject property is to be used for short-term rental.

Third-Party Authorization (if applicable):

If a third-party vendor or property management company is handling the short-term rental on behalf of the owner, proper authorization must be provided.

It's important to note that these requirements may vary slightly depending on the specific municipality within Ecatepec. Hosts should contact the local City Clerk's Office or Planning & Zoning Department to confirm the exact documents needed for their short-term rental application.

By gathering and submitting all necessary documentation, short-term rental hosts in Ecatepec demonstrate their commitment to operating legally and responsibly. This helps ensure the safety of guests, the well-being of the community, and the sustainable growth of the local tourism industry.

Ecatepec Short-Term Rental Taxes

As the short-term rental market continues to grow in Ecatepec, Mexico, it's crucial for hosts to understand their tax obligations. Income earned from renting out a property on booking platforms like Airbnb and VRBO is subject to federal, state, and local taxes.

At the federal level, the Mexican tax authority (SAT) considers short-term rental income taxable income. Hosts must register with the SAT and obtain a tax ID number (RFC). They are required to file monthly tax returns and pay income tax on their rental earnings. The tax rate varies depending on the host's total income, ranging from 1.92% to 35%.

In addition to federal income tax, Ecatepec hosts must collect and remit a 3% lodging tax on all short-term rental transactions. This tax is imposed by the State of Mexico and is used to fund tourism promotion and infrastructure projects.

At the local level, the Ecatepec government has implemented a 5% tax on short-term rental platforms like Airbnb and VRBO. This tax is collected by the platforms and remitted to the city on behalf of the hosts. This tax aims to help regulate the short-term rental market and ensure that hosts contribute to the local economy.

Hosts must keep accurate records of their rental income and expenses to comply with these tax obligations. They should also consult with a tax professional familiar with the short-term rental industry to ensure they file their taxes correctly and take advantage of any available deductions.

It's worth noting that failure to comply with tax regulations can result in significant penalties and fines. In some cases, the Mexican tax authority may even seize a host's property if they are found to be evading taxes.

As the regulatory landscape for short-term rentals continues to evolve in Ecatepec, hosts must stay informed about their tax obligations and work to maintain compliance. By doing so, they can contribute to the local economy, support the growth of the tourism industry, and ensure the long-term sustainability of their short-term rental businesses.

Ecatepec Wide Short-Term Rental Rules

In addition to the licensing requirements and tax obligations, short-term rental hosts in Ecatepec, Mexico, must comply with city-wide rules and regulations. These rules are designed to ensure the safety and well-being of guests, protect the rights of neighbors, and preserve the character of residential neighborhoods.

1. Zoning Restrictions: Short-term rentals are only permitted in certain zoning districts within Ecatepec. Hosts must ensure that their property is located in an area that allows for short-term rental use. In some cases, a special use permit may be required.
2. Occupancy Limits: The maximum number of guests allowed in a short-term rental is determined by the size of the property and the number of bedrooms. In Ecatepec, the limit is typically two guests per bedroom plus an additional two guests. For example, a two-bedroom property could accommodate up to six guests.
3. Parking Restrictions: Hosts must provide off-street parking for their guests. The number of parking spaces required depends on the size of the property and the number of guests. Hosts may need to obtain a parking permit from the city in some cases.
4. Noise and Nuisance Regulations: Short-term rental guests must comply with the city's noise ordinance and avoid creating a nuisance for neighbors. Hosts are responsible for ensuring that their guests do not disturb the peace and quiet of the neighborhood.
5. Safety Requirements: All short-term rentals must meet the city's safety standards, including fire safety, building codes, and health regulations. Hosts must provide working smoke detectors, carbon monoxide detectors, and fire extinguishers on their properties.
6. Insurance Requirements: Hosts are required to maintain liability insurance for their short-term rental properties. The minimum insurance coverage amount varies depending on the size of the property and the number of guests.
7. Signage Restrictions: Hosts are not permitted to display any exterior signage advertising their short-term rental properties. This includes signs, banners, and flags.
8. Trash and Recycling: Hosts must provide adequate trash and recycling receptacles for their guests and ensure that waste is properly disposed of in accordance with the city's regulations.
9. Permit Display: Hosts must prominently display their short-term rental permit on the property and provide guests with a copy of the city's short-term rental rules and regulations.

Failure to comply with these rules and regulations can result in fines, penalties, and even the revocation of a host's short-term rental permit. The city of Ecatepec has a dedicated enforcement team that regularly inspects short-term rental properties and responds to complaints from neighbors.

As the short-term rental industry continues to grow in Ecatepec, the city is working to balance the needs of hosts, guests, and residents. By complying with these rules and regulations, hosts can help ensure the industry's long-term sustainability and contribute to the economic and social well-being of the community.

Does Ecatepec Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts and real estate investors on platforms like Reddit and Bigger Pockets, Ecatepec appears to be less Airbnb-friendly compared to other cities in Mexico. The city has implemented strict regulations for short-term rentals and is known for its rigorous enforcement efforts.

Many hosts report that Ecatepec's licensing process is more complex and time-consuming than in other cities. The city requires hosts to submit a wide range of documents, including proof of property ownership, safety certifications, and neighbor notifications. Some hosts have even had their applications denied due to minor technicalities or zoning restrictions.

Once a short-term rental is licensed, hosts must comply with a long list of rules and regulations, including occupancy limits, parking restrictions, and noise ordinances. The city has a dedicated enforcement team that regularly inspects properties and responds to complaints from neighbors. Hosts who violate these rules can face significant fines and even have their licenses revoked.

As a result of these strict regulations and enforcement efforts, many hosts have chosen to operate their short-term rentals illegally in Ecatepec. They argue that the city's rules are overly burdensome and make it difficult to run a profitable business. However, these hosts risk significant penalties if they are caught operating without a license.

Despite the challenges, some hosts have found ways to operate successful short-term rentals in Ecatepec. They emphasize the importance of working closely with the city to navigate the licensing process and ensure compliance with all rules and regulations. They also recommend being proactive in communicating with neighbors and addressing their concerns.

Overall, while Ecatepec may not be as Airbnb-friendly as other cities in Mexico, it is still possible to operate a successful short-term rental business in the city. Hosts who are willing to put in the time and effort to comply with the city's regulations and work collaboratively with officials and neighbors can find opportunities for growth and profitability. However, those who choose to operate illegally do so at their own risk and may face significant consequences if caught.

How to Start a Short-Term Rental Business in Ecatepec

Starting an Airbnb rental business in Ecatepec, Mexico, can be a rewarding venture, but it requires careful planning and compliance with local regulations. Here are the steps to get started:

1. Research the market: Analyze Ecatepec's demand for short-term rentals and identify potential neighborhoods or areas that attract tourists or business travelers. Consider factors such as proximity to attractions, public transportation, and amenities.
2. Choose a suitable property: Decide whether you want to use your own property or invest in a new one. Ensure that the property is located in a zoning district that allows for short-term rental use and meets the city's safety and occupancy requirements.
3. Register your business: Register your short-term rental business with the Mexican tax authority (SAT) and obtain a tax ID number (RFC). You will also need to register with the local municipality and obtain a business license.
4. Obtain necessary permits and certifications: Apply for a short-term rental permit from the city of Ecatepec. This process requires submitting various documents, including proof of property ownership, safety certifications, and neighbor notifications. Depending on the specifics of your property, you may also need to obtain additional permits, such as a parking permit or a special use permit.
5. Prepare your property:Furnish and decorate your rental property to make it appealing to guests. Ensure that the property meets all safety requirements, including working smoke detectors, carbon monoxide detectors, and fire extinguishers. Provide adequate trash and recycling receptacles and ensure that the property is clean and well-maintained.
6. Create a listing:Create a detailed and engaging listing on popular short-term rental platforms like Airbnb and VRBO. Include high-quality photos, a comprehensive description of your property and its amenities, and information about the surrounding area.
7. Set your pricing and house rules: Determine your nightly rates based on factors such as the size of your property, its location, and the amenities you offer. Set clear house rules regarding occupancy limits, noise levels, and parking restrictions to ensure your guests respect your property and your neighbors.
8. Manage your bookings and communicate with guests:Respond promptly to booking inquiries and guest questions. Provide clear check-in and check-out instructions and be available to address any issues that may arise during a guest's stay.
9. Comply with tax obligations: Keep accurate rental income and expense records. File monthly tax returns with the SAT and pay income tax on your rental earnings. Collect and remit the 3% lodging tax on all short-term rental transactions and ensure that your rental platform collects and remits the 5% platform tax.
10. Stay informed and adapt to changes: Stay up-to-date on any changes to Ecatepec's short-term rental regulations and tax laws. Join local host communities and attend industry events to network with other hosts and learn best practices. Be willing to adapt your business strategy as needed to ensure compliance and profitability.

By following these steps and prioritizing compliance with local regulations, you can build a successful short-term rental business in Ecatepec. While the city's strict rules and enforcement efforts may present challenges, hosts who are willing to put in the time and effort can find opportunities for growth and success in this dynamic market.

Who to Contact in Ecatepec about Short-Term Rental Regulations and Zoning?

When navigating the complex world of short-term rental regulations and zoning in Ecatepec, Mexico, knowing who to contact for accurate information and guidance is essential. Here are some key resources and contacts:

Ecatepec Municipal Government - Urban Development and Zoning Department
Phone: +52 55 5836 3600
Email: desarrollourbano@ecatepec.gob.mx
Address: Av. Revolución s/n, San Cristóbal Centro, 55000 Ecatepec de Morelos, México

The Urban Development and Zoning Department is responsible for issuing short-term rental permits and ensuring compliance with zoning regulations. They can provide information on the specific requirements for obtaining a permit and answer questions about zoning restrictions and land use policies.

Ecatepec Municipal Government - Tax Administration Department
Phone: +52 55 5116 3400
Email: recaudacion@ecatepec.gob.mx
Address: Av. Revolución s/n, San Cristóbal Centro, 55000 Ecatepec de Morelos, México

The Tax Administration Department is responsible for collecting the 3% lodging tax on short-term rental transactions. They can provide information on registering for the tax, filing monthly returns, and making payments.

Mexican Tax Authority (SAT)
Phone: +52 55 627 22 728
Website: www.sat.gob.mx

The SAT is responsible for administering federal taxes in Mexico, including income tax on short-term rental earnings. They can provide information on registering for a tax ID number (RFC), filing monthly tax returns, and paying income tax.

Airbnb and VRBO
Airbnb: https://www.airbnb.com/help/contact_us
VRBO: https://help.vrbo.com/

As the largest short-term rental platforms operating in Ecatepec, Airbnb, and VRBO can provide valuable resources and support for hosts. They offer information on local regulations, tax collection, and best practices for managing a successful short-term rental business.

Ecatepec Short-Term Rental Host Community
Facebook Group: https://www.facebook.com/groups/ecatepecstrhosts/

Joining a local host community can be a great way to connect with other short-term rental operators in Ecatepec, share experiences, and stay informed about changes to local regulations. The Ecatepec Short-Term Rental Host Community on Facebook is an active group where hosts can ask questions, share tips, and support one another.

By proactively reaching out to these contacts and staying engaged with the local short-term rental community, hosts in Ecatepec can ensure they have the most up-to-date information on regulations and best practices. Building strong relationships with these resources can also help hosts navigate any challenges that may arise and contribute to a thriving, responsible short-term rental industry in the city.

What Do Airbnb Hosts in Ecatepec on Reddit and Bigger Pockets Think about Local Regulations?

Discussions about Ecatepec's short-term rental regulations on platforms like Reddit and Bigger Pockets reveal a range of perspectives among Airbnb hosts and real estate investors. Here are some notable examples:

"Navigating Ecatepec's STR Regulations" - Reddit thread

In this thread, hosts discuss the challenges of complying with Ecatepec's strict short-term rental regulations. Many express frustration with the complex licensing process and the city's rigorous enforcement efforts. However, some hosts also share tips and strategies for successfully navigating the regulatory landscape and building positive relationships with city officials and neighbors.

"Investing in Ecatepec Airbnb Properties" - Bigger Pockets forum post

This post explores the potential risks and rewards of investing in short-term rental properties in Ecatepec. While some investors see opportunities for high occupancy rates and strong returns, others caution against the city's strict regulations and the potential for costly fines and legal issues. The discussion highlights the importance of thorough due diligence and working closely with local experts when considering an investment in Ecatepec.

"Ecatepec's New STR Rules: A Host's Perspective" - Medium article

In this opinion piece, a seasoned Ecatepec Airbnb host shares their experiences adapting to the city's evolving short-term rental regulations. The author argues that while the rules can be burdensome, they are necessary to ensure the industry's long-term sustainability and protect residents' interests. The article emphasizes the importance of proactive communication, community engagement, and a willingness to adapt to change.

"Lessons Learned from Operating an STR in Ecatepec" - YouTube video

This video features an interview with a successful Airbnb host in Ecatepec who shares their tips and lessons learned from operating a short-term rental in the city. The host stresses the importance of understanding and complying with local regulations, building positive relationships with neighbors and city officials, and providing exceptional guest experiences.

"Ecatepec STR Hosts Unite" - Facebook group

This private Facebook group serves as a forum for Ecatepec Airbnb hosts to connect, share experiences, and support one another. Members discuss a wide range of topics, including regulatory compliance, marketing strategies, and best practices for managing a successful short-term rental. The group also serves as a platform for hosts to organize and advocate for their interests in the face of changing regulations.

These examples demonstrate the diverse perspectives and experiences of Airbnb hosts in Ecatepec as they navigate the city's complex short-term rental regulations. While many hosts express frustration with the strict rules and enforcement efforts, others see opportunities for success through proactive compliance, community engagement, and a commitment to providing high-quality guest experiences. As the regulatory landscape continues to evolve, it will be important for hosts to stay informed, adapt to change, and work collaboratively to ensure the long-term sustainability of the short-term rental industry in Ecatepec.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.