Short-Term Rentals vs. Traditional Leasing: The Current Regulation of Airbnb-Style Platforms in Mexico City

Over the last decade, short-term rental platforms have significantly reshaped the real estate landscape of Mexico City. Neighborhoods such as Roma Norte, Condesa and Juárez have become hotspots for international travelers, digital nomads, and foreign investors seeking high-yield rental properties.

However, the rapid expansion of short-term rentals—especially through platforms like Airbnb—has triggered regulatory changes aimed at balancing tourism growth with housing availability for residents.

For foreign investors evaluating opportunities in Mexico City’s property market, understanding this regulatory environment is essential.

The Rise of Short-Term Rentals in Central Mexico City

Before the pandemic, neighborhoods such as Roma and Condesa were already popular among tourists. But after 2020, the rise of remote work and digital nomadism accelerated demand for temporary accommodation.

These neighborhoods offer several advantages that make them attractive for short-term rentals:

• walkable streets and historic architecture

• strong restaurant and café culture

• proximity to cultural attractions and parks

• established international communities

As a result, many apartments previously used for long-term housing were converted into short-term tourist rentals, creating a highly profitable niche for property owners and investors.

Is Airbnb Legal in Mexico City?

Yes. Short-term rentals are legal in Mexico City, but since 2024 they are subject to a specific regulatory framework.

Local authorities introduced reforms to regulate digital lodging platforms and prevent excessive conversion of residential housing into tourist accommodations. (TheLatinvestor)

The new rules apply to platforms such as:

• Airbnb

• Booking.com

and to all property owners offering temporary tourist stays.

Key Regulations Foreign Investors Should Know

1. Mandatory Host Registry

Property owners must register in the official Host Registry (Padrón de Anfitriones) operated by Mexico City’s tourism authorities.

Each property listed for short-term rental must be registered individually, and the registration must be renewed periodically. (TheLatinvestor)

2. 180-Day Annual Rental Limit

One of the most significant changes is the occupancy cap.

Properties listed on short-term rental platforms may only be rented for up to 180 nights per year, equivalent to 50% of the calendar year. (Mexico News Daily)

If a property exceeds this limit:

• the host may lose the registration

• the property may be temporarily banned from operating

This measure was introduced to prevent entire residential buildings from being converted into tourist accommodations.

3. Limits on Number of Properties

While the law allows individuals to register multiple units, operating more than three properties may trigger additional regulatory requirements similar to those applied to commercial hospitality businesses. (Trujillo Abogados)

For foreign investors managing larger portfolios, this may require a different legal structure or commercial registration.

4. Reporting and Compliance Obligations

Hosts must also:

• report occupancy data to authorities periodically

• display their registration number on listing platforms

• provide accurate property information and pricing

• comply with local tax obligations

Failure to comply may result in fines of up to about MXN $21,000 and removal from the registry. (TheLatinvestor)

Why the Regulation Was Introduced

The reforms were largely driven by concerns about housing affordability and gentrification in central neighborhoods.

As short-term rentals expanded, many residents argued that converting apartments into tourist accommodation reduced housing supply and pushed rental prices higher. (The Mexico City Post)

The new legal framework aims to balance three competing priorities:

• tourism growth

• property investment

• housing availability for residents

Short-Term vs. Long-Term Rentals: Investor Considerations

For foreign investors evaluating Mexico City real estate, the choice between short-term and traditional rentals depends on several factors.

Short-term rental advantages

• higher nightly revenue potential

• flexible pricing during peak tourism seasons

• strong demand in central neighborhoods

Challenges under the new rules

• 180-night rental limit

• regulatory compliance requirements

• potential neighborhood restrictions

Long-term rental advantages

• stable monthly income

• fewer regulatory constraints

• lower operational management

Many investors are now adopting hybrid strategies, combining short-term rentals during high-demand periods with mid-term rentals for digital nomads or expatriates.

The Outlook for Foreign Investors

Despite tighter regulation, Mexico City remains one of the most attractive real estate markets in Latin America for foreign buyers.

Demand for centrally located apartments in neighborhoods like Roma, Condesa, and Juárez remains strong due to:

• international tourism

• the growth of remote work

• the city’s cultural and economic importance

For investors willing to navigate the regulatory framework, the market continues to offer compelling opportunities.