**Rent Payments in Dollars Not Mandatory for Tijuana Rentals**
Tanya Montalva, the president of the Baja California Council of Professional Real Estate Agents, has announced that rent payments in dollars are voluntary between landlords and tenants in Tijuana. This comes after property owners have shifted to charging rents in pesos due to the fluctuating dollar rate in 2024.
Montalva pointed out that the decision to charge in dollars is influenced by Tijuana’s geographical proximity to the United States, which increases the demand for housing by both American citizens and local residents who work in the U.S. “Our geographic location provides an economic advantage for clients and property owners wishing to rent, and contracts reflect the desires of both parties,” Montalva explained.
Tenants have the option to negotiate their contracts to pay in either dollars or pesos, depending on the exchange rate at the time of payment. Montalva emphasized, “It is not mandatory to pay in dollars, even if the landlord prefers to list rents in dollars.”
This year, it has been noted that approximately 20% of property owners have switched to collecting rent in pesos due to significant fluctuations in the exchange rate. Despite this change, around 60% to 70% of rental agreements are still settled in dollars, compared to 80% last year.
### Additional Information on Tijuana’s Rental Market
Recent reports highlight the effect of the dollar exchange rate on the rental market in Tijuana. Experts predict that the dollar may stabilize around 20 pesos by the year’s end. This prediction comes alongside the observation that variations in the dollar-peso rate heavily influence rental agreements, with many landlords opting to peg rent to the more stable currency of the U.S. dollar.
With the transition in governmental powers, there is an expectation that the dollar might stabilize, potentially impacting rental agreements favorably. In recent developments, the restaurant industry in Tijuana has also anticipated a boost in sales due to the rise in the dollar, indicating broader economic implications.
Stay tuned to TJGringo.com for further updates and in-depth analyses on the Tijuana rental market and other local news.