TIJUANA (Border Report) — It’s one of the worst-kept secrets in the Tijuana-San Diego region when it comes to landing a rental property south of the border: pay with U.S. dollars.
But with Mexico’s currency gaining value against the U.S. greenbacks, landlords in Tijuana are suddenly “preferring” tenants pay in pesos.
According to Mexico News Daily, the peso is at its strongest level against the dollar since 2018.
Bloomberg is listing the peso’s value at under 18 per dollar, just a few months ago it was 20 per dollar.
The peso is expected to remain strong at least through the summer.
Baja California Gov. Marina del Pilar Ávila recently tweeted: “The Mexican super peso is continuing to gain strength” and that “the economic policy of the federal government is yielding excellent results for the benefit of all.”
This confidence is reflected in the rental market in Tijuana, as more and more landlords are advertising rents in pesos.
A current posting on Tijuana’s Craigslist advertises in Spanish: “beautiful house ready to be rented located inside a private neighborhood with 24-hour security seven days a week, house is spacious with great natural light… rent $35,000 MXN per month.”
“This trend now is due to the peso gaining territory against the green bills,” said Gustavo Chacon, a board member with Baja California’s Real Estate Professionals Council. “Landlords are looking for ways to make it easier and more profitable on themselves.”
One of Chacon’s fellow board members said accepting pesos has become a simpler way to do business.
“It’s easier to transfer or deposit pesos than doing it in dollars due to all the banking restrictions,” said Marco Antonio Preciado Rodríguez. “There’s no harm with making contracts expecting dollars, but you’re putting yourself at a disadvantage with the dollar’s market fluctuations.”
Preciado did say in tourist areas, such as Airbnb properties, those rental units continue to be listed in dollars for the most part.