Peso killing our rental dollar. Any solution?

raghu813 · Post by **raghu813** » Mon Mar 16, 2009 1:13 am

Maybe we are just overlooking something.

We own a condo in the Hotel Zone which we are renting out long term and being paid in pesos. As all of you know, we are taking quite a beating now when we change them into dollars.

Does anybody have any ideas on how to cure this awful situation?

Thanks for any help you come up with.

Mike

chico98 · Post by **chico98** » Mon Mar 16, 2009 2:26 am

me too

charlieb · Post by **charlieb** » Mon Mar 16, 2009 6:25 am

Have your rent paid to you in dollars? Figure the amount at the old rate of 10pesos/1dollar, so if(for example) you USED to charge 500pesos(50dollars) NOW charge 50dollars(14pesos x 50dollars=700pesos) OR raise your rent to 700pesos. Chuck...

katnsocal · Post by **katnsocal** » Mon Mar 16, 2009 8:16 am

Changing from Pesos to U.S. Dollars has always been a killer, its just worse now. Don't know how you can get around it.

travelbug_jp · Post by **travelbug_jp** » Mon Mar 16, 2009 1:59 pm

If the agreement was that you wold be paid in pesos then that is the reality. Perhaps a discussion with the renter about the hit you are taking would garner a solution.

Joyce

ronald · Post by **ronald** » Tue Mar 17, 2009 4:59 am

Or sell the place and have no further concerns.

kcowan · Post by **kcowan** » Tue Mar 17, 2009 2:19 pm

raghu813 wrote:Maybe we are just overlooking something.

We own a condo in the Hotel Zone which we are renting out long term and being paid in pesos. As all of you know, we are taking quite a beating now when we change them into dollars.

Does anybody have any ideas on how to cure this awful situation?

Thanks for any help you come up with.

Mike

Most people renting understand that there might be an annual rent increase when times are tough. Start to raise it in manageable chunks asap. Bu don't get greedy. Your cost base must bear some relationship with the local economy, e.g. use the HOA fee increase and the rising cost of maids as justification.

chico98 · Post by **chico98** » Tue Mar 17, 2009 9:01 pm

when there is a salary increase
the rent goes up
the same percentage as the salary
also base on other rentals in same area
apparently nobody is raising
supply and demand

chico

ellen · Post by **ellen** » Wed Mar 18, 2009 12:36 am

raghu813 wrote:Maybe we are just overlooking something.

We own a condo in the Hotel Zone which we are renting out long term and being paid in pesos. As all of you know, we are taking quite a beating now when we change them into dollars.

Does anybody have any ideas on how to cure this awful situation?

Thanks for any help you come up with.

Mike

We just quote the rent in US$ but perhaps that's not as easy for long-term renters. It works for us for vacationers, though.

BUFFETT 06 · Post by **BUFFETT 06** » Fri Mar 20, 2009 3:12 am

part of owning in Mexico.

pdxbuff · Post by **pdxbuff** » Sat Mar 21, 2009 8:50 am

glacierroasters · Post by **glacierroasters** » Sun Mar 22, 2009 2:11 pm

Hold the PESO's until the exchange is better (yes..this may be years)

Consider it an investment,

it will probably out perform your Stock or your savings account, and U$D are going to deflate the next year or so big time.

Jimbo · Post by **Jimbo** » Sun Mar 22, 2009 9:31 pm

tell me....if the rate fell to, say 9 pesos to the dollar would you then ask the renter to pay less?

kcowan · Post by **kcowan** » Mon Mar 23, 2009 3:45 pm

glacierroasters wrote:Hold the PESO's until the exchange is better (yes..this may be years).

Friends who rent their condo use the rental income to pay for their costs of vacationing when they are in their own condo.

kingofmen · Post by **kingofmen** » Mon Mar 23, 2009 3:58 pm

Jimbo wrote:tell me....if the rate fell to, say 9 pesos to the dollar would you then ask the renter to pay less?

good point

Peso killing our rental dollar. Any solution?

Re: Peso killing our rental dollar. Any solution?

Re: Peso killing our rental dollar. Any solution?

The usual heavy duty response from Chico