Is a LLC necessary when doing short term rentals?

Question

Hey ya all,

Is it necessary to do an LLC on a property you own in Tulum Mexico if you plan to do short term rental? Does anyone have management companies that they can recommend? My studio is suppose to be ready by the end of March, so many questions. Where is the best place to purchase, linen's rugs, a television dishes and art?

Any help would be greatly appreciated!

Denise Ausderau

Benjamin Canyon · Answer

Hey @Denise Ausderau - I have a property management company in Tulum. We only manage 3+ bedrooms but I'd be happy to advise on anything. If it's just one property, I recommend a trust/fideicomiso rather than a Mexican corporation. It's more straightforward and requires less maintenance. I've furnished all my units using Amazon and MercadoLibre. Hope that helps!

Denise Ausderau · Answer

Mike,

The new date for Menesse is July so hopefully you will have been to Tulum and might offer some insight on the Management Companies.

Thanks again,

Denise Ausderau

Sebastian Papworth · Answer

Hello @Denise Ausderau

I have worked with a couple of property managers in the area both as an investor and as a buyers agent. In my experience, there are always pros and cons about each one, there are multiple options in Tulum and PDC. I can share the ones we have used and know they are trustworthy. Will send you a DM.

Denise Ausderau · Answer

Thank you Mike,

Hope you had a successful trip. Is there anyone you can recommend from past visits? Or any tips on working with management companies? I very much doubt that Menesse will be completed by the end of March as they send progress reports but who knows?

Mike Lambert · Answer

Hello Denise,

No I had to go look at opportunities in the Puerto Vallarta area. I'll most likely be in Tulum in May.

Denise Ausderau · Answer

Hello Mike,

Have you been to Tulum in the past four weeks?

Denise

Denise Ausderau · Answer

Again Mike, thank you so very much! Your advice means the world to me

Mike Lambert · Answer

Denise,

Your property will be delivered at the end of March and I should put boots on the ground in the meantime. I check who is the best property manager every time I go so I should be able to give you the best possible recommendation by then.

Denise Ausderau · Answer

Mike, thank you so much! Do you have any management companies that you can recommend for Tulum?

Mike Lambert · Answer

@Denise Ausderau

A US LLC cannot directly own property in Tulum. You have to use a fideicomiso (bank trust) or a Mexican corporation for that purpose. You can always use an LLC in between you and the Mexican structure if your personal situation dictates.

You can use amazon.mx or go to Home Depot, Liverpool or Wal Mart for example. Alternatively, you can support the local craftsperson, who could tailor-made things for you. You can find art locally.

Good luck with your property!