Vacation Rental Fraud on the Rise in Puerto Vallarta – How to Avoid Becoming a Victim

Puerto Vallarta, Jalisco – The Mexican Association of Real Estate Professionals (AMPI) has issued a warning regarding the alarming increase in real estate fraud throughout the country. While the majority of these fraudulent activities are concentrated in central Mexico, the state of Jalisco, including the popular tourist destination of Puerto Vallarta, is significantly affected. The tourist areas of Puerto Vallarta have become hotspots for such crimes, particularly in the vacation rental sector.

Increase in Real Estate Fraud

According to AMPI, there are approximately 10,000 real estate agents operating in Jalisco, most of whom work informally. This informality contributes to the proliferation of fraudulent activities. AMPI strongly advises the public to exercise caution and seek out reputable and certified companies to avoid falling victim to these scams.

Fraudulent real estate agents, often posing as legitimate advisors, are swindling individuals by taking advance payments and disappearing. This rise in fraud is corroborated by data from the Executive Secretariat of the National Public Security System (SESNSP), which reported that Jalisco broke its record for real estate fraud in 2023, with 10,266 investigation files opened.

Legislative and Preventive Measures

In response to the surge in fraud, authorities are working to educate the public about the tactics used by these fraudulent agents. A significant step in combating this issue was the enactment of a new law last year that regulates the Provision of Real Estate Services in the State of Jalisco. This law aims to bring order to the sector and curb fraudulent practices.

The law mandates the creation of a state registry for professional real estate service providers, agencies, and associations. These entities are required to undergo certification processes and are regulated by the Secretariat of Economic Development. This registry is intended to provide a reliable resource for citizens seeking real estate services, ensuring they are dealing with legitimate and trained professionals.

AMPI’s Recommendations

AMPI representatives have been actively raising awareness about these frauds, particularly during events like the XIII International Tourism Summit held in Puerto Vallarta. They have provided several recommendations for individuals looking to rent vacation properties:

1. Beware of Unreasonably Low Prices: If a rental price seems too good to be true, it likely is. Fraudsters often use attractive prices to lure victims.
2. Verify Previous Tenants: A good number of previous tenants and positive reviews are indicators of a legitimate rental.
3. Request Full Details: Whether dealing with an agency or an individual, always ask for comprehensive contact information, including address, landline number, and website.
4. Direct Contact: If dealing with an individual, request the owner’s details and attempt to contact them directly.
5. Communication Red Flags: Be cautious of advertisers who avoid phone conversations and only provide email addresses.
6. Avoid Advance Payments: Do not pay in advance, especially if the advertiser insists on quick payment.
7. Save Correspondence: Keep records of all messages and information exchanged with the advertiser.
8. Suspicious Emails: Be wary of emails requesting personal data or passwords.

The rise in vacation rental fraud in Puerto Vallarta and the broader Jalisco region is a concerning trend. However, with increased awareness and adherence to the recommendations provided by AMPI and other authorities, individuals can protect themselves from falling victim to these scams. As the region continues to develop its regulatory framework, it is hoped that these measures will significantly reduce the incidence of real estate fraud and restore confidence in the real estate market.

For further information and assistance, potential renters are encouraged to consult the state registry of certified real estate professionals and report any suspicious activities to the appropriate authorities. By staying informed and vigilant, the community can work together to combat real estate fraud and ensure a safer environment for all.