I did not post newsletters 8-11. The information is now outdated so we will start back with #12 and continue posting from here. Thanks for your understanding. 

The State of Baja Sur Rentals.
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Not much has changed for this busy busy rental season yet.  We are still seeing high rental rates, but without a ton of pre-bookings.  Most people are waiting to make reservations until it is time to travel with the uncertainty of the world. We are hopeful this trend continues through the summer to keep rentals high.  That being said, we may see a dip as well.  I will continue to go into the Airbnb accounts to make small changes and/or do discounts depending on your goals to keep homes rented as needed.  
We are also seeing a large uptick in inventory in our areas of Baja Sur.  As a company, we are getting multiple inquiries a week for property and rental management for both private homes and new condos.  It seems EVERY single person that comes for a visit is also ready to purchase land to build or purchase a condo as a rental.  This impacts current owners in multiple ways.  First, your investment is solid! Prices for land and construction continue to increase as demand is high.  Second, you may see a downtick in rentals as inventory increases. The positive is the airport has expanded and people keep coming.  Also, I imagine some of the rentals will slowly start to disappear off the market. Now that taxes are being remitted at the current rate, I forecast some owners may decide the wear and tear, and the overall hassle of the rental is not worth the small percentage they are able to keep. (I’ll speak more to the tax point below.) What we do know… this season was very strong! 
and COVID in Baja and Tu Casa...
Well….. COVID??? There are still a few restaurants or stores that ask you to mask (OXXO), but otherwise we are seeing little to no restrictions. It is time to let our guard down a little and enjoy the beach I suppose. :) 
Communication.
We are working hard to streamline our lines of communication so nothing is missed. 
GUEST SERVICES PHONE NUMBER. (970) 331-3798
We now have a dedicated number for guests to contact us at any time.  We will no longer be giving guests our personal phone numbers. We are in the process of changing over all the information on Airbnb and in the guidebooks to this new number. We are calling it, Tu Casa 24 HOUR guest line. Also, please keep this number for your information as well, just in case there is an emergency and you are not able to get in touch with one of us.  This will be the phone number that someone is always “ON CALL” with if Alex or I cannot be reached.
MEXICAN LINE.  (612) 205-8037
We also have a Mexican business number that is used as our office phone.  We keep this phone on during office hours, or when Alex or I are out of phone service (Danny or Meghan will have it). Please keep this number for your records as well, just in case there is an emergency.  You can also give this phone number to any vendors you may use that need to be in contact with a Spanish speaker. 
OWNERS.    Alex: (203) 892-5133 or Rachel: (720) 354-0022
Please continue to contact us as normal. You should have both of our numbers and use them freely through text, call, or whatsapp. We will work hard to let you know if we will be out of service for any amount of time, but if you do have an emergency, another staff member will always have our 24 hour line on, so you can always contact us on that line. 

Airbnb Process.
In the theme of streamlining our communication, we are working hard to utilize the Airbnb system as much as possible.  In the past we requested emails from each guest.  We would then send out a separate email through our tucasa gmail address to ensure they received the maps and location.  The downside to this, we were giving ourselves multiple extra steps and opening up yet another avenue of communication for guest questions to get lost.  MOVING FORWARD. We are in the process of uploading and inputting all directions and check-in information into the Airbnb application and website. The app has a special ‘check-in’ information area where you can upload pictures and add notes.  There is also a directions area to put the specific directions and google map link.  We are adding the wifi log-in information into the app as well. Finally, we are updating the Airbnb guidebooks with local maps and restaurants. We are changing our initial Airbnb response for guests to check these areas of Airbnb prior to their arrival, and reach out with any questions.  Once a house’s check-in information is properly inputted, we will no longer be requesting email addresses or sending out the check-in emails.  We have found out that the check-in information does not need data, so one can look at the directions without having a connection. We will still provide the same information in the guidebooks at the home, with any additional information you ask us to provide for the guests. 
To note: we have noticed the mobile app and the website do not always sync their information. We are in contact with Airbnb about this issue.  In the meantime, we are making sure that the information appears correctly in the mobile app as this is what people will use for arrival.  
Please look at your Airbnb app on your phone. Scroll to the bottom of your listing. Click on ‘Check-in instructions’, click on Preview.  To note: Not all of the homes are completed, but should be very soon. 
Taxes.
Airbnb (and all other rental platforms) ARE automatically remitting taxes from rentals. 
NEW 2022 TAX HOLDINGS:     25% - Income Tax       16% - VAT Tax          3% - Occupancy Tax*
*The Occupancy Tax is not new and has always been taken out. 
If you obtain your residency and then apply for a RFC - personal Mexican tax ID, you will have a deduction in tax withholdings, however, there are still other steps that have costs.
Obtaining your RFC is possible and you DO NOT need a Mexican Corporation. You DO need to apply for temporary or permanent residency in Mexico. Then, (I think) you must begin this process in your home country then will need to spend a certain amount of time in Mexico to go through the paperwork (in the month-two month range). My understanding is there is a time allotment to stay here to properly fulfill these needs. You will have to hire an accountant and/or lawyer to help you with this process. You will then need a Mexican bank account and attach your Airbnb account to this bank. The money you make will go into your Mexican account. You will retain an accountant (+/-$100 per month) in Mexico as the taxes are filed and paid on a monthly basis. You will then be able to make dedications on expenses, especially the VAT and Income taxes.  
One other option.
Mexican Corporation. There is cost up front and you can put your home/land under your corporation.  There are also costs associated but just like getting your RFC through residency, a corporation gives you a multitude of other benefits.  I recommend consulting a lawyer and accountant if you want to start this process.
Business News- NEW INFORMATION!
Our Mexican bank account and STRIPE are not set up yet as we’d hoped.  We are still status quo for paying (ZELLE, VENMO) but are pushing hard for this to come to fruition.  We will keep you updated. 
As a Mexican corporation we are required to pay Value Added Taxes to Mexico on all our money's moving into our account. Thus far we have been able to get away with having the majority of our clients pay us into the states, but we are no longer able to do this.  We must remain in compliance per the Mexican government. 
What does this mean? This means we are in the process of opening a new bank account that works with the system STRIPE so all our money is directed into Mexico.  As soon as this is open (1 - 2 months), we will invoice typically and have you pay us through this platform. We will send a link for payments to make it very simple and easy. The good news… you will be able to pay us with a credit card or other payment means.  We will be charging Value Added Tax on invoices moving forward to stay in compliance starting as soon as this account is open.
Back to good news… if you do apply for an RFC, the 16% that you are charged by Tu Casa is then your deduction from the money you would owe from income from Airbnb. With an RFC, you’d be charged 30% income on your taxes (if you make over 15k usd or more per year) - minus 8% already withheld from Airbnb and minus 16% already paid to Tu Casa on our bill. You can also make deductions on any home improvements with facturas (issued receipts). The downside is to take your pesos back to the states, you will have an exchange rate and fee. 
TAX CONCLUSION: From my understanding and in my opinion only…..
You are making approximately 10%-12% more each month if you obtain your RFC.  You will still have a few other fees (accounting) and the big one (money exchange from peso to USD/CAD) that are not accounted for in this percentage as they are variable, plus the initial fee of getting your residency (a few thousand dollars). All in all - your take from Airbnb without an RFC is about 43%.  Your take if you have an RFC is about 54%. This number is calculated after our fees, but does not take into account any US taxes, exchange rates, Airbnb fees (~4.5%), or accounting fees (US or MX). 
Please know I am NOT an accountant and I am only doing my best to understand. To get 100% correct information, we implore for you to reach out to an accountant to find out first hand.
COMMONLY ASKED QUESTIONS. 
Where do the taxes AIRBNB withholds go once taken out? - Absolutely zero idea.  Your guess is as good as mine, but I will assume Airbnb is working hard to stay in compliance with the Mexican government.
How does this impact our taxes in the US? - We honestly do not know. It is important you ask your accountant in the US as we do know you should claim this income - with or without an RFC. Without an RFC, my understanding is you can claim these taxes off as a deduction  as you should not be double taxed.  That is the extent of my knowledge. Please teach me more once you find out!! 
Adding Fees to Airbnb to cover costs.
We can now add an additional TAX to cover these costs through Airbnb if you have your RFC. We can add a rental management tax to Airbnb if you do or do not have an RFC . This is a good way to recover costs, but please know this could deter rental activity as other owners are eating the costs. Please let us know your thoughts on this option!
TCCPM MANAGEMENT FEES.
Please note, there is a very good chance we will need to slightly increase our fees in the future.  All expenses down here have increased - including gas, operating expenses, employee taxes and insurance, and general upkeep costs.  We will give notice if/when this does happen. It is not something we want to do, but may be necessary to keep our business running.  We feel lucky to have you as incredibly supportive and invaluable clients, and appreciate your understanding in this matter. ​

The State of Baja Sur and COVID.

Baja Sur is busy for the high season! Mexico seems to be one of the only places US tourists can still get away, so people are showing up in droves. Tourists are out and about, and luckily most are very respectful of social distancing and wearing masks. Restaurants are open and activities are happening across the peninsula, while taking COVID precautions. All in all, everyone in the area is enjoying themselves in the sunshine while sipping that margarita. People that have decided to visit are mainly the ones who have chosen to take the risk to travel so have a slightly different mentality than people with higher risks.

Beaches are all OPEN. We do see the crowds at Cerritos more spread out then a typical season. We have not seen the camping communities on beaches as we have seen in the past. We are not exactly sure if this is banned, or simply discouraged this year. The other thought is these were mainly Canadian communities, and Canada has made traveling much more difficult than the US, so many travelers may have decided to stay home.

COVID.

It is hard to know of COVID numbers exactly as it is still expensive to get tested, but not impossible. We have not heard of any major outbreaks in the community lately, and typically that news spreads quickly. That being said, the state has announced we may go from “orange” to “red” on their stoplight system, but no specifics are being said yet on timing.

There is also an article posted on Baja Insider stating that it is a law to wear a mask outside of your home. That being said, there is no enforcement of this except in restaurants. We have seen places temporarily shut down until they are meeting COVID guidelines.
http://www.bajainsider.com/article/face-coverings-now-law-bcs

Below is information on Mexico’s traffic light system. The color is reassessed every 2 weeks.
https://www.jdsupra.com/legalnews/mexico-s-covid-19-traffic-light-7584965/

You can also learn more and stay up to date on the 2 week changes:
https://ogletree.com/insights/red-orange-yellow-green-go-considerations-for-reopening-in-mexi co-social-educational-and-economic-activities/

Appreciation and Apologies.

We would first like to appreciate our incredible Tu Casa community for standing with us during our family emergency. We have been beyond touched and humbled by the support and love, plus the abundance of patience you have given us. This was of course 100% unforeseen, and you have allowed us to continue our business while doing what was need as a family. You are our lifeline. Thank you from the bottom of our hearts!

On that note - I apologize we have not had a newsletter since August! Sal’s injury was in September, so it makes sense August was the last one. Wow, it seems like a lifetime ago. I am getting back on the newsletter writing bandwagon. :)

We are happy to keep everyone updated on Caringbridge, and LOVE the comments of support and encouragement. We are VERY happy with Sal’s growth, and general miraculous recovery. I will not get into details here as I am trying to keep that for Caringbridge. We are hopeful Sal and I will be back in Mexico full time in the Spring. We will find out more details next week after the next round of images.
https://www.caringbridge.org/visit/saldamarco

Business News.

Alex just arrived back in Mexico today, January 7th. Nancy, Marta, Bibiana, and Meghan have been working their tails off while we were both gone. We have a few contracted employees you may have seen around, or heard us speak about, Luis and Chuy. Our team is growing and we could not be happier. We have so much appreciation for our intelligent, hardworking, problem solving, and committed Tu Casa team members.
We have hired Meghan Dohnal part time to help with invoicing and financial tracking. We are working hard to create systems that work with our growing business. If you see any mistakes on invoices, please let us know so we can quickly make changes. Thanks for your hard work team, and we appreciate all that is done to help grow Tu Casa.

Taxes.

Many questions have come in about taxes now that we finished awful 2020. I am sure many of you have seen the new regulations showing up in AIRBNB and VRBO emails.

After speaking with our accountant earlier this year - we learned about the new short term rental law that went into effect JUNE 2020. I will write my best description of what this means for you, but I do encourage you to do some research beyond what I am writing so you can make the best decisions for your rental property. There are some areas that I am still unsure about, so again - please continue to do research and update us if you learn more than we know!

Mexico has caught on to the income generated that is not being taxed through venues like Airbnb and VRBO/Homeaway. Airbnb and VRBO/Homeaway (and other sites) will now ask for your Mexican Tax ID. If you are able to provide your Mexican Tax ID then nothing will change. The government will assume you are already claiming your income and paying taxes accordingly. If you are not able to provide a Mexican Tax ID, the site will begin to take your taxes from your income. The breakdown looks like the following - Airbnb and VRBO already take 3% Hotel tax. This will not change. They will begin to take the 16% VAT tax. This is the basic sales tax for all of Mexico. Also, they will manually collect income tax. This is based on your monthly generated income: up to 5,000 pesos - 2%, up to 15,000 pesos - 3%, up to 35,000 pesos - 5%, over 35,000 pesos - 10%

● Let’s do some numbers:

• ○  $2,000 USD income on rentals in January
  • 3% - $60 (Hotel Tax - already deducted)
  • 16% - $320 (VAT Tax)
  • 10% - $200 (Income Tax)
• ○  Total: $580 taken for taxes plus your airbnb/vrbo fees.
• 
  

​This is significant. While it is frustrating, I also understand why the Gov’t is stepping in, and this is also happening in other areas of the world with short term rental sites. The issue is many of you pay taxes on this income in the states or Canada.

What you really need to know:
Airbnb is insinuating it is easy to obtain your Mexican tax ID - RFC number. This may be a good option for some, but there are positives and negatives for both getting this and not. If you have an RFC number, you are then committing to being a temporary or permanent resident of Mexico. This also means you will need to begin paying income taxes on your rental income - 30%. Although, you can also make deductions to reduce that rate. You will need to hire an accountant in Mexico that you pay monthly. You will also have to make payments to and from Mexican bank accounts for this money to be seen as taxed or as a deduction. If you are using your RFC number to send money to pay us, for example, you will have to pay the 16% VAT tax, which you later get back as your deduction. Confused yet??
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It isn’t a terrible process, but in my opinion, if you are not living in Mexico as your primary residence, plan to start a corporation to hold your Mexican home, or have another greater purpose for needing an RFC, we strongly recommend allowing the booking site to automatically deduct your taxes. You can then claim that deduction and income through your US tax claims, as you will already have paid in Mexico. All in all, if you do not have an RFC number, you are not breaking any Mexican laws, you are having your taxes automatically taken out of your earnings from the booking site. Please let us know if you have any questions, as we are happy to connect you with accountants and lawyers that have helped us.

The state of Baja Sur.

Baja has generally reopened! Tourists are starting to fly back in, and all is coming back to life… we think. 

Baja was set for reopening, but COVID-19 continues to inundate the world as we all know.  Beaches were open for a brief period, but then they shut back down last Friday.  We heard La Paz beaches were jammed packed, and Cerritos was similar but everyone was respecting social distancing here.  Cabo beaches stayed open for a short time after we shut, but that was also short lived. There is no word as to when all will reopen at this point. The airport continues to allow tourists. Hotels and larger restaurants are strictly following guidelines to wear masks, use hand sanitizer, and step on clorox mats (we are not totally sure how effective the mats are).  Smaller restaurants in Pescadero are not following such strict orders. Todos Santos in general is starting to buzz again, which is a great sign. Hopefully everyone stays healthy!

We have not seen much in rental activity unfortunately.  We had a small surge, but then it fell off again as cases began to rise in the states.  We are hoping people see the benefit of beautiful rural Mexico as their first post COVID destination.  Overall, construction is still happening, the area continues to grow, prices have not yet dropped, and there still seems to be a positive outlook.  This is the perfect area to escape from the city, and social distance.  Let’s think positively about the return of tourism and the end of COVID!  
Good News: We have seen a reduction in theft since business have started to reopen. There was also a slight surge as people became desperate, but once construction began again, all seemed to drop off.  That being said, we are still vigilant of your homes and have continued to make extra visits. 

Tu Casa’s next steps.

As we grow, we are working diligently to create better systems for our business efficiency. Much of this happens in real time as we don’t know we need a change until we are pulling our hair out from stress.  We then have to step back and reassess our needs. 

Cleaning:   We will no longer be billing for each home’s individual cleaning supplies. This was a monotonous and time consuming task of sifting through receipts for who received the extra large Cloro or the new mop.  Instead, we will now ensure our cleaners have all supplies for the homes they clean.  We will add an extra $10 per cleaning onto your bill from the cushion money provided from the renters.  Luckily you will no longer see the cleaning supplies on your materials charges with the 20% increase.  We will still individually buy toilet paper and paper towels for homes, as this is not included.  We will not change this amount until we have run through the cleaning supplies that are currently in your home.  At this point we will update your rental log to show the difference. I assure you, you will barely see a change, except for Alex’s happy face when he is no longer studying Walmart receipts! 

Staff: We officially hired Nancy as a FULL time Tu Casa staff member!!!!! She has now worked part time for many months, but she agreed to 100% be a part of the Tu Casa team. This is a very big deal as she has many talents. We have 100% trust in her ability and feel very lucky to have her.  

Meghan and Kevin are doing a great job with our Todos Santos branch! We all make a great team!

Home servicing:

With the hot season comes bugs and aircon use.  We highly recommend any home that has an AC to get serviced.  We are also seeing an uptick in scorpions and roaches due to the humidity and heat.  We are scheduling full days with Gio (bug mitigation) and Azia (Aircon servicing company) next week.  Please let us know if you would like to be on this schedule to get your AC serviced or your home sprayed.  
Note: Getting your air conditioner serviced is very important.  If a gecko is in the compressor, the unit will short when someone turns it on. We also find freon runs low, the hoses need to be blown out, or the units need cleaning. These are all simple fixes with a service, but can be detrimental if not taken care of regularly.

New chef and bartender team.

We have a new team serving locally sourced food and drinks in your home, for both owners and guests.  Chef Martha and Charlie will make food to order, create and serve drinks, and even clean after! This duo is incredible and comes highly recommended.  A client tonight is getting a chicken mole meal accompanied by watermelon mint margs and spicy cucumber margs. Is your mouth watering? The food is beyond delicious and very reasonable. Full menu coming soon.  Please spread the word!!

Taxes:
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Remember, Airbnb and VRBO have officially started taking taxes out of any account that does not have a legal Mexican tax ID. Once we start seeing bookings again, we may need to adjust pricing to reflect these additional charges.  

A few personal notes.
Please stay safe and healthy. We are all in this together, even if we are in different places in the world.  Stay positive and reach out if you need anything at all. We will keep you updated on your homes.  We are here for you! 

We will have t-shirts and hats available soon.