What Is a Security Hold (“Apartado”) and Why Is It Required When Renting a Property?

Here we explain how the security hold works to reserve a rental property and why it is an essential step in the leasing process.

When a rental offer is accepted, the next step to secure the property is the security hold (apartado).

The security hold is a common and necessary practice in the formal rental market in Mexico City. Its main purpose is to reserve the property, stop further marketing, and allow the legal screening and contract process to move forward with certainty for all parties involved.

What Is a Security Hold?

A security hold is an amount of money paid to reserve a rental property while the legal lease insurance (póliza jurídica) investigation is conducted and the lease agreement is prepared.

Its amount:

• Is proportional to the monthly rent
• In some cases, may be equivalent to the security deposit
• Depends on each transaction and on what the property owner has requested

The exact amount of the security hold must be confirmed by the real estate advisor handling the transaction.

The security hold is not an extra charge or a penalty. It is a mechanism to formalize the tenant’s genuine intention to rent the property.

Who Receives the Security Hold?

The security hold is paid directly to the property owner, not to the real estate brokerage.

It is not a business strategy for either the owner or the brokerage to profit from this payment. Its sole purpose is to reserve the property and suspend further promotion.

For this reason, it is essential to:

• Work with a formal, established real estate brokerage
• Avoid transfers to unidentified third parties or informal intermediaries
• Trust companies with a proven track record and clear processes

At Mundo Urbano, we operate with transparent practices, defined procedures, and over 20 years of experience in residential leasing, helping reduce risk and prevent fraud.

How Is the Security Hold Applied?

The security hold is credited toward the security deposit or applied as agreed in the transaction.

All remaining payments are made on the day the lease agreement is signed and the property is delivered.

Practical Example

Let’s assume the following:

• Monthly rent: $20,000
• Agreed security deposit: 1 month

In this case:

• Security hold: $10,000
• On the signing date:
• Remaining security deposit balance: $10,000
• First month’s rent: $20,000

Total due on signing day: $30,000

If the deposit were two months, or if advance rent payments had been agreed, the amounts would change accordingly. This example is for illustration purposes only.

When Is the Security Hold Refunded?

The security hold is refunded only in one specific scenario:

When the legal lease insurance investigation is not approved, after all reasonable alternatives to obtain approval have been exhausted.
(See the article What Do I Need to Rent? and What Does the Legal Policy Review?)

In this case, the property cannot be leased under those conditions, and the security hold is returned.

When Is the Security Hold Forfeited?

The security hold is forfeited in the following situations:

• Tenant withdrawal: If the tenant decides to cancel the transaction for personal reasons, a change of plans, or any reason not attributable to the legal policy or the property owner, the security hold is not refunded.
• Failure to submit documents on time: If the tenant does not provide the required documentation promptly to move forward with the investigation.

Important: a security hold represents a real commitment.

Once the security hold is paid, the property is removed from the market and showings with other interested parties are cancelled. If you later decide not to proceed for personal reasons, you must understand that the security hold is lost because the owner has already incurred an opportunity cost: every day the property is not marketed is a day it is not rented, and that translates into lost income.

In real estate, time is money.

At the moment the security hold is paid:

• The property stops being marketed
• Visits and negotiations with other prospects are suspended

There is a brief and reasonable period to submit the requested documentation and advance the legal review.

If an extended period passes without complete documentation, the owner loses real rental opportunities and suffers a direct financial impact. In such cases, marketing may resume and the security hold is forfeited.

This is why, although the security hold reserves the property, it is strongly recommended to sign the lease agreement as soon as possible. The contract and the payment of rent and deposits are what ultimately close the deal.

Why Is the Security Hold So Important?

Because the security hold:

• Formalizes the tenant’s real intention to rent
• Protects the owner from opportunity costs
• Allows the legal review and contract process to move forward securely
• Prevents the property from being rented to another interested party

Not providing a security hold means the property remains available and there is a real risk of losing it.

In practice, refusing to place a security hold is often interpreted as a lack of genuine interest.

If you truly want a property, you reserve it.

Recommendations Before Paying a Security Hold

Before delivering a security hold, make sure that:

• Your offer has already been accepted by the owner
• You are ready to submit all required documentation
• You trust the real estate brokerage handling the transaction
• You clearly understand the security hold amount and how it will be applied
• You are aware of the cancellation conditions

A well-understood security hold helps avoid conflicts later.

Conclusion

The security hold is neither an abuse nor an unnecessary risk when handled correctly.

It is an essential tool to reserve a property, provide certainty to the owner, and allow the leasing process to move forward in an orderly manner.

Working with a professional and transparent real estate brokerage ensures that this step is safe, clear, and fair for all parties involved.