Renting in
Costa Rica
Whether you are renting
for month, a year or
more, or are a tenant or
landlord, there are
myths and misconception
about the rental laws
and how they are
applied. The following
is not intended to be a
legal opinion, but
rather a layman's
understanding of how
rentals work in Costa
Rica.
There is no distinction
between a rental for an
apartment, a house, a
piece of land. The "Ley de
arrendamientos urbanos y
suburbanos" covers them
all.
What is for sure is that
renting a house or
apartment, the most
common type of
transaction for most
foreigners coming to
live in Costa Rica, can
turn into a nightmare,
both for the landlord or
tenant, for those not
aware of the rental
laws.
Most disputes between
landlord and tenant rise
from that lack of
knowledge, the knowledge
and obligations of each
of the party to the
contract and could end
up costing one or both
time and money as the
argument is settled with
lawyers and through the
judicial system.
Many landlords are of
the opinion that if a
tenant does not pay rent
or fulfill the
obligations of the
contract he or she can
simply evict the tenant.
The right to eviction is
that of the landlord,
but not without due
process. And that takes
time. Lots of time.
On the other hand
tenants believe that it
is the obligation of the
landlord to maintain the
property and effect
repairs. Some landlords
take pride in their
properties and keep them
well maintained and
effect repairs
immediately. But, that
is not the case of
landlords.
In one recent case, a
landlord decided that
she had had enough with
her "inquilino" (tenant)
and decided, with the
help of six friends,
break in the door of a
family that was renting
her house.
Not only did the woman
did not follow the
established process in
law, but she is now
facing criminal charges
of forcible entry,
usurpation and damages.
To avoid problems, both
landlord and tenant
should put everything in
writing, the term of the
lease or rent, the
amount to be paid - in
dollars or colones - the
full description and
location of the property
being rented and the use
of the property.
All rentals or leases in
Costa Rica are for a
minimum of three years.
We say minimum because
the rental laws call for
a three month notice
prior to the end of the
term for the tenant to
vacate the property or
the landlord wanting the
property back. If the
proper or no notice is
given, the rental is
automatically renewed
for another period.
Rentals less than three
years occur when a
tenant vacates the
property and there is no
penalty for terminating
early. In effect, a
rental, say for 12
months, is actually a
three year rental with
the right of the tenant
to leave early and
without facing a
penalty.
Other clauses in the
rental contract can
specify if pets are
permitted or not. Simply
getting the landlord's
verbal approval is not
sufficient, the same as
the landlord cannot
refuse a tenant not to
have pets if the
prohibition is not in
the contract.
Paying rent and
increases in rent is
another problem that
arises from time to
time.
The rental laws allow
the tenant up to seven
days late to pay rent
without incurring any
penalty or being in
breach of contract. In
other words, if the rent
is due on the first, the
landlord can only start
demanding payment on the
8th day.
Rental contracts in
dollars have to be
specific to any
increases. On the other
hand, all contracts in
colones are subject to a
15% annual increase
unless the contract
calls for a lesser
amount.
When it come to repairs,
the landlord has the
clear obligation to
effect all repairs, save
if they are for cosmetic
purposes, like painting.
In other words, in the
case of structural
damage to the property
and if not caused by the
tenant's action or
negligence, the landlord
has the obligation to
make the repairs.
The process is spelled
out in law. The tenant
must notify the landlord
of the damage. The
landlord has 10 days to
effect the urgent
damage, failing which,
the tenant can make the
repairs and deduct it
from the rent.
Major or urgent repairs
can cover things like a
leaking roof, broken
plumbing, electrical
service, etc. Cosmetic
or decorative changes
are not covered under
the landlord's
responsibility.
At the same token, the
tenant cannot paint the
property, re-tile the
floor, change the
kitchen cabinets, etc,
without the landlord's
express approval. If the
tenant does make changes
without the written
approval, he or she
could face costs at the
end of the term as the
property is required to
be handed back to the
landlord in the same
condition it was rented,
less wear and tear.
So, what happens if a
tenant, who has been
paying regularly,
keeping the property in
good condition and
generally has had a good
relationship with the
landlord, suddenly stops
paying rent. Can the
landlord take immediate
action?
The answer yes. But.
The law calls for a
process, a process that
can be time consuming
and costly if a lawyer
is used. The landlord
can only take legal
action if there is
failure to pay rent and
not because the landlord
wants the property back
for other reasons, like
a tenant who will pay
more, renting to a
family member or for
personal use.
The process is to notify
the tenant and then
resort to an eviction
order, detailing the
specifics of the
situation and using the
rental contract as the
basis for the failure.
A judge has to sign off
on the eviction and
then, most importantly,
the eviction order can
only be carried out by
the Fuerza Pública
(police), meaning the
landlord cannot enter
the property until the
police have carried out
the eviction order and
removed the tenant, a
process that can take
months, up to a year or
more, in some
complicated cases.
All landlords demand a
deposit, usually equal
to one month's rent. It
is important to be clear
that the security
deposit is not
applicable to the last
month's rent, but rather
to damages incurred by
the landlord when the
tenant vacates the
property.
The landlord then has 30
days to return the
deposit, less any costs
incurred, like repairs,
non payment of utility
bills, etc., unless the
rental contract
specifies different. In
reality, the deposit is
seldom returned to the
tenant.
When renting in Costa
Rica - be it from a
tenant's or landlord's
point of view -
everything has to be
spelled out in the
rental contract - who is
to do what, when, how,
etc - and give the
proper notices required
by both parties to
terminate the contract.
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