Bill seeks to limit landlords’ ability to increase rent to the rate of inflation

(archive)

December 16^th, 2015 (ICR News) A bill recently presented during a special session in the Legislative Assembly would limit annual rent increases for residential leases to the rate of inflation.

Currently, landlords who rent properties in colones are allowed to raise a tenant’s rent by 15 percent each year.

Under the proposal, rent could only be increased by a percentage equal to or less than the cumulative inflation rate of the previous twelve months as calculated by the National Institute of Statistics and Census (INEC)’s Consumer Price Index.  Should inflation be higher than 12 percent, the Housing Mortage Bank (Banhvi) would define the increase.

If the rent is priced in a foreign currency, such as US Dollars, rent could not be increased for the entire term of the contract, which for residential leases is already the case.

Costa Rica’s inflation rate so far this year has actually been negative, with accumulated inflation of -0.98 percent as of November.

The bill seems to have been received positively by lawmakers.