By San José, Costa Rica — Navigating the complexities of rental agreements in Costa Rica requires a clear understanding of the legal framework governing landlord-tenant relationships. Law 7527, the General Law of Urban and Suburban Leases, serves as the cornerstone of this framework, ensuring a fair and equitable system for both property owners and renters.
This comprehensive legislation addresses a wide range of issues, from lease terms and conditions to the rights and responsibilities of each party. One of the key principles enshrined in Law 7527 is the recognition of decent and adequate housing as a fundamental human right. The law emphasizes the state’s role in upholding this right by providing a legal structure that promotes freedom, justice, and equity in rental arrangements.
To gain a deeper understanding of the intricacies of Costa Rican rental law, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an experienced attorney at Bufete de Costa Rica.
Recent amendments to the Costa Rican Rental Law have significantly altered the landscape for both landlords and tenants. While designed to provide greater clarity and protection, these changes introduce complexities regarding lease agreements, eviction processes, and permitted rent increases. It’s now more critical than ever for both parties to understand their rights and obligations under the updated legislation, and to seek legal counsel when navigating these often intricate regulations.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insight underscores a crucial point for anyone involved in Costa Rica’s rental market: the legal landscape has shifted, and proactive understanding is key to navigating these changes successfully. Whether you’re a landlord or a tenant, familiarizing yourself with the amended Rental Law is not just advisable—it’s essential. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for sharing his valuable expertise with our readers.
The law’s mandatory nature ensures that agreements violating its provisions are null and void. This safeguards tenant rights and protects renters from potential exploitation. Furthermore, the law’s scope extends to all lease contracts for real estate intended for residential or commercial purposes, encompassing a variety of activities, including industrial, artisanal, professional, technical, assistance, cultural, educational, recreational, and public services.
Law 7527 outlines specific obligations for both landlords and tenants. Landlords are required to guarantee the peaceful use and enjoyment of the property, maintain it in good condition, and refrain from disturbing the tenant. Conversely, tenants are responsible for paying rent on time, using the property as agreed upon, and maintaining it in good condition.
A critical aspect of the law pertains to rent adjustments. For residential leases, rent can be adjusted annually, but not by more than the accumulated inflation rate of the twelve months prior to the anniversary date of the contract, if inflation is at or below 10%. If inflation is above 10%, the Ministry of Housing and Human Settlements (MIVAH) determines the permissible increase. Rent increases exceeding these limits are legally void.
Lease durations and renewals are also clearly defined. Leases must be for a minimum of three years. If a landlord doesn’t notify a tenant of their intention not to renew at least three months before the lease expires, it is automatically extended for another three years. Tenants can terminate the lease with three months’ notice, unless otherwise agreed upon in writing.
The law also addresses special considerations for social housing. Rent increases for social housing follow stricter rules, and landlords are obligated to provide basic services. In cases where a property poses a health or safety risk, authorities can order the landlord to carry out necessary repairs.
Law 7527 provides detailed guidelines for various scenarios, including property transfers, subletting, inheritance, and disputes. It establishes specific procedures for legal action, including eviction processes and rent adjustment disputes. The legislation also incorporates provisions for the execution of guarantees and outlines the procedures for handling abandoned properties.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a law firm that specializes in various areas of Costa Rican law, including family law, consumer rights, and property law. They also offer legal advice through a podcast and other digital resources.
For further information, visit the nearest office of the Ministry of Housing and Human Settlements (MIVAH)
About Ministry of Housing and Human Settlements (MIVAH):
The Ministry of Housing and Human Settlements (MIVAH) is a Costa Rican government agency responsible for housing policy and programs, including regulations related to rental properties and social housing.
