In Costa Rica, the General Law of Urban and Suburban Leases (Law No. 7527) lays out the rights and responsibilities for landlords and tenants.

Key Rights of Landlord

1. Receiving Rent: Landlords have the right to collect rent as agreed in the lease. For residential leases in Costa Rican colones, rents can be increased annually based on the inflation rate over the past year. If inflation is 10% or less, the increase matches the rate. If it’s higher, the Ministry of Housing sets the additional percentage. For leases in foreign currencies (like U.S. dollars), the rent usually stays fixed throughout the lease. Tenants must pay the rent within 7 days of it’s due date unless otherwise stipulated in the lease. At that point you can begin the monitorio arrendamiento eviction process when a tenant is 1 business day past the 7th day overdue. Keep in mind, if your tenant has consistently paid late, it can be argued that would be the new date for rent payment, example if they always pay 2 weeks late and you have not evicted them, they can argue in court that rent was due midmonth as has been the standard arrangement.

2. Ending the Lease: If tenants don’t follow the rules—like missing rent payments, damaging the property, or using it for illegal activities—landlords can legally end the lease. This needs to be done properly, with written notice explaining why and when the tenant should leave. You will need a lawyer to formally inform the tenants of the eviction.

3. Inspecting the Property: Landlords can check on their property, typically once a month during the day or during business hours, to ensure everything is in good shape. Just make sure to give your tenant a heads-up before visiting, typically 24 hours is required. If your tenant prevents you from inspecting your property by means of refusal, threats, or changing the locks you may have grounds to evict them.

4. Security Deposit: At the end of a tenancy, landlords can use the security deposit to cover unpaid rent, utilities, or damages beyond normal wear and tear. Be sure to provide an itemized breakdown of any deductions to keep things transparent. You should have photos of the property before to prove its condition and contents. The lease can stipulate the terms in which the security deposit is refunded, typically 30 days after the home is vacated because utility bills take a month to settle. You should perform an inspection before and after the tenants reside in your home especially if they have pets or children.

5. Legal Remedies: If a tenant breaks the rules, landlords can take legal steps, like filing for eviction or claiming damages. Following the correct legal process is key to resolving any issues smoothly. You have the right to legal recourse for eviction and damages and you may be entitled to sue for legal fees if any are incurred due to the delinquent tenant.

Key Rights of a Tenant

1. Written Agreement: You’re entitled to a written lease that clearly outlines the terms of your rental, such as the rent amount, duration, and any rules. This helps both you and your landlord stay on the same page. Some people propose verbal agreements but just know that your tenant has the right to a written agreement and therefore you should generate one, have a lawyer look at it, and have it signed.

2. Privacy Matters: Your landlord must respect your privacy. They can’t enter your rental without giving you reasonable notice, except in emergencies. For regular inspections, they’ll need to coordinate with you first usually by providing 24 hours notice. You cannot refuse the landlord, or make it difficult by refusing, threatening, or changing the locks.

3. Safe and Livable Space: You have the right to a safe, habitable place to live. Your landlord is responsible for keeping the property in good condition and ensuring essential services like electricity and plumbing are working properly. If your lease states that you are responsible to pay certain utilities then you are required to do so or it may be grounds for eviction.

4. Fair Rent Increases: If your lease is in Costa Rican colones, rent increases are tied to inflation and carefully regulated and typically up to 10% per year. For leases in foreign currencies (like U.S. dollars), the rent usually stays fixed during the contract.

5. Ending the Lease: If you need to leave before the lease ends, you can do so by providing advance notice (typically three months). Be sure to check your lease for any specific terms or penalties for early termination.

6. Resolving Disputes: If something doesn’t feel right, you have the right to seek legal help. Local rent tribunals and courts are there to assist with any disagreements between you and your landlord. Note that there are legal expenses involved and that you may be liable to pay the court.