Protecting Your Property in Costa Rica: Understanding Abandonment, Usurpation, and Filing an Acta to Safeguard Your Rights

Owning property in Costa Rica can be rewarding, but landlords must remain proactive in protecting their assets, especially when properties are left vacant. One growing issue is the risk of usurpation, or illegal occupation, particularly after a tenant has vacated a property. Fortunately, Costa Rican law offers a critical tool called an acta — a formal notarized record that helps establish property status and ownership.

This post explores how to use an acta to prevent squatters from exploiting legal loopholes, and what landlords need to know if a tenant abandons the property after losing an eviction case.

🏚️ What is Property Abandonment and Usurpation in Costa Rica?

Property abandonment refers to a situation where a property appears to be left unattended or unused for a period of time. While Costa Rican law does not define abandonment explicitly, empty or unguarded homes can attract squatters or opportunistic individuals attempting to claim possession under usucapión (adverse possession laws).

Usurpation (usurpación) is the unauthorized occupation of a property. Under Article 259 of the Costa Rican Penal Code, this is a criminal offense, punishable by fines or imprisonment, depending on the nature of the occupation. However, the legal process to remove usurpers can be long and costly if preventative steps are not taken. This can happen when an errant tenant reoccupies the property after abandoning it, or they allow another person to move in, in the case of an illegal sublet.

📄 What is an Acta and How Does It Help?

An acta notarial is a sworn declaration issued by a Costa Rican notary public. It includes a detailed description of the property's current condition, its occupancy status, and sometimes photographic evidence.

Filing an acta serves several purposes:

• Confirms the property is abandoned or not

• Establishes that the rightful owner is actively overseeing the property

• Becomes critical evidence in future civil or criminal proceedings

• Can be used to prevent squatters from claiming ignorance of ownership

An acta can be particularly effective after a tenant moves out or is evicted.

⚖️ When a Tenant Loses an Eviction Lawsuit but Abandons the Property Before Enforcement

This is a common gray area many landlords face:

A tenant may lose an eviction case, but move out quietly before the eviction is enforced by police. While this might feel like a relief, it can pose serious risks if landlords fail to act quickly.

In the absence of an official police act verifying the tenant’s departure, third parties (or even the ex-tenant) may attempt to return and claim they never left, especially if the property remains unguarded. This delay can open the door to usurpation or fraudulent occupation.

🔒 What to Do:

• Immediately inspect the property once you are aware the tenant has left.

• Call a licensed notary to create and file an acta documenting:

  • The property is now empty.

  • Any remaining belongings or signs of unauthorized entry.

  • The exact date and condition upon inspection.

• Change the locks and secure entry points as soon as legally permitted.

• Notify the court or your attorney to confirm enforcement of the eviction is no longer required.

Taking these proactive steps ensures there is a legal record proving the tenant has voluntarily vacated, and discourages re-entry or false claims of possession.

🛠️ How to File an Acta in Costa Rica

1. Hire a Notary Public: Only a licensed Costa Rican notary can draft and file an acta.

2. Site Inspection: The notary visits the property, documents the state, and takes notes/photos if applicable.

3. Drafting the Acta: The notary writes a detailed record of the property's condition, who was present, and the occupancy status.

4. Filing: The acta is signed and entered into legal records — usually kept on file at the notary’s office or submitted to the court if part of a legal case.

🧾 Legal Backing and Recent Cases

Recent cases in Costa Rica have underscored how quick action and proper documentation make all the difference. In 2023, a homeowner in Guanacaste successfully defended against a usurpation claim after an ex-tenant attempted to return months later. The landlord had filed an acta just days after the tenant left and used it in court to prove there was no abandonment — preventing a long legal battle.

🧠 Tips for Landlords

• 🔍 Monitor your property regularly, especially after tenant disputes or evictions.

• 📝 Use an acta proactively, not just when problems arise.

• 🧑‍⚖️ Work with a lawyer or notary familiar with property law in your region.

• 🔐 Secure the property quickly after vacancies to avoid squatters.

• 📷 Photograph and document everything after a tenant departs.

Final Thoughts

In Costa Rica, failing to act after a tenant leaves can leave landlords open to major legal risks — including usurpation or fraudulent claims of occupancy. Filing an acta is one of the simplest, most effective ways to show you are actively managing your property and to protect your rights in court. When your errant tenants finally vacate your home whether it’s during the eviction process or once they have lost the case, you need to be mindful to follow all the legal steps to prevent any further issues.

If you're a landlord in Costa Rica, take time now to put a plan in place for handling abandonment — before someone else takes advantage of your absence.

The Price of Justice: Low Judicial Salaries, Corruption, and Legal Vulnerability in Costa Rica

Costa Rica is often praised for its stable democracy, commitment to human rights, and lack of a standing military. Yet beneath its peaceful image lies a judicial system under strain—particularly when it comes to the financial and legal realities of its judges.

Low Pay, High Stakes

Judges in Costa Rica, especially those serving in lower courts or rural areas, often earn surprisingly modest salaries. While salaries for higher court magistrates can range from $5,000 to $8,000 per month, many judges earn much less—some making under $2,000 a month. These wages, though above the national average, are relatively low when considering the complexity of the work, the years of study required, and the high level of personal and professional responsibility involved.

For comparison, Costa Rican doctors and engineers can earn similar or higher salaries, yet without the same degree of public scrutiny or legal risk. When judges struggle to make ends meet, especially in regions with high cost of living, it raises concerns about the vulnerability of the judicial system to unethical influences.

Corruption in the Courts

While Costa Rica ranks favorably in global corruption indexes compared to many other Latin American countries, it’s not immune to judicial scandals. Over the years, there have been multiple high-profile cases involving judge corruption. Some judges have been accused of accepting bribes to influence rulings—particularly in drug trafficking, land dispute, and political corruption cases.

One notable case occurred in 2021, when a judge in the southern zone of Costa Rica was arrested for allegedly accepting payments from organized crime groups to dismiss charges or delay legal proceedings. These incidents highlight how low pay, combined with weak oversight, can create openings for corruption.

The judiciary has responded to these cases by promising reforms, increasing internal investigations, and improving transparency. Still, systemic issues remain. A strong, independent judiciary needs to be supported—not just with rhetoric, but with proper funding, ethical training, and institutional protection.

While Costa Rica has faced notable corruption scandals involving public officials and construction companies, specific instances of judges accepting bribes in land dispute cases are not prominently documented in available sources. The most significant recent case is the "Cochinilla" scandal, uncovered in June 2021, where private construction firms allegedly offered bribes—including money, vehicles, land, and other favors—to public officials in exchange for preferential treatment in securing government infrastructure contracts. This scheme reportedly led to a $125 million deficit in the national budget between 2018 and 2020.​

Additionally, concerns about judicial corruption have been raised. For instance, in December 2020, a judge and a member of Costa Rica's national police force were arrested for alleged involvement with a major drug trafficking organization. Similarly, in November 2020, another judge and a judicial assistant were detained for purported collaboration with drug traffickers.

While these cases underscore challenges within Costa Rica's judicial system, specific instances of judges accepting bribes in land dispute cases are not prominently documented in the available sources.

Judges Can Be Sued—And That’s a Problem

In Costa Rica, judges are not immune from legal action. Defendants can sue judges for decisions they perceive as wrongful or abusive—particularly in civil matters. While judicial accountability is essential in any democratic system, the possibility of personal lawsuits can have a chilling effect on judicial independence.

Some judges, fearing legal repercussions, may become overly cautious in their rulings, delay decisions, or avoid handling controversial cases. Others have expressed frustration at what they see as a lack of institutional backing, especially in politically sensitive trials. This risk adds yet another layer of pressure to a profession already weighed down by financial constraints and heavy workloads.

The Need for Reform

The Costa Rican justice system stands at a crossroads. On one hand, it is a model for the region—a country that abolished its army to invest in education and justice. On the other hand, it is grappling with internal contradictions: underpaid judges, a growing number of corruption cases, and a legal system that sometimes punishes its own magistrates for doing their job.

To truly strengthen the rule of law, Costa Rica must invest more in its judiciary—not just through salary increases, but through legal protections and institutional reforms. A well-paid, ethically supported, and legally shielded judge is not a luxury; it is a necessity for any functioning democracy.

Why Some Tenants Won’t Leave Even After They’ve Been Evicted

Evictions are never pleasant for either party. But while many tenants vacate willingly after receiving a legal eviction notice, there are always a few who simply refuse to leave—even after a legal eviction has been finalized. Understanding why certain tenants overstay their welcome can help landlords, property managers, and legal professionals better prepare for these difficult situations.

Why Do Some Tenants Refuse to Leave After Eviction?

When an eviction is legally ordered, tenants are required to vacate the property. However, some dig in their heels and stay put until they are physically removed. These types of tenants often display predictable behaviors and characteristics, including:

Common Behaviors:

• Ignoring notices and legal documents as if they don’t exist.

• Making constant excuses about why they need "just a little more time."

• Blaming the landlord or external factors for their situation.

• Obstructing access to the property by changing locks, blocking entrances, or becoming confrontational.

• Attempting last-minute negotiations despite the eviction order already being finalized.

Likely Personality Types:

Erroneous tenants who refuse to leave often share traits such as:

• Entitlement – They believe they have a right to stay, regardless of the law.

• Victim mentality – They see themselves as being unfairly treated and refuse to accept accountability.

• Avoidant – Rather than facing their financial responsibilities or making alternative plans, they delay and deny the reality of eviction.

• Manipulative – Using guilt, emotional pleas, or false promises to stall enforcement.

Why Won’t They Just Leave?

For these tenants, refusal to vacate is rarely about simple oversight. The underlying reasons often include:

• Financial hardship – They have nowhere else to go and no funds to relocate.

• Hope for a loophole – They believe some legal technicality will allow them to stay.

• Revenge – They want to inconvenience or punish the landlord.

• Denial – They refuse to accept that the situation is final and keep waiting for a “miracle” solution.

What Happens in Costa Rica After Eviction is Formalized?

Evictions in Costa Rica are a legal process governed by the Ley General de Arrendamientos Urbanos y Suburbanos (General Law of Urban and Suburban Leases). After a landlord obtains a formal eviction order through the courts, the tenant is given a specific deadline to vacate, typically communicated by a court official.

Once this period expires:

• A judicial officer (also known as a notificador judicial) schedules a physical removal.

• Law enforcement may be present to ensure peace and security.

• If the tenant still refuses to leave, the officer has the legal right to forcibly remove the tenant and their belongings from the property.

• The landlord is then legally permitted to change locks and secure the premises.

It’s important to note that, in Costa Rica, tenants may still try to delay the process through appeals, but once the eviction order is final, no further legal actions can halt the physical removal. The process is strictly enforced to ensure that property owners regain control of their assets.

Tenant Protections in Costa Rica

Like in other countries, tenants have rights and are protected in Costa Rica. Tenant rights are primarily governed by the General Law of Urban and Suburban Leases (Ley General de Arrendamientos Urbanos y Suburbanos), which outlines the responsibilities and protections for both landlords and tenants. There are some interesting challenges to note regarding the unique protections afforded to tenants.

1/ Protection for low-income housing. If your property value is under $100,000, it is considered by law to be low-income housing. There are greater safeguards to protect tenants in a property designated as low-income housing. During an eviction, the courts require an appraisal of your property from the municipality registrar to determine its designation and what set of lease laws apply.

2/ Protection for seniors. Cuidadano de Oro “Golden Citizen” is a program that provides free or supported service, front-of-the-line service, and discounted, and expedited service in government institutions to the elderly registered in this program. All seniors, including non-Costa Ricans who have lived in Costa Rica for 3 years can be eligible for this program. As long as their residency is in good standing, expats are eligible.

3/Tenants have a right to a 3-year lease minimum under the General Law of Urban and Suburban Leases. If a landlord wishes to terminate the lease they must give at least 3 months notice prior to the end of the lease or the lease automatically renews. This is important to note that if the lease you are drawing up is shorter term, your property must be registered with the ICT (tourism board) as a holiday rental. As well, the lease must state that it is a holiday rental.

These details are important to note before you agree to a lease with a potential tenant. You need to know if your property or the tenant fall under any special protections by the courts. As well, you need to cover your bases when determining the type of lease that you draw up, particularly if it is a short term lease, have a lawyer look over the agreement and make sure your property is designated for tourism. This will offer you greater protection if you find yourself in the unfortunate position to evict a tenant. If you property is not designated for tourism, then you are subject to the General Law of Urban and Suburban Leases (Ley General de Arrendamientos Urbanos y Suburbanos).

The Law Applies to All

Moving to Costa Rica means embracing a laid-back lifestyle and the famous pura vida vibe. It’s a refreshing change—forgetting about closed-toed shoes or maybe even shoes altogether. Seatbelts feel like relics of your old life, and paying cash to sidestep taxes might feel like just part of the culture. Tipping in restaurants isn’t the norm here, so it’s easy to slide into the comfort of not tipping, even though you know servers earn a low hourly wage. And if you’re just visiting, that sense of freedom might be amplified. Suddenly, you find yourself considering things you wouldn’t dare at home: buying drugs on the beach, drinking and driving, or dabbling in other questionable activities. After all, what happens in Costa Rica stays in Costa Rica… right? Wrong.

It’s important to remember that Costa Rica has laws, and you are just as subject to them as any Costa Rican citizen. Whether you’re here on a tourist visa, as a retiree, a worker, a rentista, or a permanent resident, you’re expected to follow the same rules as everyone else. You might feel like you’re getting away with bending the rules because the legal process here can seem slow, but don’t let that lull you into a false sense of security. Costa Rica has extradition treaties with the United States, Canada, many European nations, China, and much of Central and South America. If you’re hiding out here to dodge legal troubles back home, it’s only a matter of time before it catches up with you.

If you assume Costa Rica’s reliance on paper records or the lack of a robust digital database makes it easy to slip through the cracks, think again. Times are changing. Respecting the laws of the land isn’t just about staying on the right side of the law—it’s about protecting yourself from serious consequences. Prisons in Costa Rica are reportedly grim, and breaking the law here could lead to deportation, extradition, a lifetime travel ban, or worse, imprisonment.

Many fugitives, including murderers, have been discovered hiding in Costa Rica. For example, there’s the case of the American yoga teacher who tried to evade justice by undergoing plastic surgery and living under the radar here. Or the husband who murdered his wife in the U.S. and fled to Costa Rica to start a new life with his young lover. Then there’s the doctor from the States convicted of sex offenses who is now back in prison.

In addition to these cases, countless individuals have been arrested for running, buying, and trafficking narcotics in Costa Rica. It’s worth noting that marijuana is not legal here, despite misconceptions by some visitors.

White-collar crime doesn’t fare any better. While tax evasion, fraud, or skipping out on paying bills may seem convenient in the short term, it will eventually catch up with you. Costa Rica may be known for its relaxed pura vida lifestyle, but it is not a lawless haven.

For those who have built a life in Costa Rica—friends, family, investments, or a community—breaking the law risks losing it all. And while the warmth and friendliness of Costa Rican people might make you feel at ease, don’t mistake kindness for weakness. The courts here are not particularly sympathetic to foreigners who exploit or disrespect their laws.

So, as you embrace the beauty and freedom of Costa Rica, remember that pura vida isn’t about living without limits—it’s about living with respect. Respect for fellow Costa Ricans, the environment, and the law. Stay mindful, follow the laws, and truly appreciate what this amazing country has to offer.

How to protect your property

If you have a piece of land or vacant property in Costa Rica you will need to protect it from squatters and fraud. Vacant and empty land or homes present an easy opportunity for thieves and white-collar criminals. When buying, selling, and maintaining your property you must do your diligence to protect your investment.

You can do this by not leaving it unattended and having regular groundskeeping and cleaning. Make sure you have a fence and proper clear signage so that there is no dispute on the land. Always have an alarm system on your house and have it serviced regularly. You may want to have a backup generator for frequent power outages or “blackouts”.

When renting your home:

1. Prepare a lease using a lawyer and make sure it is iron clad, there are system abusers everywhere, so do your diligence

2. Be aware of the landlord-tenant laws in Costa Rica-know your rights and responsibilities

3. Do a thorough inventory and inspection before and after renting.

4. Do a background check on potential renters. Hire a PI or run their ID in the system, trust us, it may save you a headache in the future.

Protecting your home from fraud:

1. You can take a Property Alert service, where they will monitor your property title and alert you if anything has changed in your title given by the National Register. Do your own due diligence on this because the registry takes no responsibility.

2. Check the title of your property online once a month. It takes only a few minutes.

3. Register a Cédula Hipotecaria on your property. This is much like a mortgage you own, to protect the property from being sold or mortgaged by anyone else. Ask your attorney about the Cédula Hipotecaria. If you don’t have an attorney, check the list of legal counsel we recommend.

Unfortunate Corruption

Costa Rica is a breathtaking country, renowned for its stunning landscapes, warm and friendly people, and an exceptional lifestyle. It’s no wonder that few visitors leave without dreaming of how they might return—or even relocate—before their flight home.

My first trip to Costa Rica in 2001 was nothing short of mind-blowing and eye-opening. I vividly remember that first morning: sitting in smooth, sturdy Guanacaste wooden chairs, the gentle Pacific breeze brushing against my face as a symphony of birds filled the air. Breakfast was an unforgettable experience—fresh starfruit, melon, and the sweetest papaya I had ever tasted, all enjoyed from a shaded table overlooking a volcanic rock beach. This felt like paradise, a version of life I hadn’t imagined possible.

From that moment on, the dream of returning to Costa Rica was born. The thought of spending every day surrounded by this climate, sunshine, and vibrant energy became an intoxicating vision. Years of persistent dreaming and countless return trips eventually culminated in building a life in Costa Rica—a true testament to what dreams are made of.

Living the dream is exactly that—a dream—but it doesn’t always account for the realities of life. Reality has a way of reminding you that you’re not just dreaming; you’re living in a world filled with other people, each with their own agendas and perspectives, often different from your own.

In my experience, most people I’ve encountered in Costa Rica are incredible—fun, friendly, talented, hospitable, and generous. However, as with anywhere in the world, you’re bound to come across individuals who are less than honorable—morally bankrupt opportunists who challenge the idyllic vision.

You may encounter individuals in Costa Rica who are on the run from the law in their home countries or even hardened criminals. Some locals, known as Ticos, might resent foreigners and wish them ill, while others may see expats as easy targets—a cash cow or a naïve "gringo" to exploit. Likewise, you might come across other expats taking advantage of loopholes in Costa Rica’s legal system, disregarding the country's laws or acting as though those laws don’t apply to them.

Costa Rica is a country on a rapid growth trajectory, perhaps growing faster than the government can effectively manage. This rapid expansion creates opportunities for individuals with bad intentions to exploit the system. At the same time, a widening wealth gap has left many people vulnerable to exploitation or influence, which can, unfortunately, breed corruption and bribery.

I say this with reluctance, as the vast majority of people in Costa Rica are wonderful—kind, generous, and welcoming. However, my personal experiences have shown me that corruption and bribery do exist, often driven by these societal challenges.

Let’s consider, for example, the traffic stops enforced by police in Costa Rica. While they may appear to be routine speed traps or passport checks for illegal migrants, my personal experience has shown a different side. On multiple occasions, I’ve encountered police officers who openly demanded cash or goods to let me pass or avoid a speeding ticket. This isn’t an isolated incident; locals and expats in the know often advise keeping $10 in cash visible in your car. This small sum can be taken discreetly, potentially preventing the police from asking you to open your wallet or belongings for more.

Similarly, corruption extends to utility companies. It's not uncommon for employees to accept off-the-books payments to set up accounts, change ownership details, or bypass the account holder entirely. The theft of utility meters is a frequent issue, particularly in operations like illegal grow houses or informal settlements (shantytowns). In these cases, utility workers may be bribed to overlook infractions or tamper with accounts. Border and airport security are also susceptible, and given the drug trafficking routes running through Costa Rica from Colombia, money often speaks louder than regulations.

Another concern lies with notaries and certain unscrupulous lawyers who exploit the system for financial gain. For instance, some notaries have been known to file false paperwork with the national registry to facilitate the theft of property titles. One notable case involved a couple living in San José, who discovered upon returning from vacation that someone they trusted had conspired with a shady notary to transfer the title of their home. They are now embroiled in a legal battle to reclaim their property.

Additionally, corrupt lawyers can manipulate the judicial process by paying off judges or court staff to misplace documents, delay cases, or obstruct justice. Civil lawsuits are particularly vulnerable, with legitimate cases often tied up in procedural delays or dismissed altogether. It’s not uncommon for cases to drag on for years, sometimes over a decade, before reaching a conclusion.

Real estate transactions in Costa Rica also require extra caution. There is no formal licensing system for realtors and no professional body to regulate them. This lack of oversight makes it essential to conduct thorough research and work with a competent, trustworthy lawyer. A good lawyer can ensure that your title, deed, and contracts are properly registered and in order, safeguarding your investment from potential fraud or mismanagement.

Link to read about issues of corruption in Costa Rica.

Why Courtroom Corruption Has Costa Rica Concerned

Costa Rica Struggles to Curb Perceived Corruption Levels

Costa Rica Real Estate Fraud - Help! They stole my property

Don’t get dragged in to the drama

Scam artists often use subversive tactics to draw you into their schemes, sometimes without you even realizing it. You might already be caught up in one right now! In marketing psychology, this strategy is known as a "call to action," which plays on your emotions to bait you into engagement.

When it comes to renting out your property, it’s essential to remember that this is a business transaction—emotions shouldn’t play a significant role. If you find that your tenants are eliciting strong emotional responses, it’s a red flag. They may be using manipulative tactics to gain an advantage.

One common approach is being overly nice and helpful, creating a false sense of trust and security. If they frequently update you on the "extra care" they’re taking with your property, it could be a ruse. Similarly, excessive praise, thank-you messages, or emojis (like hearts or smiley faces) can be a form of “love bombing,” designed to build a manipulative connection.

Alternatively, tenants may rely on frequent complaints or fault-finding about the property, testing how far they can push you to accommodate their demands. By doing so, they gauge your willingness to prioritize their satisfaction, making it easier to manipulate you.

Another tactic involves leveraging sympathy by mentioning children, pets, or elderly dependents. They might subtly imply, “How could someone with a family be dishonest?” Don’t let these appeals to emotion cloud your judgment.

Pay attention if their communication style feels unusual compared to other tenants. They may have shared an overly elaborate or fantastical backstory during the application process. Oversharing, name-dropping, humblebragging about their successes, or recounting glamorous adventures are all attempts to make their persona seem exceptional, trustworthy, or wealthy. These behaviors are telltale signs of a potential scam.

Remember, the term "confidence game" exists for a reason: con artists rely on gaining your trust to succeed. Stay vigilant and keep emotions out of the equation when managing rental agreements.

Be Mindful of Currency

Make sure your rental leases are in Costa Rican colones currency. If you write your contract in any other currency-USD, Euros, etc, then the rate stands for the entire duration of the contract and no increases may be made. So if you have a tenant for 3-5 years and the contract stipulates the rent being paid in USD, you will not be allowed to adjust it for annual inflation. If you write your contract in CRC colones, then you are entitled to increase the rent annually up to 10%. Concerning housing rentals, in Costa Rica, the agreed rent in colones can only be updated at the end of each year of the contract; In the case of rents agreed to in a foreign currency (ie US dollar or Euro), the agreed amount will be maintained for the entire term of the contract, without the right to readjustment.

In Costa Rica, readjustments in housing rentals is a set of rules that regulate all property rental and lease contracts, contained in Law No. 7527 “General Law of Urban and Suburban Leases” (Ley General de Arrendamientos Urbanos y Suburbanos – 7527), specifically to article 67 of the so-called Tenancy Law (Ley del Inquilinato). As tempting as it may be to draw up a contract in foreign currency due to the instability of the CRC colones, be aware that the economy in Costa Rica is strong and the colones has climbed in value steadily over the years. Get legal advice before drawing up any contract. We want to share the tip that only leases in CRC colones can be adjusted for inflation annually.

The 3 year lease!!!

Costa Rica has a unique minimum lease term of 3 years! That’s right, you read that correctly. If you sign a lease with a tenant for 1 year, 6 months, or 2 weeks it is not considered valid based on the General Law of Urban and Suburban Leases, Law No. 7527. The term minimum is 3 years for housing (art. 70). Although the contract indicates a shorter period, as it is a provision of public policy, it is considered not established and the 3 years will apply. Unless your property is registered with the ICT (Costa Rican Tourism Board) and your property is known as a holiday rental or short-term tourism accommodation. Otherwise, your lease no matter the terms is only recognized as a 3-year lease term by the courts in Costa Rica. When drawing up any lease, have an experienced lawyer look at it before signing anything. Make sure for any short-term lease you have the wording “vacation rental” written in your lease and make sure your property is registered with the ICT. This is the only way to protect you from a tenant outstaying their lease.

Basically, if you have a tenant who agrees to stay 3 months but then they decide not to leave, you cannot get them out. Particularly if the tenants continue to pay their rent every month, you will not have much legal ground to evict them. If you have a three-year lease term, you must notify the tenants in writing in advance of the lease expiration that you do not wish to renew the lease. Otherwise, the lease just self renews and you might be stuck with them for another 3 years.

Rent Scams

You manage to buy your dream house in Costa Rica and you hope to spend your winters or retirement there or perhaps you want to move the whole family down. You are not alone! Costa Rica draws dreamers, surfers, celebrities, and retirees alike to its equatorial beauty. Known for its green living, longevity, permanent sunshine, and pura vida (pure life). There are over 140,000 expats living in a country with a population of 5.1 million people. That’s almost 3% of the country comprising mostly people from the USA, Canada, and Europe seeking the sun and laid-back lifestyle of Costa Rica. There are 3 million visitors each year and so many of those that visit get the bug and start to dream of moving to Costa Rica one day.

Not only does Costa Rica attract dreamers, artists, body worshippers, nature lovers, surfers, and thrill seekers, it also attracts schemers, cons, and escape artists. Not to be harsh, but a good friend told me years ago when I first moved to Costa Rica, “Don’t Google the gringos!”. At the time it seemed like a funny aside or maybe a bit of xenophobia or resentment of the gringo invasion. Fair enough I thought. But time has proven it was more of a proverb to live by than a quippy comment. Do not Google the gringos because 5 out of 10 times you will find that your new neighbor has a past they are trying to forget.

Places like Costa Rica are dreamy and otherworldly and hold the promise of reinvention or escape. Most of us are wanderers, seekers, and explorers at the very least or we wouldn’t find ourselves far from home learning a new language and navigating torrential tropical downpours and outrageously potholed moonlike roads with no guardrails. Even the beaches, the world’s finest in my humble opinion belie the power and dangers of the rip. Costa Rica draws seekers who shirk the status quo and you are guaranteed to meet some awesome like-minded people. That being said it is also a haven for crooks and cons due to the anonymity of easy LLC forming here, a complete lack of addresses, and lax laws. One can disappear here or use it as an opportunity to take advantage of a whole new pool of victims.

When deciding to rent to anyone, do your research. Get references, run their background online, use a PI service, or even check with your local bounty hunter to find out if your potential tenants are legit. Rent scams are rampant, particularly in Guanacaste province which attracts the most expats (illegal immigrants depending on your politics).

Here are a few examples of popular rent scams;

1/Pay first and last month’s rent, then don’t pay again knowing that it may take months or even a year to evict a tenant. This is exactly why the new monetario arrendamiento law was created and allows for expedited eviction for non-payment of rent.

2/Provide fake rent deposit receipts. If you are a foreign owner meaning you do not have your residency, then you cannot send or receive SINPE which is an electronic transfer using your cell phone. Only residents of Costa Rica have this banking privilege and it is the most common form of money transfer there. So a tenant may scam you by showing that a deposit was made knowing full well that you cannot receive the funds. Insist that tenants send you a copy of the bank transfer via email each month and that it is not verbal, via text, and that it is not SINPE.

3/There are shady lawyers who will accept payment to bog down the eviction process for clients to get “free” rent. This means that if your rent is $3000/month some shifty unethical lawyers will take 50% on the terms that they will bog down the courts with useless paperwork and defenses buying the tenant time to stay rent-free at your property. That being said, the tenant still has to pay the lawyer the 50% (1500/month in this case) to buy them time. Either way, it’s a bargain for the renter while you do not earn any income for your property.

4/ Exorbitant or fraudulent repair bills can act as a shield or be deducted from paying rent. One horror story I heard was a tenant who claimed the pool wasn’t working properly and offered to call a repair person for the landlord. This seemed like a proactive helpful thing to do. But then the tenant showed up with a pool repair invoice for $15,000, essentially saying they have a $15,000 rent credit. This landlord could not prove the receipt was a forgery and was stuck with these tenants living rent-free while they litigated. For your knowledge, all repairs need be approved by the landlord and no permission should be given to the tenant to undertake and invoice for any repairs to protect you from this scam. If repairs are needed you have 10 business days to attend to them except in the cases of natural disaster.

5/Tenants might accept or agree to a short-term lease such as a “green season” lease at a reduced rate and then claim that your short-term lease is invalid and they are entitled to stay for 3 years under Costa Rican law. Thus getting a real rent bargain and prohibiting you from using your property as you see fit.

My best advice is to definitely Google the gringos and if that doesn’t turn up anything, dig a bit deeper. Check with their references, and go to their former landlords or employers. This can be tricky because many potential renters you will encounter are retired, self-employed, or independently wealthy. But you have to do your research. If they are from the USA or Canada it can be easier to find out people’s info, but if they are from another non-English speaking country consider using a VPN or searching in other languages to optimize your search. It may seem like a hassle or a bit too nosey but it will save you a headache in the long run.