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).