Renter’s rights

As a renter, you are pretty well protected under Costa Rican law. Rental agreements are legally binding whether they’re verbal or written, although it’s recommended that you get a written contract, translated into your native language if you’re not comfortable with Spanish. No matter what it says in the contract, a renter has a right to a rental property for three years, if the renter so chooses (the exception is if the owner wants to move in to the rental property as a primary residence). The rent, as well as possible increases, should be laid out in the contract. If increases are not addressed in the contract, then the landlord may raise the rent by up to 15% if the rent is in colones. If the rent is paid in a foreign currency and annual increases are not specified in the contract, the landlord may not raise your rent. Rent is always due within five days of the first of the month. If the renter has not paid within that time period, even one day extra, he or she can be evicted. The process takes three months, more or less. Any improvements you make to the rental become property of the owner. Also, like in the U.S. and Canada, the landlord is responsible for the upkeep of the property, although this can be hit and miss depending on the landlord.

So, to review the pros and cons of renting versus buying or building: