The current times are unprecedented. The Coronavirus has impacted all areas of society, forcing new measures of social behavior such as isolation and distancing. Governments around the planet try to establish different measures to contain the disease, having to improvise in many cases. In all cases, the effect has been the same: the economy is suffering massive damage, causing a domino effect. In Costa Rica, some aid programs have been implemented to mitigate the damage, as well as laws that restrict traffic in private vehicles and allow employers to reduce employees’ wages and hours.
Lawmakers now have a new goal: The landlord-tenant relationships. This hope to achieve this by modifying the current Rental Law or Ley de Arrendamientos Urbanos y Suburbanos. An initial draft was presented in Congress several weeks ago, containing somewhat of extreme regulations for the benefit of tenants only. Since then, different modifications were introduced and on April 17th, bill number 21927 was published in the official newspaper La Gaceta. Although it is possible that in the final approved version there are some further changes, we want to inform you what the bill establishes.
In the case of Home Rentals (Residential), the changes are as follows:
The ways that the tenant must demonstrate the reduction of income are as follows:
In the case of Commercial Rentals, the changes are as follows:
The ways that the tenant running a business must demonstrate the reduction of income are as follows:
The way in which the tenants -both residential and commercial- must reimburse the rent not paid later are the following: (Thats right they expect you to pay everything you missed back)
Other important provisions are as follows:
As indicated, this is a bill, which could be approved as it is or have some type of minor modifications, but everything indicates that it will be approved soon. Landlords and tenants must be prepared to apply these changes
About the Author: Allan Garro was incorporated as a lawyer and public notary in 1996. He specializes in Litigation, Corporate, and Real Estate Law. He has also acted as an external legal consultant to Congress. He has been the author of more than 100 published English Language articles and can be reached at email@example.com