What legal rights do tenants and landlords have in Costa Rica’s rental system?

Renting property in Costa Rica is common for both expats and locals, but the legal landscape governing rentals is very different from the U.S., Canada, or Europe. Costa Rica’s Rental Law (Ley 7527) protects the rights of tenants and landlords equally—but in practice, the law is extremely tenant-friendly in long-term rental situations and more flexible in tourism and short-term rentals.

Understanding the legal rights and obligations on both sides is essential to avoid disputes, unlawful evictions, unpaid rent, or problematic tenants.

This guide explains what rights tenants and landlords have in Costa Rica’s rental system, based on the country’s urban and suburban rental law.

1. The Law Governing Most Rentals: Ley 7527

Costa Rica’s Ley General de Arrendamientos Urbanos y Suburbanos applies to:
✔ Long-term residential rentals
✔ Commercial rentals
✔ Unfurnished rentals
✔ Furnished rentals without tourism activity

It does NOT apply to:
❌ Vacation rentals
❌ Airbnb or short-term rentals
❌ Hotels or hospitality services
❌ Rentals less than 1 month (tourism law applies instead)

Long-term rental law is significantly more regulated than short-term rentals.

2. Rights and Obligations of Tenants

Tenants in Costa Rica have strong legal protections. Key rights include:

1. Right to a Written Contract

The tenant has the right to:
✔ Receive a written lease
✔ Understand terms clearly
✔ Receive a copy of the signed contract

Verbal leases are legal but highly risky for both parties.

1. Right to Stable Rent (Limited Increases)

Rent increases must follow legal formulas:

• Controlled by the Central Bank inflation index (IPC)
• Typically around 3–5% per year
• Cannot exceed inflation unless contract is in U.S. dollars
• Dollar contracts may allow higher increases if agreed

Landlords cannot raise rent arbitrarily.

1. Right to Privacy

Landlords cannot:
❌ Enter the property without permission
❌ Conduct surprise inspections
❌ Interfere with tenant’s peaceful enjoyment

Tenant must grant reasonable access for repairs.

1. Right to Timely Repairs

The landlord must:
✔ Maintain essential infrastructure
✔ Ensure home is habitable
✔ Repair critical systems (water, electricity, septic, roof leaks)

Tenants may request repairs formally and legally enforce them.

1. Right to Non-Discrimination

Tenants cannot be rejected based on:

• nationality
• race
• religion
• gender
• disability

Expats are protected equally.

1. Right to Contract Renewal

Unless the contract:

• is explicitly non-renewable, or
• violated by the tenant,

…the tenant has a right to continue renting.

Costa Rican law strongly favors continuity.

3. Rights and Obligations of Landlords

Landlords also have clear rights under the law.

1. Right to Receive Rent on Time

Landlords may:
✔ Charge late fees (if specified in the contract)
✔ Demand compliance
✔ Initiate legal action for unpaid rent

1. Right to Require a Security Deposit

Landlords can charge:

• up to one month of rent as a deposit

They may deduct for:
✔ Damage beyond normal wear
✔ Unpaid utilities
✔ Unpaid rent

Deposit must be returned within 30 days unless deductions are justified.

1. Right to Evict for Legal Cause

Acceptable grounds for eviction include:
✔ Non-payment of rent
✔ Property damage
✔ Illegal activity
✔ Unauthorized commercial activity
✔ Subletting without permission
✔ Violating contract terms

Evictions must follow the judicial eviction process (desahucio), unless the tenant voluntarily vacates.

1. Right to Periodic Inspections (With Notice)

Landlord may inspect with:

• reasonable written notice
• tenant permission
• proper scheduling

No surprise visits allowed.

1. Right to Increase Rent Within Legal Limits

Landlords may increase rent:

• per contract terms
• following the permitted IPC index
• annually (most common)

Improper increases are invalid.

1. Right to Enforce Contract Terms

Landlords may enforce:
✔ No-pets clauses
✔ No-subletting rules
✔ Occupancy limits
✔ Maintenance obligations

Contract must clearly specify these rules to be enforceable.

4. Key Components of a Legally Strong Rental Contract

Whether you’re a tenant or a landlord, the contract should include:

• Parties’ full names and ID numbers
• Property description
• Term (usually 3 years)
• Rent amount and payment terms
• Deposit amount
• Maintenance responsibilities
• Utility payment responsibilities
• Rent increase clause
• Termination conditions
• Pet policy
• Subleasing rules
• Use of premises
• Inspection rights
• Parking arrangements
• Inventory list (for furnished rentals)

Without clear wording, disputes default to tenant protections in the law.

5. Evictions: What Tenants and Landlords Must Know

Eviction (desahucio) must follow legal procedure.

Landlords can evict for:

✔ Non-payment of rent
✔ Property damage
✔ Illegal activity
✔ Unauthorized commercial use
✔ Contract breach

Landlords CANNOT evict for:

❌ Changing their mind
❌ Selling the property
❌ Wanting to move into the property
❌ Personal disputes
❌ Disliking the tenant

Unless the contract includes specific clauses allowing non-penalized non-renewal.

How long does eviction take?

• 2–6 months for simple non-payment
• 6–12+ months for complex cases

Tenant protections extend the process significantly.

6. Rental Categories and Their Legal Rules
7. Long-Term Residential Rentals (Subject to Rental Law)

✔ Strong tenant protections
✔ Rent control
✔ 3-year minimum contracts typical
✔ Eviction rules apply

1. Commercial Rentals

✔ More flexible
✔ Rent increases negotiated freely
✔ Businesses responsible for more repairs
✔ Evictions easier if contract is clear

1. Short-Term Tourism Rentals (Airbnb, VRBO)

Not covered by Ley 7527.
Governed by:

• General Commercial Code
• Tourism regulations
• Tax regulations

✔ Landlords have more control
✔ Tenants have fewer protections
✔ Eviction is straightforward (non-payment or contract violation)

7. Common Mistakes Made by Expats

❌ Renting without a written contract

Leaves both sides exposed.

❌ Landlords assuming U.S.-style eviction rules apply

Costa Rica strongly protects tenants.

❌ Tenants believing rent can’t be raised at all

Rent increases must follow the contract and law.

❌ Renting furnished long-term without clear inventory

Disputes over missing items are common.

❌ Landlords entering the property without notice

Illegal and can invalidate eviction attempts.

❌ Tenants refusing repairs but demanding improvements

Tenants must allow landlord access for repairs.

8. Real Scenarios (Common Expat Experiences)

Scenario A — Landlord Enters Without Notice

Landlord visits unannounced.
Tenant files complaint.
Judge sides with tenant.

✔ Privacy is protected by law.

Scenario B — Tenant Stops Paying Rent

Landlord properly files eviction.
Court orders tenant to vacate.

✔ Non-payment is clear legal grounds.

Scenario C — Illegal Rent Increase

Landlord raises rent 15% without contract basis.
Increase invalidated by court.

✔ Rent increases must follow IPC index.

Scenario D — Airbnb Host Removes Guest for Violating Rules

Short-term rental not under Ley 7527.
Immediate termination allowed.

✔ Different laws apply for tourism rentals.

9. Checklist for Tenants and Landlords

For Tenants:

✔ Get everything in writing
✔ Understand rent increase rules
✔ Confirm deposit return terms
✔ Ensure contract respects Ley 7527
✔ Maintain the property responsibly
✔ Report issues formally

For Landlords:

✔ Use a legally drafted lease
✔ Verify tenant identity
✔ Document inventory
✔ Request proper deposit
✔ Keep written communication
✔ Follow legal eviction process
✔ Do not raise rent illegally

When You Should Seek Professional Help

You need legal assistance if:

• You are drafting a rental contract
• A dispute arises
• A tenant stops paying rent
• A landlord violates privacy
• You want to rent property through Airbnb or long-term
• You’re unsure which legal framework applies

Proper legal structure prevents costly misunderstandings.

FAQ

Is a 3-year lease mandatory?

No—but if no term is specified, the contract defaults to a 3-year duration.

Can landlords raise rent at any time?

No. They must follow legal guidelines and contract terms.

Can a landlord evict a tenant for selling the house?

No—unless the contract includes a clause allowing non-renewal for this reason.

Are security deposits capped?

Yes, one month of rent unless contract specifies damages beyond wear.

Do Airbnb rentals follow Ley 7527?

No. They follow tourism and commercial rules.

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If you need a legally sound rental contract, eviction guidance, or tenant/landlord rights clarification, we can draft or review documents, enforce legal protections, and help you navigate Costa Rica’s rental system safely.