If you’ve ever thought about taking out a loan, renting a home, or investing, you’ve probably heard of the term security deposit.
In Costa Rica, in terms of rental of homes, premises or warehouses, it is an amount equivalent to the amount of a monthly rent that the tenant delivers to the landlord, generally together with the first payment, in order to secure the agreement and other expenses.
Its purpose is to ensure that the previously agreed obligations are met where the money and interests of the lessor are protected, since it is an efficient tool for risk reduction.
How is the price set?
The value of a security deposit in Costa Rica generally corresponds to an amount equal to 1 or 2 months of the fixed rent. This deposit is made together with the first rental payment.
There is nothing more beneficial and constructive in a professional and business environment than trust. Once you opt for a security deposit, both parties feel committed to abide by the agreed terms. So it helps build trust and collaborative relationships between all parties involved.
Other uses of a security deposit:
- Loans: Opting for a security deposit is common for loans where lenders are trying to reduce risk.
- Investments: Serves as a prevention tool to ensure compliance with trading conditions and to protect investors and counterparties in case of default.
- Provision of goods and services: In professional service contracts or when purchasing high-value products, suppliers or vendors may require clients to pay a security deposit.
Benefits for the parties involved
If you want to know more about how to put your properties for rent and make this a profitable business over time, do not hesitate to contact our specialized Nativu advisors who can guide you on issues of renting, buying and selling properties throughout the territory of Costa Rica.
