Costa Rica is approaching 3 months since the first confirmed caseof a Covid-19 positive person in the country. Since then everyone has lived a new reality, which has impacted everyone’s life in terms of education, commerce, tourism and clearly health.
The real estate world has not been the exception, for which we inform you about the proposals that have been raised by the Minister of Housing, Irene Campos, regarding payment arrangements and moratoriums on rents.
If you are a landlord or tenant, the following information may be helpful to you.
Firstly, it is important to clarify that the following guidelines are part of a draft project to be effective during the crisis, however, it has not yet been approved. If this is the case, the best advice is to be aware of the official media by the Presidency and the different Ministries of the country, such as, for example, the press conference that is broadcast daily by various television channels.
Types of moratoriums according to tenant situations
According to the newspaper La Nación, the moratoriums on specific rentals are as follows
- The lessee does not receive any salary, for dismissal or work suspension: in this case, an official certification from the employer must be presented explaining the situation. If you are a self-employed person, you must demonstrate the reduction of your income through VAT declarations. Once the case is analyzed, both parties must sign a contract, which stipulates that the moratorium would be 100%. With a maximum term to refund the money to the owner of the home or business premises, of 6 months.
- The lessee had a reduction of his salary of 50%: in the same way, the respective legal documentation must be presented that confirms said salary reduction, but the moratorium will be for half the rent, the unpaid fees must be reimbursed maximum in October 2020
- The lessee had a reduction of less than 50%: here it will be necessary for both parties to assess, negotiate and reach an agreement, the unpaid installments must be refunded maximum to July 2020
These are the project’s overriding proposals, along with the suspension of contract increases and evictions. Hoping to alleviate the concerns and improve the life quality for Costa Ricans, who have a duty to stay home.
Although the situation is complicated, since landlords also require income from their rentals, these are times when people are asked for patience and tolerance.
