Expats who rent their personal residence in Ecuador often get hosed because they don't know the laws on rentals, according to real-estate entrepreneur Dom Buonamici.
Dom has identified these requirements in particular....
1. A rental contract must be for two years, no more/no less, for it to be legally valid.
2. A rent increase is not allowed until the end of the two-year period.
3. The rent increase after two years may not be for more than ten percent.
4. If the landlord wants to take back his place, he must give 60 days notice.
Search at YouTube.com....
3 ways gringos get screwed
Renting in Ecuador: What You Probably Didn't Know
cccmedia
26 March 2022 06:42:09
10198
SLBergholt
18 April 2022 19:20:24
34
So the hundreds of posts for rentals with a one year lease are all invalid?
OsageArcher
18 April 2022 19:54:07
1526
According to the law, yes, the tenant is entitled to a two year contract - Ecuador's Ley de Inquilinato (Law of Tenancy/Tenant's Rights) clearly states:
Art. 28.- Plazo del contrato escrito.- El plazo estipulado en el contrato escrito será obligatorio para arrendador y arrendatario. Sin embargo, en todo contrato de arrendamiento tendrá derecho el arrendatario a una duración mínima de dos años, excepto en los siguientes casos:
A rough translation:
Art. 28.- Length of written contract.- The length stipulated in the written contract shall be required for the landlord and tenant. Nevertheless, in all rental contracts the tenant shall have the right to a rental of a minimum duration of two years, except in the following cases: (a list of exceptions is given)
Here is the PDF text of the Ley de Inquilinato:
Further, this article states and gives an example, of how much rent may be charged as well as other important information about the rights and responsibilities of tenants:
Here's two paragraphs with the rent amount example, followed by a rough translation:
Cuánto se debe cobrar por alquiler
La Ley de Inquilinato establece que el valor mensual por arrendamiento no será mayor a la doceava parte del 10 % del avalúo comercial de la propiedad, precio que está en el Catastro Municipal.
Por ejemplo, si un predio está avaluado en 50 000 dólares, se obtiene el diez por ciento: $5000. Eso se divide para doce (los meses del año), lo que da 417 dólares aproximadamente. Ese sería el valor máximo que podría cobrar de alquiler.
How Much May Be Charged for a Rental
The Ley de Inquilinato establishes that the monthly value for rent may not be greater than the twelfth part of 10% of the commercial appraisal of the property, which price is in the Catastro Municipal (the land registry/records office of the city).
For example, if a property is appraised at $50,000, ten per cent is $5000. This is divided by 12 (months in a year), which gives approximately $417. That shall be the maximum value that could be charged for the rental.
*******************************************************
I do not know for sure but I suspect many foreigners who are not aware of these laws are being overcharged by their landlords...
nancyjo95
18 April 2022 20:30:54
5
How can we find out the assessed value of a property? Otherwise we would never know if we are being ripped off.
Never mind. I see above.
Ed2Head
30 April 2022 21:25:21
1
It is certainly helpful to know the laws, but if you confront a landlord with the "laws" he or she is simply going to find another under informed gringo and rent to them.
sischauf
30 April 2022 21:58:25
10
@cccmedia Thank you for this information. You are a gem!
I do have some questions, please.
Regarding the last item, does that mean- if the owner wants the the apartment back after the two years has expired or if the owner wants the apartment during the two years? It seemed to me to be 60 days before the end of the lease.
If a real estate agent writes a one year lease for a tenant, does that mean the lease is not valid?
cccmedia
30 April 2022 23:33:29
10198
Dear Sis,
If the validity of a lease is contested in court, a judge will decide.
I don't have the legal expertise to predict the outcome if a lease is contested under the circumstances you described.
If you or your family is potentially impacted by such circumstances, consider contacting an attorney. Many attorneys will consider you a potential client and provide a gratis answer to a question in at least one of these circumstances if they receive an email.
cccmedia in Quito
Listening
19 May 2022 02:00:10
17
1 bedroom with fireplace - 1 kitchen - 1 large living room - Separate toilets and showers.
When I see an ad for an apartment described like this, and saying 124 sq meters, am I to assume the apartment is shared, and the stated rent would be for 1 bedroom with fireplace, possibly private toilet and/or shower, and access to the kitchen and living room?
If not, how do I correctly read the ad?
cccmedia
19 May 2022 02:23:56
10198
Inferring from that ad that the unit has a shared bathroom or other shared spaces .. is a leap.
You would have to ask the owner/agent/advertiser .. to be sure.
As to a fireplace, there is no evidence in the ad that there is one. My apartment needs heat at night and on cold days. There is no fireplace in any of these condos, so my solution is space heaters.
cccmedia in Quito
cccmedia
19 May 2022 02:53:24
10198
Correction... I see the fireplace is now mentioned in the ad. The poster may have added it to the post while I was responding.
cccmedia
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