[vc_row][vc_column][vc_column_text]
ADJUSTMENT IN HOUSING RENTAL PRICES
[/vc_column_text][us_separator][vc_column_text] In recent months, we have seen an increase in the prices of the basic basket, fuels, raw materials, public services, and even the dollar has suffered a rise that clearly affects the entire population in general. In light of the above, it was to be expected that this increase would also affect housing tenants. Through resolution No. DMVAH-0011-2022-MIVAH, the Ministry of Housing and Human Settlements of Costa Rica established that the maximum annual adjustment to housing rent for the month of July 2022 is equivalent to 11.11%, being the highest adjustment in the last 13 years in Costa Rica. The foregoing, based on and in accordance with the provisions of Section 67, paragraph b) of the General Urban and Suburban Leasing Law No. 7527, which establishes that the Ministry is responsible for establishing the additional percentage increase to be applied to residential rent in the event that the accumulated inflation rate for the twelve months prior to the expiration of each year of the lease contract, as published by the National Institute of Statistics and Census, exceeds ten percent. It should be noted that this adjustment does not apply to rents whose payment has been agreed in a foreign currency or to commercial leases, as these contain different regulations. Given a scenario where landlords were affected during the pandemic due to tenant moratoriums, payment arrangements, establishment closures, and other issues, an adjustment in the rental price of residential rent is appropriate; however, this adjustment applies as of the payment period following the one in which the tenant is notified of the readjustment. A certification from the INEC (National Institute of Statistics and Census) and a copy of the official gazette's publication of the established increase must also be provided. What happens if the tenant disagrees with the increase? The regulations establish that in this scenario, the tenant may make a judicial deposit of the rent amount prior to the increase, and the release of said payment is subject to the outcome of the eviction process initiated by the landlord. Under no circumstances do the regulations contemplate non-payment of the rent, so it is necessary to seek proper advice to avoid incurring grounds for eviction. In addition, it is important to remember that the parties may agree to a lower price adjustment; however, this must be by mutual agreement and must be agreed upon in writing, in order to protect both parties in the tenant relationship. If you require advice on rental matters, you can contact us at:anarvaez@lexincorp.comor call 2283-3070 to make an appointment. [/vc_column_text][us_separator][vc_column_text]Written by: Licda. Alexa Narváez [/vc_column_text][/vc_column][/vc_row]
