No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsletterRent hikes capped, indexed to inflation under bill approved by lawmakers

Rent hikes capped, indexed to inflation under bill approved by lawmakers

The Legislative Assembly on Tuesday evening approved in a second and final round of debate a bill that sets a new calculation method for annual increases in rent for houses and apartments.

The amendment states that hikes in rent contracts, starting next year, will be equal to the average inflation rate recorded over the previous 12 months — the interannual inflation rate — as reported by the National Institute of Statistics and Census (INEC).

The law also caps rent increases at 10 percent, although if inflation exceeds that rate, the Housing Ministry could allow a higher increase.

Current rental law establishes 15 percent as the maximum figure for yearly hikes, in case tenants and landlords don’t reach an agreement on a lower percentage.

Bill #18,067, “Amendment to Article 67 of the Rent Law,” received 44 “Yes” votes from the Assembly’s 57 legislators.

Presidency Minister Sergio Alfaro said the approval of the bill will significantly contribute to creating conditions of greater social equality. He also said that an update in the calculation method for rent hikes was sorely needed.

“Low inflation rates recorded in recent years show that 15 percent hikes in rent are excessive, and many landlords have been abusing that provision of the law by assuming that it was the automatic hike percentage,” Alfaro said.

The bill now needs to be signed into law by President Luis Guillermo Solís and then will be published in the official newspaper La Gaceta.

The Rent Law was originally passed in August 1995, during a period when the country’s inflation rates, according to the Central Bank, averaged over 20 percent.

A Broad Front Party lawmaker from the 2010-2014 legislative period, José María Villalta, filed the initiative to amend the law, but it failed to move forward in the Assembly’s agenda.

Lawmakers from the current period brought back the proposal this year. The bill was passed in the first round of voting March 17 with the support of 39 lawmakers.

According to 2015 INEC records, there were 1,436,120 houses in Costa Rica, of which 263,206 were rentals.

Trending Now

Costa Rica U-17 Women’s Team Earns Historic Draw vs Brazil

Costa Rica's under-17 women's national soccer team marked a milestone in their history with a 1-1 draw against Brazil during the FIFA U-17 Women's...

Costa Rica Shaken by a Quake with No Injuries Reported

A strong earthquake struck near Quepos late last night, sending tremors across parts of our country and even into our neighbor Panama. The quake,...

Why This U.S. Expat in Costa Rica Chooses Local Over Headlines

In the weeks leading up to my trip to the US, I scanned several news sites both left-leaning and right-leaning to better inform myself...

Marriott Expands in Costa Rica with Adventure-Focused Hotel

Marriott is set to grow its footprint in Costa Rica by opening a new hotel in the Central Pacific area next year. The Santa...

Tourist Numbers Dropped in Costa Rica During 2025’s First Seven Months

Costa Rica's tourism took a hit in the first seven months of 2025, with visitor numbers dropping compared to the previous year. By the...

Latin America Questions US Boat Strikes in the Drug War

US military strikes that Washington claims have targeted "narco-terrorists" ferrying drugs to American soil are having little to no impact on Latin America's bustling...
L. Arias
L. Arias
Reporter | The Tico Times |
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica