If it is time to rent a property, be it an investment property, or a privately owned property in Costa Rica, there are now many ways to choose to rent it out to locals and international rental clients.
Learn how to rent a property in Costa Rica by owner or by a rental agent, using cost-effective methods that fit the needs of the renter, and meets the buyers expectations.
How to find and rent a property located Costa Rica Property
Renting a property in Costa Rica, that is listed via a rental agent or one that is for rent by owner (FRBO), there are some things to consider when renting a property in Costa Rica:
Owners or agents can advertise their properties locally, or on "for rent websites", especially international property listing sites that provide rental options. By advertising locally, nationally, and internationally the owner or agent of the property or properties will increase their opportunities.
An agent can help you find a property, negotiate the rental contract, and manage the paperwork. You can expect to pay extra fees and deposits, usually the equivalent of one month's rent.
Here are some other tips for renting a property in Costa Rica, with starting your research early and use multiple platforms to look at properties for rent in Costa Rica.
Set a budget, and decide on the size of the accommodation you need, based on the number of persons who will be renting, and their comfort factors.
Check listings regularly and get notifications for new ones that may be listed, and when you find a place you like, contact the owner or agent to arrange a viewing online or in person.
If you decide to rent directly from a landlord or owner, make sure that you research and negotiate the rental agreement and check the contract period. Use a lawyer if uncertain of the legal contract, or make sure the company listing the property if legitimate.
How to rent out a property located Costa Rica Property
Renting out a property in Costa Rica involves several steps, from legal considerations to finding tenants.
Before renting out your property, you need to understand the legal framework surrounding rentals in Costa Rica, and ensure that the property title is clear, free from disputes, and in your name.
A legally binding contract should be in place, and hiring a lawyer to draft or review the contract to ensure it complies with local laws is a good idea.
If you plan to rent the property to tourists (short-term rentals), you need to understand tourism regulations and may need to register your property with Costa Rica Ministry of Tourism.
Rental income may be taxable in the Costa Rica, and the exact rate might depend on the amount of income, but for rental properties, and if renting to foreigners, there might be withholding taxes on the rent.
Finding tenants is essential, and how you market your property can make a big difference, and if you want to outsource the renting process, consider hiring a local real estate agent who may be able to help find tenants, market the property, and ensure legal compliance.
For long-term rentals, especially with local tenants, speak with previous landlords or employers to ensure the tenant is reliable, and you might be able to request a credit report from a credit agency.
Typically, landlords request a security deposit equivalent to 1-2 months' rent which is refunded at the end of the lease if the property is in good condition.
Once you find a tenant, it's important to have a written contract that can specify the rent amount, payment terms (monthly/quarterly), and due dates, and outline who is responsible for maintenance and repairs.
If you're looking to rent your property as a vacation home or on a short-term basis some areas require a special license for short-term vacation rentals.
If you don't live locally or prefer to avoid the hassle of managing the property, you can hire a property management company which is very useful for short-term rentals, where the turnover can be higher, and you may not be able to manage the property remotely.
Rental rates vary depending on the location, size, and condition of the property, and the most common method of payment is through a local bank transfer or international wire transfer.
Consider getting property insurance, especially for natural disasters as this helps protect your investment in case of damage or loss.
Rentals and Costa Rica Properties
Whether you choose to rent on your own or through an agent, it's highly recommended that you consult with a lawyer specializing in Costa Rica property rental laws. They will help ensure that the rental contract is properly prepared.
Renting by owner can be more cost-effective but requires more effort and knowledge about local laws. Hiring a rental agent simplifies the process but involves commission fees. If you're new to the process or the legal landscape, hiring an agent or at least consulting with a lawyer is always a good idea to ensure everything goes smoothly.
Note if selling or renting in Costa Rica this information is purely a starter guide, and legal advice should always be sought.
Popular areas of the Costa Rica with International Renters:
