Sunday, April 19, 2020

Delaying Rent Payments Due to the Coronavirus in Costa Rica?

How will those without income pay for rent of their homes or shops? After two weeks of looking at this issue, 27 deputies signed off on a proposal for three months of moratorium on rentals. The tenants would later have to pay the money owed by January 31, 2021.

The proposal has met criticism by some, especially because this will greatly affect those whose only income is from rentals. It has yet to be sent to a vote in Congress.

This would only benefit tenants who can prove that their income has been affected by covid-19. This can be demonstrated by proof of suspension of contract, dismissal, or reduction in the work day from the employer. Independent workers can show the declaration of value added tax. Informal workers can file an affidavit with the testimony of two unrelated people.

If the rental is for a business, the tenants can show the landlord either a sanitary closure order or that their income has decreased significantly.

Whether for a home or a business, if the amount of income lost is 100%, they will have three months of not paying rent (to be paid back later on). If the income lost is 50% to 99%, they will pay half rent. If the amount is between 20% and 50%, then the contract will be based on a payment proportional to the amount lost.

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