How a lease ends and when an eviction applies
In Costa Rica, a lease does not end when one of the parties decides so overnight. It ends when the term expires with timely notice, through the tenant's notice, by agreement between the parties or through an eviction the landlord requests by means of eviction proceedings (desahucio). This guide explains each route, the deadlines the law sets and what the landlord and the tenant must do to close the lease in an orderly way and without surprises.
In what ways does a lease end?
The starting point is the term. Under Article 70 of the Ley General de Arrendamientos Urbanos y Suburbanos (Law 7527), a lease cannot last less than three years: if it sets a shorter term or none at all, it is deemed agreed for three years, counted from the day the tenant receives the property. That is why a lease signed 'for one year' does not expire, for the purposes of that rule, after 12 months. Before discussing how a lease ends, it is worth knowing when its term began to run: the date that matters is the day the house was handed over, so it is worth having it written down and documented.
The second point is the extension. Article 71 of Law 7527 says that, if the landlord does not notify the tenant, at least three months before the term ends, that the lease will not be renewed, it is extended for a new three-year period on the same terms. In practice, many leases in Costa Rica continue for years simply because nobody gave notice in time. For the landlord, that silence has a clear cost: he is bound to the same terms for a full period. For the tenant, on the other hand, the extension provides stability as long as he complies with what was agreed.
With those two rules in view, the usual ways to end a residential lease are four:
- Expiry with notice: the landlord gives timely notice that the lease will not be renewed and it ends when the term expires.
- Tenant's notice: the tenant announces he will leave the house with the notice the law sets or the one agreed in writing.
- Agreement: both parties agree in writing on a move-out date and the terms of the handover.
- Eviction: the landlord asks for the lease to be terminated through eviction proceedings because of a breach by the tenant.
An agreement is usually the simplest route when both parties want to close the lease early. The prudent approach is to put it in writing and have both sign it: the move-out date, the condition in which the house will be returned, how outstanding payments will be settled and what happens with the deposit. If the agreement changes something important in the original lease, it is advisable to have a lawyer or a notary review it before signing. The clauses a lease may contain, and those that are not valid, are explained in the guide on the rental agreement in Costa Rica: what it must say, what is void.
Advertisements
How does each party give notice that the lease is ending?
For a landlord who does not want to renew, the rule is the one in Article 71 of that law: he must notify the tenant that the lease will not be renewed at least three months before the term ends. The safest approach in practice is a signed letter, delivered in person with a receipt dated and signed by the tenant, or sent by a means that leaves proof of delivery. Before writing it, check the date on which the tenant received the house and count the three years from there, or the extension period that is running, so the notice does not fall short.
For a tenant who will leave the house, Article 72 of Law 7527 provides that, unless otherwise agreed in writing, he may end the lease by giving the landlord three months' notice, without changing the other obligations the lease created. The prudent approach is to keep paying every month until the handover and to check with a lawyer what remains outstanding if the lease says something different. Three months also give room to look calmly for the next home among the homes for rent in Costa Rica and to plan the move without being caught between two leases.
| Who gives notice | Advance notice | Source | If notice is not given in time |
|---|---|---|---|
| Landlord who will not renew | At least three months before the term ends | Article 71 of Law 7527 | The lease is extended for three years on the same terms |
| Tenant who will leave the house | Three months, unless otherwise agreed in writing | Article 72 of Law 7527 | Review the lease and consult a lawyer |
The letter to end the lease serves both parties and does not need complicated language. What matters is that it is clear who gives notice, what is decided, from when, and that there is proof the other party received it. These are the steps we would follow to write it:
- Write the place and date, and the full name and ID number of the person signing and of the person receiving it.
- Identify the house by its exact address and the date of the lease.
- State the decision in a single sentence: that the lease will not be renewed when the term ends or that you will leave the house, and the date of the handover.
- Mention the basis for the notice: the lease clause or the article of the law that applies to your case.
- Propose a date to inspect the house together and hand over the keys.
- Sign the letter, keep a copy and ask the other party to sign a dated receipt; if you cannot deliver it in person, use a means that leaves proof of delivery.
What happens to the tenant if the landlord sells the house?
Selling a rented house does not end the lease. Article 75 of Law 7527 provides that, if someone buys a rented property, the lease stays in force, and the tenant must pay the rent to the new owner once the owner notifies him of the transfer by handing over the certificate that proves it. For the tenant, the sale does not change the term or the conditions he already had: he stays in the house under the same lease. What changes is whom he pays, and that change depends on the buyer handing him the certificate of the transfer.
For the tenant, the prudent approach is not to change the account he pays into just because someone says he bought the house. Ask for the certificate, keep it with your lease and keep every proof of payment, both to the previous owner and to the new one. If you receive conflicting instructions from the two parties, put the question in writing and seek a lawyer's advice before making the next payment. An orderly record of payments is your best defense if a disagreement about any month arises later.
For the buyer, the rule weighs on the decision. Among the homes for sale in Costa Rica there are properties offered with a tenant, and the buyer takes on the lease with its term and its possible extension. Before signing, ask for a copy of the lease and the date on which the tenant received the house, and compare the asking price with home prices in Costa Rica in the same area, knowing that you will not be able to move in right away. An offer that appears among the cheap homes for sale in Costa Rica may have exactly that: a lease in force behind it.
When can the landlord request an eviction?
Articles 114 and 121 of Law 7527 provide that the landlord may ask, through eviction proceedings (desahucio), for the lease to be terminated if the tenant fails to pay rent, does not keep the property in good condition, changes its use, refuses inspection or uses it abusively, among other grounds. These are breaches by the tenant, and they are not the only grounds for those proceedings. Changing the use means, for example, using a house rented as a home as a business premises; abusive use means using it in a way that damages it or goes against what was agreed.
For the most common ground, non-payment, Article 58 of that law matters: rent is paid monthly unless otherwise agreed, and the tenant may pay within seven calendar days after each period falls due; in addition, in a residential lease the landlord cannot demand more than one month's rent in advance. For the landlord, this means keeping an orderly record of dates, amounts and receipts before talking about arrears. For the tenant, it means always paying by a method that leaves a trail and keeping every receipt.
Eviction proceedings also apply if the lease expired after a timely non-renewal notice and the tenant does not hand over the house. In that case, or after a serious breach, the prudent approach is for the landlord to consult a lawyer on how to bring them, rather than changing locks, cutting off utilities or removing belongings on his own. Those measures usually make the conflict worse. For a tenant who receives a claim, the sensible course is to reply in writing, gather his receipts and seek legal advice as soon as possible.
What should be checked and documented before returning the house?
The handover is when most disagreements arise, and almost all of them can be avoided with preparation and paperwork. The idea is that, on the day the keys are returned, both parties see the same thing and put it in writing. This is the list we would follow, whether you are the tenant leaving or the landlord receiving the house:
- Reread the lease: what it says about the condition at handover, the deposit, repairs and painting.
- Find the inventory or the photos from the start of the lease, if they exist, to compare with the current condition.
- Repair the damage caused during the lease and clean the house, including the kitchen, bathrooms and yard.
- Pay the utilities up to the move-out date and keep the latest water, electricity and internet receipts.
- Remove all your belongings before the final inspection.
- Walk through every room of the house together and note what you find, good or bad.
- Sign a handover record with the date, the meter readings, the condition of each room, the keys and remotes returned and anything still pending.
The record is worth as much as the handover document. Take photos and videos of every room on the day of the handover, with the date visible in the file, and keep them together with those from the start of the lease. Ideally, each party keeps a signed copy of the record and, after the meeting, one of them sends a message or an email summarizing what was agreed: that leaves a dated record the other party can confirm. If either party cannot attend, it is advisable to sign an authorization so another person can receive or hand over the house on their behalf.
For a tenant already preparing the move, this is also the time to do the math for the next lease: the first month, the deposit the new lease asks for, the move and the utility connections. The guide on how much it costs to rent a house in Costa Rica organizes those costs so that leaving one house does not leave you without room to move into the next.
What we would do when closing a lease
- As landlords, we would write down the date the tenant received the house and, if we are not renewing, we would give written notice at least three months before the term ends.
- As tenants, we would give written notice of departure with the advance notice the law sets and would also start searching among the cheap homes for rent in Costa Rica.
- Before buying a house with a tenant, we would ask for the lease, the handover date and the proof of payments to know what we are taking on.
- On handover day, we would walk through the house with the other party and sign a record with photos, meter readings and keys.
- In the face of a serious breach or a house that is not returned, we would consult a lawyer before taking any action.
Frequently asked questions
How can a disagreement with the landlord be resolved when moving out?
Start with the paperwork: the lease, the handover record, the photos from the start and the end, and the receipts for payments and utilities. With that at hand, raise the disagreement in writing, in specific terms (which point, what you propose and why) and allow a reasonable time for a reply. Many disagreements over damage or cleaning are settled with an agreed repair or reduction. If the conversation goes nowhere, it is advisable to seek support from a mediator or a lawyer before the conflict grows, rather than withholding keys or payments on your own.
Does the tenant have to leave if the house is sold?
The sale, by itself, does not end the lease. As this guide explains, the lease stays in force with the new owner, and the tenant starts paying him once he notifies the transfer with the certificate that proves it. In the meantime, the prudent approach is to keep the lease, the receipts and any communication about the sale. If the new owner proposes an early departure, any agreement should be put in writing and, if in doubt, reviewed with a lawyer.
Does a lease signed for one year expire after 12 months?
Not under the minimum-term rule explained at the start of this guide: a lease cannot last less than three years, and if it sets a shorter term it is deemed agreed for three years, counted from the day the tenant receives the house. That is why, before giving or expecting a non-renewal notice, it is worth counting the term from the handover and not from the length written in the lease.
Is a text message enough to give notice that the lease is ending?
This guide recommends a signed letter, with a dated receipt or sent by a means that leaves proof of delivery, because what matters is being able to show that the other party received the notice in time. Whether a message is enough in your case depends on what your lease says and on the circumstances, so, if in doubt, consult a lawyer or a notary before relying on a message alone.
This guide summarizes practice in Costa Rica on how a residential lease ends and cites the rules of Law 7527 in force in November 2026. It does not replace the advice of a lawyer or a notary, who can review your lease and the circumstances of your case before you give notice, sign an agreement or start a claim.
Advertisements
More in Contract Termination
Rental Guides, Contract Termination
Eviction for non-payment: deadlines, grounds and options
Rental Guides, Contract Termination
Lease termination letter: notice, content and proof
Rental Guides, Contract Termination
How to hand back a rented home when the lease ends
Rental Guides, Contract Termination
How to handle the return of the deposit at the end of the rental.
Most viewed in Rental Guides
Rental Guides, Requirements for Renting
How to rent a house in Costa Rica: steps and requirements
Rental Guides, Rental Contracts
Rental deposit: what it covers and how it is agreed
Rental Guides, Rights and Obligations
Tenant rights in Costa Rica: what to know before signing
Rental Guides, Rights and Obligations
Tenant rights regarding repairs not made by the landlord