How long does a lease last in Costa Rica?
Anyone renting a home to live in Costa Rica tends to ask how long the commitment lasts and what happens when it ends. The answer does not depend only on what the paper says: article 70 of the Ley General de Arrendamientos Urbanos y Suburbanos (Law 7527) sets a minimum term of three years. This guide explains, for tenants and landlords, how that term is counted, when it renews on its own, what happens with seasonal rentals and what can be agreed without losing rights.
How long does a lease last under the law?
The starting rule is simple. Under Article 70 of Law 7527, a lease cannot last less than three years. That applies to the home you rent in Heredia, in Pérez Zeledón or in Limón, because the law governs every lease of real property in Costa Rica. For anyone browsing homes for rent in Costa Rica, this means the term of the relationship is not negotiated downward, even if the listing or the owner mentions a shorter term.
And if the lease sets a shorter term or none at all? The same Article 70 answers: in both cases the lease is deemed agreed for three years. If the document says one year, the law reads it as three. The form does not matter either: articles 2, 3 and 4 of Law 7527 establish that the law governs every lease of real property, oral or written. A spoken agreement with the owner is covered by the same rules as a lease signed before a notary.
The term is not counted from the signing or from the first payment, but from the day the tenant receives the property, as Article 70 says. If you sign in one month and receive the keys weeks later, the three years start running with the handover. That is why the prudent step is to put that date in writing, in the lease or in a handover record signed by both parties, together with photos of the condition of the home. That date will be the basis for working out the end of the term and the deadline for the non-renewal notice.
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How is the lease renewed if nobody gives notice in time?
Renewal happens without anyone signing a new document. Article 71 of Law 7527 provides 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, the owner's silence amounts to another three years of lease under the conditions already in writing.
The rule puts the burden of notice on the landlord. If you are the owner and do not want to continue with the same tenant, the calendar matters more than the intention: a notice that arrives less than three months in advance does not meet what Article 71 requires. If you are the tenant, this rule gives you stability, because as long as the owner does not give notice in time, the lease continues. That moment also helps you decide whether to renew or to compare with homes for sale in Costa Rica.
- Find the date the tenant received the home: the term runs from there.
- Work out the day the three years of the lease are completed.
- Mark on your calendar the date that falls three months before that end date.
- If you are the landlord and do not wish to renew, give notice before that date and keep proof that the tenant received it.
- If nobody gives notice in time, count on a new three-year period on the same terms.
When does the law not apply to a seasonal rental?
Not every short rental follows Law 7527. Its article 7 excludes hotels, guesthouses and similar establishments, as well as tourist homes let by the season in areas that the Costa Rican Tourism Institute (ICT) declares suitable for tourism through a resolution published in the official gazette. The exclusion for homes combines several conditions at once: the tourist purpose, the letting by the season and an area declared by the ICT through a published resolution.
For rentals to tourists there is also the framework law on non-traditional lodging (Law 9742). According to opinion AL-A-0173-2024 of the ICT legal office, which reads articles 2 and 3 of Law 9742 together with article 7 of Law 7527, when a tourist rental for periods of between 24 hours and 1 year falls within Law 9742, the parties' rights and obligations are those of that law and not those of Law 7527. That opinion adds that the providers' register of Law 9742 is the procedure by which the ICT carries out the exclusion in article 7.
What it means for you: if you rent a home to live in it, even on the Caribbean coast or near a beach in Guanacaste, the word season in the lease is not enough on its own; what counts is whether the case meets the conditions of those exclusions. If it does not, Law 7527 applies, as it governs every lease of real property. If you are unsure whether your lease qualifies, consult a lawyer or notary before signing, especially if the owner proposes a short term.
What can be agreed without the tenant losing rights?
Flexibility has a clear limit. Articles 2, 3 and 4 of Law 7527 state that it is a public-order law and that the rights it gives tenants cannot be waived. The practical consequence is that a clause that contradicts its mandatory rules is treated as unwritten: it is read as if it were not on the paper. Signing does not amount to waiving, even if the tenant accepted the text without objecting.
The term is the clearest example. A clause that sets one year clashes with Article 70, and the law deems the lease agreed for three years, counted from the handover. The same goes for the form: a written lease is not needed for the tenant to have those rights, because the law also governs oral leases. Whoever proposes a short lease thinking it will get the home back sooner finds that the law reads a different term.
There is, however, one point where the law itself opens the door to an agreement: the tenant's early exit. Article 72 of Law 7527 begins with unless otherwise agreed in writing, so the parties may agree in writing on a different rule for that exit. For everything else, which clauses are valid and which are not, the prudent step is to review each one with a lawyer or notary before signing.
How can you end the lease early if plans change?
A job transfer, a change in the family or a purchase can force you to leave the home before the three years are up. Article 72 of Law 7527 covers that case: unless otherwise agreed in writing, the tenant may end the lease by giving the landlord three months' notice, without changing the other obligations the lease created. The notice opens the exit, but does not change the rest of what was agreed.
- Review your lease and check whether it contains a different written agreement on early exit.
- If there is none, give the landlord three months' notice.
- Give the notice in writing and keep a copy with the date the landlord received it.
- Arrange the handover of the home and record its condition, as you did when you received it.
If the change of plans is about budget, the notice period gives you time to search calmly. In that case it makes sense to review cheap homes for rent in Costa Rica and agree in the new lease on a handover date that matches the end of the notice, so you do not pay two rents at once. Remember that the new lease will also count its term from the day you receive the home.
What should the lease say about term and renewal?
Although the law covers oral leases, a written lease avoids disputes over dates. The guide on what a rental agreement must say and what is void goes over the whole document; for term and renewal, these are the points we would review before signing.
| Topic | What to write | Why |
|---|---|---|
| Term | The lease term, not below three years | A shorter term is deemed agreed for three years |
| Handover date | The day the tenant receives the home | The term is counted from the handover |
| Non-renewal notice | How and to which address notice is given | Without the landlord's notice three months ahead, the lease is extended |
| Early exit | If a different rule is agreed, put it in writing | The law allows a written agreement otherwise |
| Type of rental | Whether it is a home or a seasonal tourist rental | The tourist exclusions have their own conditions |
A lease that repeats what the law says loses nothing and spares both parties from interpretations. What does not make sense is writing shorter terms or waivers of tenant rights: a clause that contradicts the mandatory rules is treated as unwritten, so it does not achieve what it seeks and tends to create conflicts when the lease ends.
What we would do before signing or renewing
- Record the handover date of the home in the lease or in a record signed by both parties, because the term runs from that day.
- Mark on the calendar the date that falls three months before the end of the term, whether you are the tenant or the owner.
- Before the three years are up, compare what you pay in rent with home prices in Costa Rica if you are thinking of buying.
- If budget is the limit for that step, also review cheap homes for sale in Costa Rica.
- Consult a lawyer or notary before signing a seasonal rental in a tourist area.
Frequently asked questions
Is a lease signed for one year valid?
The law does not treat it as a one-year lease. Under Article 70 of Law 7527, if a lease sets a term shorter than three years, it is deemed agreed for three years, counted from the day the tenant receives the home. In addition, the rights the law gives tenants cannot be waived, and a clause that contradicts its mandatory rules is treated as unwritten.
Does an oral lease also last three years?
Law 7527 governs every lease of real property, oral or written, and Article 70 sets the three-year minimum: if the lease sets a shorter term or none at all, it is deemed agreed for three years. A spoken agreement falls within those rules. Since the term is counted from the handover of the home, the prudent step is to keep proof of that date, even if there is no signed document.
Until when can the landlord give notice of non-renewal?
First find the date the tenant received the home: the three years of the lease run from there. Article 71 of Law 7527 requires the landlord to give notice of the decision not to renew at least three months before that term ends. If the landlord does not, the lease is extended for a new three-year period on the same terms.
Does a weekly rental to tourists follow Law 7527?
It depends on the case. Article 7 of Law 7527 excludes tourist homes let by the season in areas that the ICT declares suitable through a resolution published in the official gazette. And according to the ICT legal office, when a tourist rental for periods of between 24 hours and 1 year falls within Law 9742, the parties' rights and obligations are those of that law. To know whether your case fits, consult a lawyer or notary.
This guide summarizes residential rental practice in Costa Rica based on Law 7527 and the cited opinion of the ICT legal office, and it was reviewed in November 2026. It does not replace the advice of a lawyer or a notary, who can review your lease and your specific case before you sign, renew or end a rental.
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