Renting is always recommended, especially if you are new in Ecuador, it is advisable to explore your options with flexibility between the different cities in Ecuador, some options are Cuenca, Quito, Manta, Guayaquil, Otavalo, Cotacachi. The highlands can be your place but also the ocean life can be yours, Ecuador offers all that.
Over the years we have recommended our clients always rent a property at the beginning, it is a good way to know a city without the large commitment of investing in Real Estate.
After you do all on the list below:
1.- Search of a property (online, “Se Arrienda” signs or word of mouth);
2.- Confirm what is included with the rent payment (furnished, maintenance, utilities, cleaning, HOA fees, parking, storage unit, pool access, etc);
3.- Confirm if there is cellphone and internet signal;
4.- Negotiated on the price.
After the above-mentioned list, it is time to formalize the agreement with a contract, we recommend to have the contract signed before moving into the property.
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Leasing agreements normally are drafted by people with no experience or template you can get at the local pharmacy, even though you get some help to read the contract for you, it is important to understand the legal consequences of all of your duties as the renter of the property.
PERSONAL AND THIRD PARTIES RESPONSIBILITY
The renter or sub-renter is responsible not only for their own fault but also for their family, guests, dependents or caretakers.
RESPONSIBILITIES OF PENSION PAYMENT
(Art. 53 Tenancy Law, 1883 Civil Code)
The lessor is obliged to receive the lease pension that is offered in due time and to deliver the corresponding receipt to the renter
RESPONSIBILITY ON THE USE OF THE PROPERTY
(Art. 1879 Civil Code)
The renter is obliged to use the property according to the terms of the contract, and may not, consequently, use the property for anything else other than agreement, for example, if it is for residence, it cannot be used for commercial purposes.
(Art. 1881, 1868, 1911, 1912 and 1913 Civil Code)
This is perhaps one of the most important points, down the road, this is the cause of conflict and misunderstanding between the landlord and the renter, for that reason we strongly suggest to understand this part of the rental laws in Ecuador.
Legally the renter is obligated to make locative repairs (Reparaciones Locativas), within the laws of Ecuador these are defined in general as those damages that ordinarily occur due to the fault of the renter or its dependents, such as wall or fence, glass breakage, etc.
SPECIAL NOTE: The Landlord is obligated to keep the property in good condition, this means, making all necessary repairs, except for the Reparaciones Locativas (Locative Repairs).
But if the Reparaciones Locativas (Locative Repairs) were caused by acts of force majeure or fortuitous event, or the poor quality of materials, or defects in the construction of the property, then there will also be the landlord responsible for those repairs.
The Reparaciones Locativas (Locative Repairs) to which the renter is obligated, will be made to keep the property in the same good condition as it was when the renter received the property; although the renter will not be responsible for the damages that come from the legitimate time and use
LEGAL REPAIRS LIST - RENTER`S RESPONSIBILITY:
1. To preserve the interior integrity of the walls, ceilings, pavements, and pipes, replacing stones, bricks, and tiles that break or dislodge during the lease;
2. To replace: on windows, doors any broken glass;
3. To keep doors, windows and locks in functioning condition.
4. To keep clean: walls, pavements and other interior parts of the property
5. To keep wells, ditches, and pipes clean and to sweep the chimney (if applies).
6. To repair the damages caused on the property, or the drinking water pipes, electricity, and toilet services, will be obliged to repair immediately, at the renter expense, if the tenant is responsible for those damages.
FINE FOR NON COMPLIANCE
In case of non-compliance with the aforementioned, the landlord will entitle to request from the renter a compensation for damages and immediate termination of the lease contract cease the lease, if the case is very serious..
It is important to know how to differentiate what type of repairs the Landlord is obligated to, and those the renter s obligated to as well; Basically the renter is obligated to maintain in good condition the property and delivery back to the Landlord in the same condition that the renter received it, considering the normal wear of the use of the property; on the other hand, the Landlord is obligated to make the repairs of the damages on the structural, hydrosanitary, electrical installations damage as long as it is a product due to construction defects, but not due to their improper use, just make sure the contract it says the above mentioned.
(Art. 1876 Civil Code) .- If the renter makes indispensable non-locative repairs (Reparaciones No Locativas), the renter must immediately inform the landlord, as long as the origin of these repairs has not been the fault of the renter, meaning the renter was not responsible for those damages.
The landlord once has knowledge of these indispensable non-locative repairs (Reparaciones No Locativas), the landlord must reimburse the renter for the expenses in such indispensable non-locatives repairs (Reparaciones No Locativas).