Rental contracts in Ecuador: what to sign and how a lease ends

A well-written lease prevents most problems between tenant and landlord. In Ecuador, leases of premises within urban limits are governed by the Tenancy Law (Ley de Inquilinato) and, where it is silent, by the Civil Code and the General Organic Code of Procedures (arts. 1 and 2). The law protects tenants: their rights cannot be waived (art. 22), so a clause that cuts them back is void even if it was signed. This guide focuses on the document: what it should say, when it must be registered and how it ends.

Verbal or written?

The law allows verbal or written leases (art. 27). But when the monthly rent exceeds one unified basic wage (salario básico unificado), the lease must be in writing and the landlord must register it before a notary within thirty days of signing; notaries keep a numbered, chronological file of those contracts (art. 29). Even when the rent is lower, a written lease is the best proof of what was agreed.

Registering the property and the maximum rent

Separately from the contract, the law requires landlords to enter their property in the municipal Lease Registry (Registro de Arrendamientos), with the landlord's details, the location and size of the premises, the services, the cadastral appraisal and, if furnished, the furniture inventory (arts. 8 and 9). The Lease Registry office — in Quito and Guayaquil a municipal office of its own; elsewhere the cadastre department — sets the maximum rent for each property and issues a certificate (art. 10).

That certificate matters: the monthly rent may not exceed one twelfth of ten per cent of the commercial appraisal recorded for the property in the municipal cadastre, and of the municipal taxes on urban property (art. 17); charging more than the set rent is sanctioned by the tenancy judge and the excess must be refunded (art. 19). And a landlord cannot sue a tenant without attaching the rent certificate or the registration declaration (art. 47). In Cuenca, for example, the Dirección General de Avalúos y Catastros issues the rent certificate (certificado de canon de arrendamiento) online at enlinea.cuenca.gob.ec. In other cantons, check with your municipality how it is done.

The term

A term agreed in writing binds both parties. Even so, the tenant is entitled to a minimum duration of two years, except for rooms in hotels, boarding houses or inns; lets to people who live elsewhere and are passing through; and premises for exhibitions, shows or other short-lived purposes (art. 28). A one-year residential lease does not take that legal minimum away from the tenant.

Rent increases

• For homes whose monthly rent does not exceed two salarios mínimos vitales, automatic increases may not be agreed during the minimum term; such a clause is treated as never written (art. 18).
• The landlord can ask the Lease Registry office to raise the rent after works that improve the premises (not routine maintenance or the services the law already requires) or once at least two years have passed since the last rent was set (art. 21).
• The tenant, in turn, can ask for a rent reduction if the premises are in poor condition through natural wear or causes the tenant is not responsible for (art. 23).

The deposit (garantía)

The Tenancy Law does not regulate the security deposit or set its amount. If one is paid, everything depends on the contract: write down how much it is, when it may be withheld (damage the tenant is responsible for, or unpaid rent) and how soon it is returned when the keys are handed back. Sign a handover record of the property's condition, with photos, on moving in and another on moving out. For questions about the deposit, check with a lawyer or notary.

Clauses to review before signing

• Who the parties are and which property it is, and proof that whoever lets it is the owner or is authorised (ask for the certificate of encumbrances or the deed).
• Rent, due date and how it is paid; the landlord must accept rent offered on time and give a receipt (art. 53).
• The term, bearing in mind the two-year legal minimum in art. 28.
• Use of the property: using it for a purpose other than the agreed one is a ground for termination (art. 30, letter d).
• Inventory and value of the furniture if let furnished; if missing, the law values the furniture's use at 25 % of the rent (art. 24), and in a home that part may not exceed the legal maximum rent (art. 25).
• Subletting and assignment: without written authorisation the tenant may not sublet or assign (art. 36), and homes may only be sublet occasionally for up to three months (art. 38).
• Who pays utilities and, in buildings, the service charges (alícuotas); the law does not settle it, so it must be written down.

How the lease ends

1. 1

   At the end of the term

   The landlord must give notice of the decision to end the lease at least ninety days before it expires (art. 33).

2. 2

   Before the term, only on a legal ground

   The landlord can demand early vacating only on the grounds in art. 30: two months' unpaid rent outstanding when the claim is served, risk of collapse, disturbances or brawls, illegal use or use other than agreed, damage, subletting or assignment without written authorisation, unauthorised works, demolition for a new building, or the owner's justified need to live in the property.

3. 3

   Eviction notice for demolition

   A landlord who will demolish to rebuild must serve the eviction request (desahucio) at least three months before the demolition date, with the approved plans and the municipal permit; if demolition does not start on the set date, the tenant must be compensated (art. 30, letter h).

4. 4

   At the tenant's choice

   In written leases with no term and in verbal leases, the tenant can end the lease at any time with at least one month's notice (art. 35). If the lease has a term, the written term binds both parties (art. 28).

5. 5

   If the property is sold

   A transfer of ownership ends the lease, but the new owner must give three months to vacate; if notice is not served within one month of the recording in the Property Registry, the lease continues. Leases made by public deed and recorded in the Property Registry are respected (art. 31).

Other situations are covered too: if the tenant dies, the lease continues for the family members and dependants who lived with them, if they wish and appoint a representative within thirty days (art. 32); if the property is seized, the court-appointed depositary replaces the landlord and the tenant cannot be removed before the auction (art. 34). And a tenant who has lived in a home without interruption for fifteen years or more has a right of first refusal, on equal terms, if the owner decides to sell (art. 37).

If there is a dispute

Tenancy claims follow the summary procedure before the judge for tenancy and neighbour relations (art. 42). Claims about missing services or the condition of the premises — sanitary facilities, light, water, ventilation, risk of collapse (art. 3) — also follow the summary procedure (art. 46), and the judge can order the landlord to make repairs (art. 4). Before suing, talk to a lawyer.

To search and compare

• Apartments and houses for rent across Ecuador
• Median rents by canton (market table)
• How to rent in Ecuador: a guide for tenants and landlords
• Property tax: the appraisal the maximum rent depends on