'Montevideo Apartment Rental Deposits' Real Estate

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Montevideo Apartment Rental Deposits

My experiences (I've rented 4 different apartments) has always fit within that too. The only exception being that some owners wanted a property to be put up as security for renting.

I've paid deposits of 2 months, 3 months and 5 months. All the of apartments I've rented are in Pocitos or Villa Biarritz.

Yesterday I learned something "new". I looked at an apartment and the real estate agent told me that the deposit was "10 months rent". I said, "Oh, I thought the maximum was 5 months".

She then told me that "well, in areas like this [Pocitos] the absolute minimum would be 8 months... but in one other areas where the value of the properties are less it might be 5 months deposit." She continued to explain that it is really based on the value of the property.

That's interesting because the place I rent now is of much greater value and I paid only a 5 month deposit.

The lease I have now was written by an attorney and I checked it out to see what it says: "En garantía de todas y cada una de las obligaciones asumidas el arrendatario se obliga a depositar en el Banco Hipotecario del Uruguay lo equivalente en moneda nacional la U$S -.-- equivalentes a 5 meses de alquiler en los términos y condiciones establecidas en el artículo 38 de la ley 14.219."

That is pretty clear... 5 months deposit per the Uruguay Rental Laws (link below for anyone that wants to practice their Spanish)...

Let 14.219: "Artículo 38.- El locador, sublocador, sus representantes o administradores de propiedades no podrán exigir en garantía del arrendamiento una suma superior al monto de cinco meses de alquiler tratándose de fincas destinadas a habitación y de diez meses cuando tuvieran otros destinos...."

So what is pretty clear to me is that real estate agency is crossed off my list permanently.

• Uruguay Rental Law

It requires all rental deposits be put in "Banco Hipotecario de Uruguay". They are put in an account which requires the renter and the owner to sign for the release of the money.

It also seems to provide for some penalties... "En caso de incumplimiento a lo dispuesto en los incisos precedentes, serán pasibles de una multa que el Juez fijará entre una y cinco veces el monto del depósito retenido."

Yes it gets lodged in to a joint account in Banco Hipotecario, but don't be so sure that is a guarantee of a simple and straightforward moving out process, they can kick up a fuss if they want to and I was shocked by how regularly people sue each other here (in Ireland when I was a kid we used to laugh at how often people sued each other in the US, it simply wasn't heard of in Ireland when I was a kid....but the people got rich and our culture followed suit, well here in Uruguay lawsuits seem pretty common to me).

You should see the inventory the landlords or inmobilarias (rental agents) taken, even on unfurnished apartments! Things like the front door, window frames, light and plug sockets, toilet and sink etc are listed, and whats even more ridiculous is they actually check these lists rigorously when you move out, as if you could casually walk past them with the front door and the toilet and expect them not to notice!

And as if 5 months isn't enough to ask for, some have the gall to demand 8 or 10! The rental situation here is not as straightforward as in other places and if you come expecting (or hoping) for it to be so then you will be disappointed, and possibly very angry and without enough money for a deposit.

My understanding is that the main reason for requiring the guarantee or deposit is that the laws so strongly favor tenants. It can be quite difficult for a landlord to remove a tenant who has stopped paying rent -- it takes much longer than five months. So it is a form of insurance that many landlords require. As is so often the case, laws that were intended to "protect" one group of people (tenants) end up harming them instead, by making it more difficult for them to afford renting in the first place.

It is even more problematic for landlords if the renters have children living with them. I even know of a case where someone allowed a relative to live in an apartment rent-free for a short period, but then the tenant refused to leave, and had a minor move in with her. In an effort to persuade the tenant to leave, the landlord stopped paying the water and electricity bills. The tenant sued the landlord, and the court ordered the landlord to continue paying the utilities so that the tenant and her minor guest could continue living there.

In another case, a houseguest who refused to leave caused such a headache for the owner that the owner decided it was easier to sell the property, "guest" and all, and let the new owner deal with the problem.

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