RENTAL GUIDE P1.

SOME BASICS :

As you begin your search for a beach property, be sure to ask your broker or property owner basic questions so you won’t be surprised later. Some of the things I recommend:

1. Hours of common areas such as swimming pools, gyms, parks, and request the regulations in case you are interested in a property inside a complex.

2. What does the price include and what are your additional monthly expenses? In general, it is the responsibility of the tenant to cover the internet, cable TV and electricity. If, on the other hand, if you are interested in renting a house, make sure you are clear about who is going to cover the maintenance of the garden and pool, in general it always corresponds to the owner, and it is included in the rental price.

3. MAKE SURE you have a contract. Making a verbal agreement can bring many inconveniences with the landlord and the relationship between the two. The contract is a protection of your rights and a commitment to the responsibilities of both of you.

4. It is always ideal to listen to different opinions about the place to live. In general, the entire beach area is safe, but according to the different needs, for example small children, not having a car or some mobility problem, are some of the circumstances to consider so that your rental is convenient and prosperous. In Coronado especially, we have a large and diverse community of Expats, who can give you their opinion on the place that interests you.

5. Make sure you know not only the property where you are going to live, but also the area. There are many residential areas on the beach that are not close to supermarkets, pharmacies, schools, and hospitals.

6. As a final general recommendation, use a licensed real estate broker. You can request their license and make sure you are working with a suitable person. Not using a regulated agent can bring you a lot of legal problems and lose money, believe me it’s not fun.

THE RENTAL AGREEMENT

The rental agreement establishes the conditions for your lease. For example, the rental price, who covers the expenses, what are the responsibilities of the tenant and the owner as well as the period of the rental and the penalties for non-compliance or early abandonment.

My first recommendation is always to do your due diligence on the property you are renting. Ask your real estate broker or lawyer to verify in the Panama public registry that the person with whom you are negotiating and signing a contract is indeed the owner of the property. You MUST NOT sign a rental agreement with someone who does not own the property. If you are not using the services of a broker or attorney, ask the owner to show you the deed of the property to verify this information.

ALL rental contracts must indicate as the only requirements for the return of the guarantee deposit, 30 days’ notice and that the property has no damages or outstanding debts. If your contract says something different, I recommend you request advice today!

A very important fact that often happens is that if both parties speak different languages, the contract must be in both languages. Request this instead of using google translate because there may be confusion that costs you money.

THE GUARANTEE DEPOSIT

The security deposit of a rental property is delivered to the landlord to have an insured sum of money in case of damage to the property or debts payable by the tenant at the time of leaving the property, this deposit must be delivered together with the first month or separately depending on move-in date and is for the amount of 1 month’s lease. That is, if your monthly rent is $1,500, the deposit is $1,500.

There is a very common confusion that the deposit belongs to the landlord. NO. The guarantee deposit belongs to the tenant and must be returned once the rental contract is finished if there are no damages or debts.

In many cases, this deposit is used by tenants as payment for the last month’s rent. As a broker, I do not recommend this practice to any owner, because you don’t know what could happen that last month, and if there is any damage during it., you will have to repair it with your money without having caused it.

WHO IS IN CHARGE OF THE REPAIRS?

It must be established in your rental agreement that structural repairs such as cracks, leaks, damage to the infrastructure of the house or apartment, are the responsibility of the owner.

expenses such as plumbing or electricity damage if you as a tenant have not caused it, are responsibility of the landlord too.

In the opposite case, it is the responsibility of the tenant to repair any damage that has been caused. Some tenants are used to carrying out the repairs of the property and deducting the cost of the monthly rent, I do not recommend this practice unless you are 100% sure that the person you are hiring will do a good job according to the owner’s agreement.

It is very important that before receiving the keys to your property you verify all the details, such as the operation of the appliances, damages on the furniture, water heater, etc. Once you have received the keys to the property, you can request the owner to carry out the repairs that are necessary, but not conditions such as changing the furniture because they are not to your liking, removing furniture that was not previously consulted, painting the entire property to your liking, or making structural reforms without being authorized.

I hope this brief guide will help you in your rental process in this beautiful area of the country, I am at your service if you have any questions!!!

-Kristie.