Inefficient courts favour tenants
May 31, 2006
The rental market of Paraguay is PRO-TENANT.
Rents: Can landlord and tenant freely agree rents in Paraguay?
Rents can be set freely and also increased by agreement between landlord and tenant. There is no rent tribunal.
It is possible to agree cost-of-living rent increases according to official rates, or to agree any other type of increase.
No maximum security deposits are set by law. In practice it is normal for the tenant to leave a deposit of a month for rent (rental deposit) and another month for possible outstanding expenses (security deposit).
What rights do landlords and tenants have in Paraguay, especially as to duration of contract, and eviction?
Periods of rent can be set freely, but no longer than five years. Contracts for an indefinite period expire at five years.
Generally, contracts include a penalty clause related to termination before the end of a contract period on the initiative of the tenant, most commonly stipulating the loss of the rental deposit. The landlord cannot terminate the contract before its end.
It is necessary a civil action for eviction at the end of the contract, if the tenant does not move out. The proceedings include notice.
EVICTION FOR NON-PAYMENT OF RENT
|Duration until completion of service of process||12|
|Duration of trial||50|
|Duration of enforcement||140|
|Total Days to Evict Tenant||202|
|Courts: The Lex Mundi Project|
How effective is the Paraguayan legal system?
The court system does not work properly. It can take two years to collect unpaid rent. It is also hard to evict a tenant. Politics have influence on court matters.
Landlords and tenants issues are regulated by the Civil Code (Codigo Civil de Paraguay de 1985/ Ley no. 1.183/85)
Brief History: Recent changes in Paraguayan landlord and tenant law
There has been neither radical de-regulation nor re-regulation in the past few decades. The current Civil Code was enacted in 1985. It made no changes on this matter.