Chile Rental Laws: Pro-landlord, Neutral or Pro-tenant?
Chile landlord and tenant laws are judged by the Global Property Guide to be slightly Pro-Tenant between landlord and tenant. The country remains mostly pro-tenant, with strong protections against arbitrary eviction and a legal process that prioritizes tenant rights. However, legal updates in recent years have improved landlords' ability to enforce their rights, suggesting a slow movement toward a more balanced framework.
Rent: Can landlord and tenant freely agree rents in Chile?
The amount of rent can be freely agreed on between the landlord and the tenant. In Chile, both residential and commercial leases are governed by the Chilean Civil Code and the Urban Lease Law (Ley de Arrendamientos Urbanos). Lease agreements must be executed in writing and must clearly specify key terms, including the lease duration, rental amount, and each party’s maintenance responsibilities.
Deposits
Security deposits are commonly required to protect landlords from potential damages or unpaid rent. Typically, landlords request a deposit equal to one to two months’ rent. The deposit should be held in a separate account, and its return at the end of the lease must comply with legal requirements, including the deduction of any legitimate expenses or damages.
What rights do landlords and tenants have in Chile, especially as to duration of contract, and eviction?
Tenants in Chile are granted legal protections, including safeguards against unfair eviction. Landlords must provide proper notice if they wish to terminate a lease or increase the rent. Additionally, in certain circumstances, leases must be registered with the appropriate authorities to ensure enforceability and legal compliance.
Landlords are generally responsible for the maintenance and upkeep of the property. Regular maintenance is essential to preserve the property's condition and ensure tenant satisfaction. This includes promptly addressing necessary repairs and maintaining cleanliness and safety standards throughout the tenancy.
How effective is the Chilean legal system?
Tenancy is enforced before the courts, and the proceedings may be long. However, in the case of monthly contracts and contracts without a specified duration (indefinite term), the eviction does not need the intervention of the courts since it can also be done by way of a Notary Public.
There are, however, numerous situations in which legal proceedings may be started. For instance, the judicial eviction mentioned above, proceedings to obtain the restitution of the premises as a result of the expiry of the duration of the contract, proceedings to terminate the lease for failure to pay the required rent on time, or because of other violations by the tenant, etc.
Legislation
The leasing of real estate in urban areas is primarily governed by Law N° 18.101 of 1982, as amended by Law 19.866 of 2003. The lease of property in rural areas is governed by Decree N° 993 (this is a solemn contract, which requires being executed by way of either a public deed before a Notary Public or a private instrument, in which case it necessitates the intervention of witnesses).
In all cases, the general norms of the Civil Code are complementarily applicable, notably the section in Book 4 on Contracts of Lease (Del Contrato de Arrendamiento, Titulo XXVI).
