Following relatively recent law changes, Chilean law is neutral between landlord and tenant.
The following summary only refers to the renting of properties in urban areas; however, guidance will be provided on the legislation governing rental of properties in rural areas. qatar properties for sale
Note: Chilean law states that the tenant's rights cannot be exempted. Therefore, they cannot be altered by any agreement. Moreover, Chilean law does not differentiate between Chilean and foreign nationals (acting as either a tenant or a landlord).
Rent: Is there a free agreement between landlord and tenant to rent in Chile?
The rental amount between the landlord and the tenant can be freely agreed. The rent amount, as well as a duration of the lease agreement, must be indicated in writing otherwise the law assumes that the rent is based on the declaration of the tenant. Strictly speaking, the monetary figure of the lease contract only becomes "the rent" when it is regular, which is what in most cases happens (usually monthly).
Deposits
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There is no maximum legal deposit. Most commonly, landlords request a one-month rental deposit. This deposit is transferred together with the first month of rent payment. This deposit is considered to be a security deposit held by the landlord to protect the tenancy obligations until the conclusion of the contract. The landlord shall retain all or part of the deposit only after a tenant has damaged the property (according to the amount of damage, which should be subtracted accordingly to the price of damage). Where the property has not been damaged at the end of the lease, the deposit must be returned to the tenant duly adjusted in accordance with IPC (Consumer Price Index).
Unpaid rent cannot be attributed to this deposit. In practice, however, this deposit usually becomes the rental last month (which would, needless to say, be equal to paying the rent as usual and simultaneously be given back the deposit that was made in the same amount at the start of the contract). The tenant would vacate the premises at that time.
What are the rights of landlords and tenants in Chile, particularly regarding contract duration and eviction?
Chilean law differentiates between three situations:
Monthly contracts ("mes a mes") and agreements without a fixed term (indefinitive duration). The landlord can terminate these contracts only through a judicial expulsion or through an expulsion that is personally notified to the landlord through the notary public. The owner does not have to give a reason. In both cases, the law provides a minimum time limit for the tenant to vacate the premises for two months. The time limit for each completed year the tenant occupied the property increases by one month to six years (six months is the maximum notice period). The tenant must pay rent until the day on which the property has been vacated, even if the property is returned before the law.
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However, the landlord is entitled to commence legal proceedings under Law n° 18.101 of 1982 - with the amendments introduced by Law n° 19.866 of 2003 - in the event of violations of the tenant's obligations and duties (that is, failure to pay the necessary rent on time or other breaches).
In the case of contracts with a specified time period but not exceeding one year it is only possible to expel the premises judicially and in this case the tenant would have a period of two months to vacate the premises. The rent shall be paid until the restitution has been received. As can be seen, eviction cannot be done through a notary public in this situation. If, by contrast, the tenant wishes to leave the building before the expiry of the agreed deadline, he or she shall be entitled to do so without paying the rent for the remainder of the agreed term.
Finally, where contracts of a term of one year or longer, and provided that the property is for residence, i.e. that the landlord prohibits the subletting of the property, the tenant would be authorized at any moment to terminate the contract without a notice and without payment of the rent that would otherwise be payable in the event of an hourly charge, However, the landlord cannot almost so freely terminate the contract. If the landlord wants to terminate, the tenant must do so by way of judicial expulsion and the tenant will have a time limit of two months to evacuate the premises in this case.
Non-payment EVICTION OF RENT
Duration until process service is completed 15
Trial Duration 200
Enforcement Duration 25
Total Evict Tenant Days 240
Courts: The Project Lex Mundi
How effective is the legal system in Chile?
Tenancy is enforced and the proceedings may be lengthy before the courts. In the case of monthly contracts and contracts without a specified period (indefinite term), however the eviction requires no judicial intervention, since it is also possible to do so through a notary public.
However, there are numerous situations where legal proceedings can begin. For example, the judicial eviction referred to above, procedures for obtaining a restitution of premises as a result of the expiry of the contract duration, proceedings for terminating a lease because of a failure to pay the required rent on time or due to the tenant's other violations, etc.
The relevant proceedings are regulated in all these situations by Law No 18.101, 1982 — amended by Law No 19.866 of 2003 — and by the Code of Civil Procedure.
Legislation
The rental of real estate in urban areas is governed primarily by Act No 18.101 of 1982, as amended by Law No 19.866 of 2003. In rural areas, property rentals are governed by Decree No 993 (this is a solemn contract, which requires to be 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).