In Panama, evicting a tenant from residential property involves a specific legal process governed by Law #93 of 1973. This guide outlines the key aspects of this process, offering landlords a clear understanding of their rights and responsibilities.
Law #93 applies to most residential leases but excludes certain types, including:
* Rural property leases
* Properties in the reverted Canal Zone
* Short-term rentals (under 180 days) such as hotels or vacation properties
* Leases involving the Panamanian government (unless the government acts as the landlord)
For properties with a monthly rent exceeding $150, lease agreements can include agreed-upon rental increases and flexible lease terms with extension provisions. Tenants can cancel leases with 30 days’ written notice.
A security deposit, typically one month’s rent, is submitted to the Panama Housing Ministry and returned to the tenant at the end of the lease, provided the landlord has no valid claims for damages.
Eviction proceedings in Panama generally take approximately 120 days, while recovering unpaid rent can take around 270 days. Court workloads can affect these timelines, potentially extending the process. Landlords should be prepared for potential delays.
For landlords renting to expatriates, it’s crucial to be aware of potential risks. Tenants might leave the country without settling outstanding rent, making it difficult to recover funds, especially if assets are moved offshore or concealed within complex financial structures. Therefore, proactive measures are advisable.
It is crucial that landlords never resort to self-eviction tactics, such as disconnecting utilities or changing locks. Such actions can lead to counterclaims from tenants, further prolonging the eviction process. Seeking competent legal counsel is always recommended to ensure compliance with the law and protect your interests.
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