Understanding the eviction process is crucial for landlords in Panama’s residential real estate market. This guide provides an overview of the legal framework and practical considerations.
Governing Law: Law #93 of 1973 governs residential property leases in Panama. However, certain leases are excluded, including those for:
* Rural properties
* Properties in the former Canal Zone
* Short-term rentals (hotels, motels, etc.)
* Vacation properties with leases under 180 days
* Leases involving the Panamanian government (though the government can utilize eviction provisions as a landlord).
Rental Values and Lease Terms: For properties with monthly rents exceeding $150, lease agreements can include agreed-upon rental increases and flexible lease terms, including extensions.
Tenant Cancellation: Tenants can cancel residential leases with 30 days’ written notice.
Security Deposits: Typically, a one-month rent security deposit is submitted to the Panama Housing Ministry. It’s returned at the lease’s end unless the landlord claims damages.
Eviction Proceedings: Eviction proceedings generally take around 120 days, while recovering unpaid rent may take approximately 270 days. Court workload can extend these timelines.
Protecting Your Interests: Renting to expatriates presents unique challenges. Landlords should be aware that tenants might leave Panama without settling their debts. Funds may be transferred out of the country or concealed within untraceable entities.
To safeguard your interests, consult with legal counsel to implement lawful protective measures. Never resort to self-eviction tactics like disconnecting utilities or changing locks, as this could lead to counterclaims and further delays. Seeking professional legal advice is paramount.