The laws on renting property in Panama are very much geared towards the landlords, although rents can be freely negotiated between the tenant and the landlord. The rental agreement for any residential property can include details of rental increases which will be applied in the future. However, rents which are no higher than $150 per month can only be increased if the landlord has written permission from the Ministry of Housing. The request will be assessed on the grounds of the fairness of the rent and the return that the landlord can expect. Exempt from this are rural properties, those properties located in the Canal Zone, rental of any holiday properties providing the tenants are there for less than 6 months and any property which is managed or administered by an official body.

Those who are renting property in Panama can expect to pay a security deposit at the same amount as a month’s rent. This deposit is passed by the landlord to the Ministry of Housing and is returned when the rental agreement comes to an end, unless the landlord is making a claim on the monies for rent that is owed by the tenant or to cover any damage that has been caused by the tenant. There are not normally any restrictions on the length of rental agreement. This is usually agreed between the landlord and tenant prior to the agreement being signed. The contract is not binding with regard to the length of contract, as the tenant can terminate the agreement with a notice period of 30 days.

Tenants can be evicted if they have not paid their rent, but there is a minimum period of time which passes while the legal procedures are taking place. This includes the service of process, the trial and the enforcement, and this can add up to 120 days. In order to evict a tenant the landlord must be prepared to go to court, as the notice to evict must be enforced by the Corregidor, the highest legal authority of each region. Landlords who wish to evict tenants for non-payment of rent may find that due to the workload of the courts the process takes several months.

Most people who are renting will find a home through an estate agent. The estate agent will act on behalf of both the tenant and the landlord and a standard lease agreement will give the tenant three years minimum in the property if neither party wishes to terminate the agreement in the meantime. It is not unheard of for rental agreements to be for a period as long as 20 years. Some early terminations may bring penalties for the tenant, but any penalties will be stipulated in the contract. Rentals of less than a year are likely to cost the tenant more in rent and deposit.

Rent increases are not normally more than 5% per year, with an average of around 3% being the norm. All rents are payable monthly in advance.

Tenants will be able to find furnished and unfurnished properties. Furnished will usually mean basic furniture such as a bed, wardrobe, living room furniture and kitchen appliances such as cooker and fridge. Extras such as televisions will not be included, although some landlords may provide kitchen utensils. Unfurnished will mean no furniture and occasionally no kitchen appliances, and the tenant will be expected to provide their own. Unfurnished will usually mean that carpets and curtains are provided by the landlord but this will vary. The tenancy agreement will stipulate all the items which are to be included.

As with all countries, property rental prices vary depending upon area and facilities. Good quality apartments in cities that have 2 or more bedrooms, secure parking and have basic appliances can cost from around $600 per month. Apartment buildings that have communal gyms or swimming pools will charge a lot more and depending upon the area can be $2000+. Beach front property can be $3000+ each month and houses with gardens will be $1500+ depending upon the area. Houses in poorer areas can be found for less than $500 per month, but the facilities available will be very basic and you may find yourself off the beaten track.