Rental Law in Uruguay 2026: Rights and Contracts

INGAR · · Rentals

Rental Law in Uruguay 2026: Rights and Contracts

What This Guide Covers

In Uruguay, Decree-Law 14.219 of 1974 applies in full to properties whose building permit was filed before 2 June 1968. For later ones, its Article 102 preserves only Chapter VII (guarantees) and Section I of Chapter VIII: everything else is governed by what the parties agree and by the Civil Code. So the first thing to find out is which regime your contract falls under. When the law applies, no matter what the contract says: if a clause contradicts this public-order rule, it is void. The contract continues; the clause does not.

The problem is that most tenants (and many landlords) sign without knowing the law. Then come the surprises: a rent increase that wasn't due, an eviction that can't be demanded, a deposit that isn't returned, a commission that shouldn't have been charged.

This guide is a complete walkthrough of the rental law currently in force in Uruguay. It is not legal advice — for your specific situation, consult a lawyer or notary. But if you're about to sign a contract, renew one, or resolve a dispute, here you'll find the legal foundation you need.

Before continuing, if you're still putting together your application file, review requirements for renting in Montevideo. And if you have questions about which guarantee suits you best, read rental guarantees in Uruguay.

The Legal Framework: What Rules Govern Rentals in Uruguay

There is not a single rental law. Several regulations coexist, and which one applies depends on the case. The main ones:

Regulation What It Governs Applies To
Decree-Law 14.219 (1974) Urban and suburban leases Properties with a building permit filed before 02/06/1968. For later ones, only Chapter VII (guarantees) and Section I of Chapter VIII (art. 102)
Law 13.659 (1968) Free-market contracting regime Properties with a construction permit dated after 02/06/1968 (unless parties opt into 14.219)
Law 19.889 (LUC), arts. 421-459 (2020) No-guarantee leases for housing Contracts where the tenant does not provide a guarantee
Civil Code, arts. 1776-1844 General lease rules Supplementary for everything not covered by the special law

It is important not to conflate two separate criteria. On one hand, which protective regime applies depends on the property's construction permit date: if it predates 2 June 1968, Decree-Law 14.219 governs; if it is later, the free-contracting regime of Law 13.659 applies (unless the parties opt into 14.219). On the other hand, and independently, since 2020 the LUC (Law 19.889) created a special regime for contracts without a guarantee. This guide breaks down Decree-Law 14.219 because it is the most protective regime and the one that sets the floors that cannot be contracted away. But before applying any of its rules to your own contract you have to confirm the date of the building permit: if it is later than 2 June 1968, only Chapter VII (guarantees) and Section I of Chapter VIII of the decree-law apply, and the rest is governed by what was agreed and by the Civil Code.

Minimum Term: 2 Years for Housing Under the Decree-Law 14.219 Regime

Article 3 of Decree-Law 14.219 establishes minimum legal terms that cannot be reduced by contract:

  • Housing (primary residence): minimum 2 years.
  • Industry and commerce: minimum 5 years.
  • Other uses: minimum 2 years.

If the contract is covered by Decree-Law 14.219, a 1-year term is void to the extent it harms the tenant and the contract is automatically extended to 2 years, and the difference benefits the tenant exclusively. This does not apply if the property is under the free-contracting regime (art. 2), if the contract is excluded by art. 28 (seasonal rentals, initial price above 70 UR, household income above 200 UR, etc.), or if the parties opted for the no-guarantee regime of Law 19,889, which sets no minimum term (art. 422). In other words, within the Decree-Law 14.219 regime: the landlord cannot force you out before 2 years, but you can leave after one year if the contract allows it.

Important detail: there is no explicit legal maximum term in the 14.219, but the Civil Code sets a general maximum of 30 years (Article 1782) for leases.

The Good-Payer Extension

This is one of the strongest protections tenants have in Uruguay, and one that few people fully understand.

At the expiry of the contractual term (whether the legal minimum or a longer agreed one), if the tenant has met their obligations — paid on time, maintained the property, caused no damage — they are entitled to an additional 1-year extension.

You don't need to request it. It operates automatically simply by not handing over the property on the expiry date. The landlord cannot prevent it if you have been a good payer.

During that extension:

  • Rent is adjusted according to the rules of article 15 (the lower of URA and CPI, explained below).
  • All original contract conditions apply.
  • The landlord cannot request eviction during the extension. Only once the extension expires may they request it, and then with a 1-year period for actual vacation of the property (article 5 of Decree-Law 14.219). Special grounds for eviction, such as non-payment, follow their own rules.

In total, a 2-year contract with a good-payer extension gives you a minimum of 3 years of occupancy. If eviction is initiated at the end of the extension and the 1-year period is granted, 4 years may pass from when you signed.

Annual Rent Adjustment: The "Lower of URA and CPI" Rule

Article 15 of Decree-Law 14.219 establishes how rental prices are adjusted. It is not optional: it is the legal rule, and any clause that sets a more burdensome adjustment mechanism for the tenant is void.

The mechanism works as follows:

  1. Calculate the variation of the CPI (Consumer Price Index, published by the INE) over the 12 months prior to the adjustment month.
  2. Calculate the variation of the URA (Rental Adjustment Unit) over the same 12 months. The URA is a 3-month average of the Reajustable Unit (UR).
  3. The adjustment coefficient is the lower of the two.

This protects the tenant: if inflation (CPI) rises 8% but the URA rose 6%, your adjustment is 6%. And vice versa.

Example with Real Values

For contracts that adjusted in January 2026, the published coefficient was 1.0365 (i.e., an increase of 3.65%). If you were paying $25,000 in rent, you moved to paying $25,913.

The Executive Branch publishes the monthly values of UR, URA, and the rental adjustment coefficient by decree. You can find updated values at IMPO - UR, URA, and CRA Values.

If the Contract Says Otherwise

Some contracts establish adjustment by UR (not URA), direct CPI, or "whichever index results in the higher figure." If the agreed mechanism results in a larger increase than the legal coefficient, the tenant can invoke article 15. In practice, many modern contracts already state "according to the rental adjustment coefficient published by the Executive Branch," which is exactly the legal mechanism.

And one point that causes a lot of confusion: the adjustment is annual. It cannot be applied every 6 months unless the parties agree to a stepped pricing arrangement (which is different from an index-based adjustment).

The Guarantee: Legal Limits and Types

Decree-Law 14.219 (article 38) sets maximum limits for the guarantee the landlord may require:

Property Use Maximum Guarantee
Housing (primary residence) 5 months of rent
Commerce, industry, other uses 10 months of rent

That limit applies to the value of the guarantee, not the form. The most common types in Uruguay are:

  • ANDA guarantee: an institutional guarantee (joint and several surety). The tenant and the landlord each pay 3% of the monthly rent (VAT included), according to ANDA's published FAQs, plus the membership fee corresponding to your type of membership. ANDA guarantees the landlord.
  • BHU guarantee: deposit at the Banco Hipotecario (Mortgage Bank). The tenant locks up funds that are returned at the end.
  • Cash deposit: Article 38 requires it to be constituted within 15 days of signing the contract. Since Article 25 of Law 18.795 (2011) the deposit is constituted in Unidades Indexadas (UI) — no longer in Reajustable Mortgage Bonds — and it can be received by banks and financial intermediation cooperatives, not only by the BHU.
  • Personal guarantee (guarantor): a third party assumes joint and several liability.
  • Private surety bond: insurance companies such as Porto, Sura, etc.

A detail that few people know: under Article 40 of Decree-Law 14.219, the tenant (or the guarantor) can substitute the personal surety with the guarantee deposit, and the landlord cannot object, unless legal proceedings have already begun. Today that deposit is constituted in Unidades Indexadas (Law 18.795, art. 25).

For a comparative analysis of costs, timelines, and requirements for each guarantee: rental guarantees in Uruguay.

What a Rental Contract Must Contain

A rental contract in Uruguay must be in writing. Although a verbal agreement can be proven in court, in practice without a written contract you are in a very weak position. A complete contract must include:

  1. Identification of the parties: full name, national ID number, address of the landlord (lessor) and tenant (lessee). If a real estate agency acts on behalf of a party, its details must also be included.
  2. Description of the property: exact address, land registry number (padron), floor, unit, floor area. If a garage, storage unit, or parking space is included, it must be stated explicitly.
  3. Intended use: residential, commercial, professional. This matters because minimum terms and maximum guarantees change depending on use.
  4. Price and currency: monthly rent amount, currency (pesos or foreign currency equivalent converted to pesos), and payment deadline. To check that the amount is in line with the market, you can compare it against the median rents by neighborhood in the INGAR Index.
  5. Adjustment mechanism: index, frequency, and date of first adjustment. The correct wording is "according to the rental adjustment coefficient published by the Executive Branch."
  6. Term: start date, end date, and renewal conditions if any.
  7. Guarantee: type, amount, how it is established, and conditions for return at the end.
  8. Expenses: what each party pays. Rent, ordinary common fees, property tax (contribucion inmobiliaria), utilities (water, electricity, gas), primary education tax.
  9. Inventory: the condition of the property and everything it contains. It is part of the contract. It must be signed by both parties, ideally with photographs.
  10. Early termination conditions: required notice, penalties if any.
  11. Maintenance and repairs: who is responsible for what.

If the property is in a horizontal property regime (condominium), also read the co-ownership bylaws: horizontal property in Uruguay.

Illegal Clauses: What a Contract Cannot Say

Decree-Law 14.219 is public order legislation. This means it protects the tenant above and beyond what the parties agree. Any clause that contradicts the law is automatically void. The most common ones we see at INGAR:

Clause Why It Is Void
"The term is 12 months" Void only under Decree-Law 14.219: there the minimum is 24 months and the contract is automatically extended. Under free contracting or the LUC's no-guarantee regime, 12 months is valid.
"Adjustment will be by whichever index is higher between CPI and URA" The law says the lower. The opposite is prejudicial to the tenant.
"Adjustment will be semi-annual" The legal adjustment is every 12 months. Shorter frequencies are not permitted for index-based adjustments.
"The tenant waives the right to the good-payer extension" Rights granted by law cannot be waived in advance.
"Rent will be paid in US dollars" Under 14.219, the price is set in national currency. It can be referenced in foreign currency, but payment is in pesos at the prior day's exchange rate.
"In the event of default, the tenant is automatically subject to eviction" Default does not operate automatically. It must be judicially notified. The tenant has the right to pay and cure the default.
"The guarantee will not be returned if the tenant terminates early" The guarantee covers unmet obligations; it is not a penalty for early termination.
"The landlord may enter the property at any time" The tenant has the right to privacy and peaceful enjoyment of the property. Visits require prior agreement.

The fact that a clause is printed in the contract does not mean it is valid. If the law invalidates it, it is as if it did not exist. But note: to enforce this in court you need to claim it. Knowing it isn't enough.

Tenant Rights

Decree-Law 14.219 and the Civil Code give the tenant a set of rights that do not depend on what the contract says:

1. Habitability

The property must be in habitable condition. This includes functioning sanitary facilities, water supply, a roof without leaks, electrical installation in good condition, and a secure structure. If the property has defects that make it uninhabitable and the landlord has been notified and does not make repairs, the tenant may seek contract termination or a rent reduction.

2. Essential Services

The landlord cannot cut off services (water, electricity, gas) as a pressure tactic. If they do, the tenant may go to court. Cutting services to force a vacating of the property is a crime (coercion) and also invalidates any eviction claim.

3. Privacy and Peaceful Enjoyment

Once possession is transferred, the property is the tenant's home. The landlord cannot enter without prior consent or make visits without coordinating. In practice, the reasonable approach is to include in the contract a prior notice mechanism (48 hours, for example) for inspections or showings to prospective tenants near the end of the contract.

4. Return of the Guarantee

When the contract ends and the tenant returns the property in the agreed condition (allowing for normal wear and tear), the landlord must return the guarantee. If the guarantee was a BHU deposit, it is withdrawn without interest: the law provides that these deposits do not accrue any (Law 18.795, art. 25) and the BHU publishes the product with a 0% rate. What preserves its value is the UI indexation. If there was damage or outstanding debt, the landlord does not decide the retention alone: the withdrawal requires the counterparty's express authorization and, failing agreement, a court order. Any retention must be justified and documented.

5. Legal Rent Adjustment

As discussed: you have the right to have rent adjusted by the legal coefficient (lower of URA and CPI), not by what an abusive clause may state.

6. Minimum Occupancy Period

You cannot be evicted before 2 years (housing) except on serious grounds (non-payment, property damage, use different from the agreed one). And after the term, the good-payer extension gives you 1 more year.

Landlord Rights

The law protects the tenant, but the landlord also has clear rights:

1. Receive Rent on Time

The tenant must pay within the agreed period (generally the first 5 or 10 days of the month). If they don't pay, the landlord can judicially demand payment and, if non-payment persists, initiate eviction for non-payment.

2. Require Proper Use of the Property

The tenant must use the property in accordance with the agreed purpose (housing, commercial use, etc.) and maintain it with the care of a "good family head" as per the Civil Code. This includes not making structural modifications without authorization, not causing damage, and not changing the intended use.

3. Inspect with Prior Notice

The landlord has the right to verify the condition of the property, but with prior notice and at reasonable hours. The tenant cannot systematically refuse coordinated inspections.

4. Recover the Property When the Term Expires

Once the legal terms have run (contract + good-payer extension, if applicable), the landlord may request eviction. They may also request vacation if they need the property for their own use or for the use of immediate family members (necessity ground).

5. Execute the Guarantee Upon Default

If the tenant leaves with outstanding rent, property damage, or common fee debts, the landlord may execute the guarantee to cover them. But the damage or debt must be evidenced and documented.

Tenant protection in Uruguay: where to turn if there's a problem

If you have a conflict with the landlord — repairs they won't make, an abusive clause, an eviction attempt that doesn't apply — you don't have to settle it by word of mouth. There are concrete channels:

  • Free advice on housing rights: the Municipality of Montevideo, together with the Udelar Law School, offers free legal guidance for tenants.
  • Public Defender's Office: if you need legal representation and can't afford a private lawyer, the Public Defender assists you according to your address.
  • Rental Guarantee System (CGN): if your guarantee is from the Comptroller General, that system also channels questions and claims linked to the contract.
  • Prior mediation: since 2020, before starting a lawsuit you must go through a conciliation or mediation stage. The conflict is often resolved there, without reaching the courts.
  • Peace Courts (Juzgados de Paz): rental disputes are handled by the Peace Court where the property is located.

The key point: document everything. Keep the contract, the receipts, the messages with the landlord and photos of any problem. Without evidence, your claim loses force; with evidence, the law protects you.

Maintenance and Repairs: Who Pays for What

This is one of the most conflict-prone topics. The general rule comes from Article 1798 of the Civil Code, which splits repairs between landlord and tenant; articles 1818-1820 detail the locative repairs owed by the tenant. It is complemented by the 14.219. Before assigning the cost you have to establish what caused the deterioration; art. 1820 requires returning the interior parts "reasonably clean", not freshly painted.

Type of Repair Responsibility Examples
Necessary repairs (structural, major installations) Landlord Roof leaks, burst pipes, general electrical installation problems, structural dampness
Locative repairs (deterioration caused by the tenant or their dependents, art. 1818) Tenant Broken window panes, doors/windows/locks out of service, damaged plaster and floor tiles, cleaning drains. It does not include wear from time and legitimate use (art. 1819), nor deterioration from force majeure, fortuitous event or poor quality of the building, which are the landlord's (art. 1798)
Improvements (adding value to the property) Whoever proposes them, with prior agreement Air conditioning, built-in closets, kitchen remodeling

If the landlord fails to make necessary repairs after being notified, the tenant may invoke the defense of non-performance: you are not obligated to fulfill your part (paying the full rent) if the other party does not fulfill theirs (keeping the property habitable). But be careful: this requires prior formal notice and it is advisable to seek legal advice before withholding payments.

Ordinary common fees are the tenant's responsibility. Extraordinary common fees (building repairs, common-area improvements, waterproofing) belong to the landlord. More detail at common fees: what they include and how they are calculated.

Early Termination by the Tenant

Here it is important to distinguish two situations:

Contracts Under Decree-Law 14.219

The law does not expressly provide for a unilateral right of early termination by the tenant. What it does allow is for termination conditions to be agreed upon in the contract. In practice, most contracts include an early exit clause that typically establishes:

  • Notice of 60 to 90 days (most common in the market).
  • Penalty: some contracts set a penalty equivalent to 1 or 2 months' rent if termination occurs before a certain point (generally the first year).
  • No penalty after the first year in many contracts, provided the notice period is respected.

If the contract says nothing about early termination, the situation is more complicated. The tenant would in principle be obligated to fulfill the full term, and the landlord could claim the remaining rent. In practice, Uruguayan case law tends to be more flexible, but this is a scenario you want to avoid.

INGAR tip: if you're about to sign a contract, make sure it includes an early termination clause with clear conditions. It's cheaper to negotiate it before signing than to litigate it afterward.

Contracts Under LUC (No Guarantee)

The LUC does not create a right to terminate early. While the contract term is running, what was agreed applies, and Article 426 only allows eviction for non-payment, expropriation or a ruinous building. The 30 days of the LUC are something else: if within the 30 days before expiry neither party notifies the other otherwise, the contract is extended for a term equal to the agreed one (art. 422 A). And once the term has expired, eviction of a good payer is ordered with 30 days to vacate (art. 430), instead of the one year under Decree-Law 14.219.

The Eviction Process: How It Works and How Long It Takes

Eviction in Uruguay is a judicial process. There is no "extrajudicial eviction" — if the landlord changes the lock or cuts services to force the tenant out, they are committing a crime. Everything goes through a judge.

Grounds for Eviction Under 14.219

The main grounds are in articles 24 and 26:

  • Expiry of the contractual term (including the good-payer extension).
  • Non-payment (bad payer): when the tenant doesn't pay and is judicially notified.
  • Landlord's necessity: for use by the landlord or immediate family members (parents, children, spouse).
  • Demolition or reconstruction: when the landlord is going to demolish the property for reconstruction or new construction.
  • Use different from the agreed one: if the tenant changes the intended use of the property (for example, opens a business in a residential unit).
  • Unauthorized subletting: if the tenant sublets without permission.
  • Property damage: serious deterioration caused by the tenant.
  • Precarious occupant: a person occupying without any legal title (not technically a "tenant").

Eviction Timelines by Ground

Ground Time to Vacate
Term expiry (good payer) 1 year
Landlord's necessity 1 year
Demolition / reconstruction 1 year
Non-payment (bad payer) 20 days
Precarious occupant 15 days
Seasonal/tourist rental (up to 120 days) 15 days
Abandonment of the property 60 days
Other grounds (improper use, subletting, damage) Up to 180 days (at the judge's discretion)

The Process Step by Step

  1. Filing: the landlord files the eviction claim with the Justice of the Peace (for lower-value cases) or the District Court.
  2. Eviction order: the judge orders the eviction with the timeline corresponding to the ground cited.
  3. Notification and defenses: the tenant is notified and has 10 days to raise defenses (objections).
  4. Transfer and hearing: if defenses are raised, they are transferred to the landlord for 6 days and a hearing is called to produce evidence.
  5. Judgment: the judge issues a ruling within 30 days of completing the evidentiary stage.
  6. Enforcement: if the ruling confirms eviction and the tenant does not vacate, it is enforced with the assistance of law enforcement.

In practice: an eviction for term expiry of a good payer can take between 14 and 18 months from filing to actual vacation. An eviction for non-payment, between 2 and 4 months if the tenant raises no defenses. These timeframes are estimates of how long the actual court process takes, not deadlines set by law (the legal deadlines are those in the table above).

Eviction for Non-Payment: The Prior Notice Requirement

To initiate an eviction for non-payment, the landlord must judicially notify the tenant of the debt. The tenant can cure the default by paying the amount owed (with interest and costs) before judgment. If they pay, the eviction case is dropped. But note: the law limits the number of times a tenant can cure a default. If it happens again, they lose the right.

Real Estate Agency Commission

In Uruguay, no law sets the rental agency commission. The Cámara Inmobiliaria Uruguaya (CIU) publishes an Arancel Oficial (official fee schedule) that is a trade-association reference — it calls itself a "minimum fee schedule" and non-compliance is sanctioned by the Chamber's own Ethics Committee — not a state-set tariff. The market standard is:

Item Amount Charged To
Commission for rental management 1 month's rent + VAT (22%) Tenant
Commission to landlord 1 month's rent + VAT (22%) Landlord

In other words, the agency charges both parties. The commission includes contract management, signature coordination, inventory, and guarantee processing.

The CIU fee schedule provides, as a reference, one month from each party for free-contracting rentals with minimum terms of one year, with a discount of up to 50% available to the landlord; for shorter terms, the commission is charged pro rata. In practice, it is the market standard for residential rentals.

If the contract is renewed there may be a new fee, but it is not automatic. Article 7 of the CIU fee schedule refers back to article 6 and allows a discount of up to 50% for each party; and because it is a trade-association schedule it does not by itself create a debt: whether anything is charged depends on what was agreed, what new service was provided and how it was disclosed before signing. Ask in writing whether there will be a charge on renewal.

For short-term rentals (up to 5 months), the CIU fee-schedule reference is different: 8% of the contract amount + VAT from each party, and it covers the fee for drafting the contract.

LUC Contracts (No Guarantee): The Alternative Regime

Since 2020, the Urgent Consideration Law (Law 19.889, articles 421 to 459) created a special regime for residential leases without a guarantee. It was designed to facilitate housing access for people who cannot provide a guarantee (ANDA, BHU, deposit, or guarantor).

The main differences from the 14.219 regime:

Aspect Decree-Law 14.219 LUC (No Guarantee)
Guarantee Up to 5 months Cannot exist (requirement of art. 421)
Minimum term 2 years No legal minimum
Maximum term 30 years 30 years
Rent adjustment Lower of URA and CPI Free (parties agree)
Currency Uruguayan pesos Free (pesos, USD, UI, UR)
Extension 1 year (good payer) Automatic for same term as agreed, unless 30-day notice given
Good-payer eviction 1 year 30 days

The LUC regime is more flexible but less protective for the tenant. The 30-day eviction period (versus 1 year under 14.219) is the most significant difference. It's a trade-off: you gain access without a guarantee, but your position in an eviction is much weaker.

Virtual Meetings in Horizontal Property Regimes

Since July 2022, Law 20.058 has enabled co-owner meetings in virtual or hybrid format. If you rent in a condominium building, this affects you indirectly: assembly decisions (extraordinary fees, works, bylaw changes) impact your common fees.

Key points of Law 20.058:

  • Ordinary and extraordinary meetings can be in-person, virtual, or hybrid.
  • Notice must be sent with the same advance notice required by law or the bylaws.
  • Documents to be considered (budgets, reports) must be sent to co-owners with at least 48 hours' notice.
  • The platform used must allow simultaneous two-way audio and video communication between all participants.

As a tenant, you don't vote at the meeting (that is the landlord's right), but you have the right to be informed by your landlord about decisions that affect your situation (works that cause disruption, extraordinary common fee increases, etc.).

Quick Reference Table: All the Essentials at a Glance

Topic Legal Rule Reference
Minimum term (housing) 2 years DL 14.219, art. 3
Minimum term (commercial) 5 years DL 14.219, art. 3
Good-payer extension 1 year automatic DL 14.219
Rent adjustment Annual, lower of URA and CPI DL 14.219, art. 15
Maximum guarantee (housing) 5 months' rent DL 14.219, art. 38
Maximum guarantee (commercial) 10 months' rent DL 14.219, art. 38
Eviction (good payer) 1-year period DL 14.219, art. 5
Eviction (non-payer) 20-day period DL 14.219, art. 48
Real estate commission 1 month + VAT to each party CIU Fee Schedule
Contract currency Pesos (foreign currency reference permitted) DL 14.219

Checklist Before Signing

Before signing a rental contract, verify these points and ask for them in writing if any are missing:

  • Term and renewal: start date, end date, extension conditions.
  • Adjustment: index ("rental adjustment coefficient"), annual frequency, date of first adjustment.
  • Guarantee: type, amount, how it is established, return conditions at the end.
  • Expenses: what the tenant pays (rent, ordinary common fees, utilities) and what the landlord pays (property tax, extraordinary common fees, major repairs).
  • Maintenance: what counts as a locative repair (tenant) and what counts as a necessary repair (landlord).
  • Inventory: signed by both parties, with photographs, including condition of floors, walls, windows, appliances, and fixtures.
  • Early termination: required notice, penalties if any, from when early termination is possible.
  • Pets and use restrictions: whether they are allowed, building rules.
  • Real estate commission: exact amount, who is charged, what is included.

One point many people overlook: read the inventory with the same attention as the contract. It is the document that defines the condition in which you received the property, and it is the reference when you leave. If you don't sign an inventory, you cannot later prove what condition it was in when you moved in.

Mistakes We See Every Month

  1. Signing without reading the adjustment mechanism. Then the first adjustment comes and it's higher than expected. Check that it says "rental adjustment coefficient" and not a different index.
  2. Not doing an inventory. At the end of the contract, the landlord claims damages that were already there when you moved in. Without a signed inventory, you have no way to defend yourself.
  3. Not clarifying what the rent includes. Garage, storage unit, kitchen equipment: if it isn't written, it isn't included.
  4. Paying cash without a receipt. If you have no payment confirmation, you have no proof. Always use bank transfer or signed receipt.
  5. Not knowing the difference between ordinary and extraordinary common fees. You pay ordinary fees. Extraordinary fees (building repairs, new elevator, waterproofing) belong to the landlord. If they are passed on to you, object.
  6. Not negotiating the early termination clause. If you later need to leave before the term and there's no clause, you will have a serious problem.
  7. Thinking the contract overrides the law. If a clause contradicts Decree-Law 14.219, it is void even though you signed it. But you need to invoke the law for it to apply.

Frequently Asked Questions

Can I rent in US dollars?

Under the 14.219, no. The price is set in pesos. You may reference a foreign currency equivalent, but payment is made in pesos at the prior day's exchange rate. Under the LUC regime (no guarantee), yes — the contract may be denominated in USD, UI, or UR.

What happens if the landlord sells the property?

Your contract remains in force. The new owner steps into the previous owner's position: they must respect the term, conditions, and guarantee. You cannot be evicted because "ownership changed."

Can I sublet?

It depends on the regime. Under the general rule of the Civil Code (article 1791) you may sublet for the same use and within your own term unless the contract expressly forbids it. Under the LUC no-guarantee regime it is the other way round: the right must be stated in writing. If you sublet where it was forbidden, or without the authorisation your regime requires, the landlord can seek eviction.

What do I do if the landlord doesn't return the guarantee?

First, notify them formally in writing (certified letter or equivalent). If they don't respond or refuse, you can file a judicial claim. If the guarantee was a BHU deposit, withdrawal requires the landlord's consent or a court order.

What if the landlord raises rent above the legal limit?

Pay what is due according to the legal coefficient and notify the landlord in writing that the increase exceeds the legal maximum. If they insist, the avenue is the courts. But don't stop paying: non-payment, even partial, can give grounds for an eviction claim for non-payment.

Can I make improvements to the property?

Only with the landlord's written authorization. If you make improvements without authorization, you cannot claim reimbursement. If you make them with authorization and the contract is silent on who pays, the general rule is that they become part of the property without compensation. That's why it always needs to be in writing.

How long does an eviction take in practice?

It depends on the ground. An eviction for non-payment with no defenses raised: 2 to 4 months. An eviction for term expiry with the good-payer extension: 14 to 18 months or more if defenses and appeals are filed. The Uruguayan court system is slow, and in practice that benefits the tenant. Note: these are estimated durations of the actual process, not legal deadlines; the deadlines set by law (1 year, 20 days, 15 days, 180 days) are those in the eviction table.

Where can a tenant turn with problems in Uruguay?

To the free housing-rights advice from the Municipality of Montevideo (with the Udelar Law School), to the Public Defender if you need a lawyer and can't pay for one, and to the Peace Courts for rental disputes. Since 2020, a mandatory mediation or conciliation stage comes before any lawsuit.

What is the new rental law (LUC) and how does it differ?

The Urgent Consideration Law (LUC, Law 19,889 of 2020) created an alternative "no-guarantee lease" regime, with a faster eviction process in case of default. It did not repeal the traditional regime of Decree-Law 14,219: both coexist today, and when you sign you choose which one applies. We cover it in detail in the LUC contracts section above.

Sources

This guide is for informational purposes only and does not constitute legal advice. For specific situations, consult a lawyer or notary specializing in rental law.

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