Renting Without a Guarantee in Uruguay 2026: How the LUC Regime Works
INGAR · · Rentals
Yes, you can rent without a guarantee — but it has to be set up correctly
Uruguay has a legal regime that allows a home to be rented without a deposit, a surety bond, a guarantee administered through the Contaduría General de la Nación —commonly available to public employees and other eligible groups— or a personal guarantor. But “no guarantee” does not mean “no contract” or “no obligations”.
It is an optional alternative created by Ley 19.889, the 2020 omnibus law known in Uruguay as the LUC. The landlord and tenant must expressly choose it and document it properly. Simply putting “LUC lease” in the heading is not enough.
What the LUC requires
- It applies to property used as a home, subject to the specific exceptions in the statute.
- The lease must be in writing and state its term, rent and the parties’ express choice of this regime.
- There can be no guarantee of any kind in the landlord’s favor.
- No more than one month’s rent may be paid in advance; that money cannot be held as a security deposit.
- The law provides special shortened statutory deadlines for eviction proceedings, but eviction is never automatic or out of court.
- If the property is sold, the lease is enforceable against the buyer if it was properly registered.
Is the guarantee holding up your rental? There may be more than one way to approach the situation, but not every option works for every property or applicant. INGAR assesses the circumstances, looks for a solution the landlord may accept and guides you through the transaction. Tell us about your situation on WhatsApp.
What “renting without a guarantee” really means
In a conventional lease, the landlord may be protected by a deposit, a surety bond, an institutional guarantee or a personal guarantor. Under this regime, the opposite is true: the absence of guarantees is a legal condition.
If money is held to cover damage or debt, or if there is a policy, guarantor or other security in the landlord’s favor, the lease does not meet that condition. The label given to the document or the money does not change how it actually works.
The other obligations remain. The tenant must pay the agreed amounts, look after the property and return it when required; the landlord must honor the lease and comply with the applicable rules.
The five essential requirements
Article 421 requires all five of the following conditions to be met together:
- The property must be used as a home, subject to the specific exceptions contemplated by the statute.
- There can be no guarantee of any nature in the landlord’s favor.
- The lease must be in writing.
- The term and rent must be expressly stated.
- Both parties must state in writing that they intend to be governed by this regime.
If any one of them is missing, article 421 provides that Decreto-Ley 14.219 or Uruguay’s Civil Code applies instead, as the case may be. This is why the regime should not be treated as a clause to copy and paste: first, the parties need to confirm that it fits the actual transaction.
Can there be a deposit or a month paid in advance?
A security deposit is not allowed. Money held to answer for debts or damage is security in the landlord’s favor and is incompatible with this regime.
The law does allow up to one month’s rent to be paid in advance. That payment must cover a rental period; it cannot be kept until the end as though it were a deposit. If it operates as security, what matters is its substance rather than the name given to it.
When the landlord will only consider a rental backed by security, other alternatives need to be assessed. You can compare them in our guide to rental guarantees in Uruguay.
What the lease should address
Term, extension, currency and adjustment
The parties may agree on the term within the applicable general limit. If neither party gives notice to the contrary during the 30 days before expiration, the law provides for an extension equal to the original term.
Rent can be set in Uruguayan pesos, foreign currency, Unidades Reajustables or Unidades Indexadas. The adjustment method may also be agreed. If there is no agreement and rent is in pesos, it is adjusted annually by Uruguay’s consumer price index.
Inspections
The landlord’s ability to inspect the property must be agreed; it does not arise automatically. To prevent disputes, the lease should specify notice, hours, the purpose of the visit and how access will work.
Sale of the property
Article 423 provides that the lease becomes enforceable against third parties upon registration. If the property is sold, the buyer must honor it when the lease has been properly registered so that it is enforceable against the buyer.
Without registration, the lease continues to bind those who signed it, but it does not have that protection against the purchaser. An escribano —a Uruguayan notary— can determine the appropriate steps in the particular case.
Eviction: special deadlines do not mean immediate removal
The LUC establishes special court procedures and deadlines for nonpayment and expiration of the lease. It does not allow a landlord to change the locks, remove belongings or recover the property unilaterally: a judge must always be involved.
The statutory periods for individual stages are not the total length of the case. They are tied to rulings, service and potential defenses. In particular, removal deadlines run from the date on which the tenant is served with the relevant order, not from the day rent first goes unpaid.
A promise such as “you will recover the property in a few days” is therefore misleading. Actual timing depends on the lease, the grounds for eviction, service of process and the course of the proceedings.
What if the absence of a guarantee is faked?
Article 459 provides for a fine of between one and five months’ rent when a landlord fakes the absence of security in order to claim this regime. A judge sets the amount, and the money benefits the tenant.
Not every inconsistency in a lease automatically produces that penalty: the sham contemplated by the statute must exist and the issue must be decided in court. Even so, it is another reason for the document to reflect the transaction accurately.
Who might find this useful?
For a tenant, it may be an alternative when obtaining a guarantee is the main barrier and the landlord is willing to consider the regime. The trade-off is that the law provides shortened court deadlines if the tenant defaults.
For a landlord, it may make sense when they are prepared to give up additional security and value the special procedure created by law. That does not eliminate the risk of nonpayment or ensure that a debt will be collected.
It is not a universal solution. Viability depends on the property, the parties’ profiles, what the landlord will accept and whether the lease is documented correctly.
What to check before signing
- whether the intended use and transaction can fall under article 421;
- that there is no deposit, bond, guarantor or disguised security;
- that the term, rent, currency and adjustment are clear;
- that the choice of this regime is stated expressly;
- that the inspection and notice provisions are not ambiguous;
- that registration and the consequences of a sale have been considered.
Think this alternative may work for you? Talk to us before making a reservation or taking on a commitment. INGAR can assess commercial viability, look for a compatible property and help you identify which points should be confirmed with a lawyer or escribano. Contact INGAR.
Frequently asked questions
Does the landlord have to accept a no-guarantee lease?
No. The regime is optional and requires the express agreement of both parties.
Does no guarantee mean no written lease?
No. A written lease is one of the indispensable requirements.
Can I be asked to pay one month in advance?
Yes, up to one month. It must pay rent for a period and cannot be held as security.
Can they request a deposit and still call it a LUC lease?
Not under this regime. The absence of guarantees in the landlord’s favor is a condition of article 421.
Can the landlord enter whenever they want?
Inspection must be agreed. The lease should define notice, permitted hours and the purpose and manner of access.
Can I be evicted without a court case?
No. The deadlines are special, but eviction requires judicial proceedings.
What happens if the landlord sells?
The buyer must honor the lease when it has been properly registered and is enforceable against third parties.
Is this better than obtaining a rental guarantee?
It depends. The regime can improve access, but it distributes risk differently. The options should be compared in light of the tenant, the property and what the landlord is willing to accept.
The bottom line
The LUC allows a home to be rented without security in the landlord’s favor, provided both parties agree and the lease meets every statutory requirement.
The option exists, but it should not be improvised. If the guarantee is what is blocking the transaction, it is worth assessing the situation before giving up on the rental.
This article provides general information and is not a substitute for advice from a lawyer or escribano. How the law applies depends on the lease and the particular circumstances.
Sources
Legislation consulted in the updated version available through IMPO, Uruguay’s official legal information service, on August 26, 2026.