In Curacao, but also in Bonaire, we see that more and more is being invested in real estate. For example, Fundashon Kas Popular (FKP) has organized a viewing for the monuments that they now have available for sale. These monuments are due for proper maintenance, which costs money, and the Foundation currently has those finances
When buying a monument from FKP, for example, it is good to think about how you are going to earn back your investment. Selling is an option, but it may be more interesting to rent it out.
On the islands, there is a strong growth in the demand for rental space. The rental market is flourishing and therefore offers a perfect investment opportunity. Private individuals are looking for a home and entrepreneurs for an office to establish themselves. Renting out modern office space with an all-in service can then be an option to earn back your investment (and more).
In this article I will briefly discuss what you need to consider when renting out a home or office space in Curaçao.
In practice, it appears that most entrepreneurs are not familiar with the tenancy law of Curacao and therefore also not with the rights and obligations of the landlord and tenant that come with the lease. In that context, the maintenance of the built property is a cost item for the landlord.
The landlord is required by law to take care of the maintenance of the rented property. A tenant pays for that. Only minor repairs are at the expense of the tenant. Minor repairs can include arranging and paying for interior painting, replacing doorknobs, replacing a toilet seat. Parties can make agreements about what is included in minor repairs falls to avoid discussions.
It may happen that the landlord is financially unable to bear the costs of maintenance. In that case, the tenant can assume the costs and offset them against the rent. This is regulated by law. In a recent case, we assisted a landlord who had not carried out maintenance on the property for years due to his financial inability. As a result, the tenant deducted 20% from the rent, but did not incur any costs for necessary repairs. The latter is of course not the intention. The tenant can only invoke the right of offset if the tenant assumes the costs that the landlord should have incurred.
The previous situation ultimately led to the landlord terminating the lease. When terminating the lease by the landlord, the permission of the Rent Assessment Committee is required. In a subsequent article I will elaborate more on the termination of the lease and the points that are important in that context.
If you would like to know more about renting in Curacao, please contact contact with me. I would love to have a conversation with you!
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