Temporary Rental
Real estate brokerage for temporary rentals is governed by a contract, which generally specifies:
- Contract date
- Property to be rented and its address
- Rental period
- Agreed price
- Real estate commission
- Deposit for confirmation
- Security deposit amount
ASPECTS TO CONSIDER
Both tenant and owner pay a real estate commission.
In some cases, the delivery and return times of the property may be established.
Services included, for example, maid service, internet access, cable TV, gardening, etc., may be detailed in the contract or stipulated during negotiation.
It is common for the price not to include utilities and some services, for example, electricity, water, telephone, gas, linens, the cost of final cleaning, etc.
Confirmation is made by paying the agreed deposit. Generally, 50% of the agreed price is the standard. The balance and security deposit are paid upon move in.
It is customary to stipulate a penalty equal to the deposit amount if the tenant withdraws from the rental. The method varies by real estate agency and the property owner.
Payment for the aforementioned utilities and extras is due upon departure. In some cases, it is debited from the security deposit, in others, through a separate settlement.
The security deposit held by the real estate agency is returned upon departure after deducting any expenses for damages caused during the stay. In some cases, there may be a longer period than the departure date for this settlement.
The real estate commission for temporary rentals is exempt from VAT for non-resident tourists in Maldonado Department.
The owner must pay income tax (for both resident and non-resident individuals).
SOURCE https://cipem.org.uy/servicios/alquiler-temporario/
ANNUAL RENTAL
Real estate brokerage for annual rentals is governed by a free contract, which generally specifies:
- Contract date
- Tenant and owner information
- Property to be rented and its address
- Rental period
- Agreed price and payment method
- Real estate commission
- Security deposit
Aspects to consider
Both tenant and owner pay a real estate commission.
Generally, the term established in the contract is one year with the option to extend to two. The usual payment method is monthly in advance within the first ten days of each month.
Commercial rental contracts can have longer periods, for example, two years with the option to extend to five.
The price does not include utilities, such as electricity, water, telephone, gas, etc. The most common forms of security include real estate, cash deposit, or security insurance.
The real estate commission for the annual rent includes VAT.
The owner must pay income tax (for both resident and non-resident individuals).
Commission for annual rental of a house
Free contract: contracts in foreign currency are accepted 8% + VAT for each party per year of the contract.
Two year contracts in local currency charge 1 month’s rent + VAT for each party.
Commission for annual rentals of commercial premises
Free contracting: contracts in foreign currency are accepted – 8% + VAT for each party per year of the contract.
For a 2-year contract in local currency, each party is charged 1 month’s rent + VAT.
For a 5-year contract in local currency, each party is charged 3 months’ rent + VAT.
SOURCE https://cipem.org.uy/servicios/alquiler-anual/
