Rent Freeze & No Evictions in Panama

Last activity 04 August 2020 by Steven Rich MBA

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Steven Rich MBAActive member04 June 2020 16:25:00

A month ago, the President of Panama issued Executive Decree 145 which froze all rents and prohibits evictions for all housing rentals.

Now, Panama landlords are claiming that when a lease expires they can raise the rent. Their lawyers argue that the freeze only applies to current rents under an existing lease, When it expires, Executive Decree 145 will not apply.

This makes no sense as I lived in 2 rent freeze cities in other countries and landlords couldn't raise rents even when leases expired. After all, the purpose for a lease is to freeze the rent until it expires anyway. So, freezing rents and preventing evictions should kick in when a lease expires.

A rent freeze decree with a non-eviction order should mean that even if a lease expires the tenant should continue paying the current rent. The landlord won't be able to cut off lights, water, or cable TV/internet under the decree. Or, evict the tenant until after the current coronavirus emergency ends.

Any expats experiencing similar landlord problems in Panama?

Any Panama lawyers able to explain Executive Decree 145?

Steven Rich MBAActive member10 June 2020 17:09:41

I see 96 views of this posting, but no replies.

Are all the expats in Panama happy with their leases?

No one experiencing problems with a lease renewal?

Like your Panama landlord raising the rent in spite of the President's Executive Order freezing rents and preventing evictions until after the current coronavirus emergency lockdown ends?

kristc99Serial expat10 June 2020 17:35:29

881

No problems here (in David) but we haven't lost income or ability to pay. A lady I know said her tenants haven't been able to pay so she is hurting for money, but she said nothing about asking them to leave. This is hardly an overview though. You might look for Bob Adams on YouTube. He's in Panama City and keeps track of what's going in on the country, especially related to business, economy, and real estate.

Steven Rich MBAActive member10 June 2020 18:06:04

kristc99, Thanks for your reply and suggestion.

I know Bob Adams, and you are right, he is a good resource for information about Panama. But, he focuses on population patterns and statistics. He is not a lawyer and doesn't deal with "legal" issues.

Anyone else out there with thoughts on the President's Executive Order on Rent Free and No Evictions in Panama until the coronavirus emergency ends?

Steven Rich MBAActive member03 August 2020 15:27:40

Lat July 24, I posted an answer to this question in a separate posting on this forum.

It saddens me that this older post is getting more attention than the one which best answers the question I originally posed here.

Check out the other post I made in this forum to see how the Moreno & Moreno law firm in Panama City answers this question:

https://www.expat.com/forum/viewtopic.p … 03#4912662

Steven Rich, MBA

kristc99Serial expat03 August 2020 17:33:06

881

It seems rental situations, leases, etc haven't been a big concern among expats, which seems like a good thing. What I hear most from expats is frustration about inability to move about within the country, or internationally, and the restrictions of the quarantines. I only know of one person who has been asked to leave their rental home (for trumped up BS reasons, gringa landlord) but it ended well since he got a better place within a couple days.

Steven Rich MBAActive member03 August 2020 17:42:26

Krist,

Thanks for your input.

I guess most expats who come to Panama are retired and buy a home or a condo apartment. So, they have no expired leases or rent increases to worry about.

kristc99Serial expat04 August 2020 21:52:29

881

I think there are expats who rent, but many are retired or work remotely. Those who have businesses here may be a risk however.
But, I don't think it's anything like what's going on in the US. This article made me think of your posts here - https://apnews.com/833d91877e2f0fa913c5 … dium=email When I tell people here about all the people in the US living in the streets even before the pandemic, they have a hard time believing it.

Steven Rich MBAActive member04 August 2020 22:59:50

kristc,

Homelessness is a global problem. Every country I visited in my life (around 35) all had homeless people.

Panama is no exception, Hundreds of homeless sleeping in parks and card board boxes in alleys and the streets in Panama City too. The Kunas in Guna Yala and the other Native Indians live in constant poverty.

When the President's Executive Decree 145 ends in 6 months or so after the "national emergency" ends, all the rents not paid by renters here will become due. Then, the evictions will begin.

Yes, homelessness is a big problem in the U.S. cities, but its a global problem too.

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