Lease Agreements in Guatemala: A Guide for Landlords and Tenants

## Lease agreements in Guatemala A lease is the contract through which one party (landlord) grants the use of a property to another (tenant) in exchange for periodic rent. In Guatemala, it is regulated by the **Civil Code (Decree-Ley 106)**, articles 1700 to 1750. --- ## Types of leases ### Residential lease For residential use. The law protects the tenant in certain aspects, such as minimum term and termination grounds. ### Commercial lease For commercial spaces, offices, or warehouses. Greater freedom of contract between the parties. ### Rural land lease For farms and agricultural land. Subject to specific Civil Code rules. --- ## Essential contract clauses 1. **Party identification:** Names, DPI, contact information 2. **Property description:** Address, measurements, characteristics 3. **Property use:** Residential, commercial, mixed 4. **Rent:** Amount, currency, payment method, payment location 5. **Duration:** Contract term, start and end dates 6. **Deposit:** Generally 1 month's rent as guarantee 7. **Maintenance:** Who pays major and minor repairs 8. **Utilities:** Water, electricity, internet — who pays 9. **Termination grounds:** Non-compliance, non-payment, need for the property 10. **Update clause:** Rent adjustment mechanism (if applicable) --- ## Rights and obligations ### Landlord: - Deliver the property in good condition - Guarantee peaceful use of the property - Perform major (structural) repairs - Pay property taxes (IUSI) ### Tenant: - Pay rent on time - Use the property as agreed - Care for the property and perform minor repairs - Return the property in the condition received (normal wear excepted) - Not sublease without the landlord's authorization --- ## Step-by-step to formalize a contract ### Step 1: Agree on terms The parties negotiate the price, term, use, and conditions. ### Step 2: Draft the contract A lawyer drafts the contract with all essential clauses. ### Step 3: Signing Both parties sign. A public deed is recommended for greater security, though not mandatory. ### Step 4: Property delivery The landlord delivers the property. A delivery act with an inventory of the property's condition is recommended. ### Step 5: First rent and deposit payment The tenant pays the first rent and the security deposit. --- ## Documents you will need - Party identification (DPI) - If the landlord is a company: incorporation deed and legal representation - Registry certification of the property (to verify ownership) - Signed lease agreement - Property delivery act --- ## Authorities involved | Authority | Role | |---|---| | Authorized notary | Drafts public deed (if applicable) | | Civil Courts | Dispute resolution | | Municipality | IUSI and operating licenses | --- ## Legal basis - **Civil Code** (Decree-Ley 106), articles 1700-1750 (lease) - Available at: www.congreso.gob.gt *This article is informational and does not constitute legal advice.*