A recent study by national newspaper La Nacion estimates that Costa Rica has more than 3,000 homes and living spaces available to foreign visitors looking for rental options. These properties… Read more » Continue reading →
A recent study by national newspaper La Nacion estimates that Costa Rica has more than 3,000 homes and living spaces available to foreign visitors looking for rental options. These properties are often listed on sites such as Airbnb, HomeAway and VRBO, and many longer-term rental opportunities do not factor in the cost of utilities such as water and electricity. This opens doors for nefarious homeowners to perpetrate utility fraud on unsuspecting tenants.
The utilities fraud scheme typically works like this: A potential (usually foreign) renter is informed by the landlord that they will be responsible to pay for the utilities they consume, which typically include water, electricity, cable television, and Internet. This often comes up when the rental term is longer than three weeks. Since visitors to Costa Rica tend to spend most of their time outdoors, they don’t expect to pay a lot in terms of utilities that they will not consume.
Some foreign tenants in Guanacaste and other vacation hotspots in Costa Rica have been surprised with exorbitant demands from their landlords (either homeowners or property managers) with regard to utilities. Many renters wonder how utilities could cost so much in this country and simply pay the amount that is demanded of them, though not reminding themselves to book a hotel the next time they visit.
Refusing to pay unreasonable utilities may prompt unscrupulous landlords to call the police or threaten tenants with lawsuits or even visits by immigration officials. The best way for renters to deal with these unpleasant situations is to remain calm and request a detailed account of utility consumption; in other words, tenants should ignore the idle threats of summoning the police (there is no debtor’s prison system in Costa Rica) and demand to see a current or even previous bill and an explanation of the charges.
If the cost of utilities seems outrageous, there is most likely something “fishy” going on, be forewarned that this utility fraud process does take place, and make the right decision to save your money.