When I first arrived in Cuenca, Ecuador, I had no idea how complicated the rental market would be. As a newcomer looking for a place to call home, I quickly realized that securing the right home in this city requires more than just a good eye for a beautiful space. It takes patience, strategy, and, as I would soon learn, a fair amount of local knowledge. I’ve now spent a lot of time navigating this landscape, and I want to share what I’ve learned to help fellow expats make sense of Cuenca’s ever-evolving rental scene.
Joining me for this video was our Rental Manager, Esteban Mendieta and Attorney Sabrina Candela. I do encourage you to watch the detailed video as this summary article really just scratches the surface.
Why Are Prices Rising?
Similar to many cities since COVID, rental prices have also increased in Cuenca. The market has changed in recent years, and while inflation plays a role, the bigger picture involves a perfect storm of factors. Affluent Ecuadorains and expats from larger cities like Quito and Guayaquil are flocking to Cuenca, driven by security concerns and the allure of a quieter, more affordable lifestyle. But with them comes higher demand, and that demand is pushing prices up.
On top of this, the rental market is attracting more professional property investors, shifting the focus away from casual landlords to people who are more business-savvy and looking to cover up to 80% of their property costs through rent. This means that more property owners are looking to maximize their rental yield by increasing rents.
Most agents don’t want to push back against landlords overcharging out of fear for losing the listing altogether. As far as I’m aware, YapaTree is the only real estate agency that has an anti-gringo pricing policy. So whilst we do push back against landlords, we are just one player with limited influence over the market.
Location, Location, Location
One thing I learned early on is that location really is everything here in Cuenca. Many of the most desirable areas especially for expats are within 5-7 secure Cuenca neighborhoods. These areas are near the historical center and often offer beautiful river views. Security is a huge priority for many expats, and we’ve found that buildings with generators are also in high demand because of the current power outages. Honestly, having a building with a generator has become a bit of a luxury, and if you find one, it’s definitely worth considering. Also bear in mind that the generator scarcity will largely become irrevelant once rains return and the rolling blackouts stop – we hope this happens very soon.
Red Flags and Negotiation Culture
Now, let me share a bit of advice when it comes to working with rental agents. If a listing doesn’t have a price listed, that’s your first red flag. It’s often a sign that the agent is either trying to bait and switch or they’re simply not transparent. And if an agent is exclusively targeting expats, be cautious. Not all agents are like this, but I’ve encountered a few that seem more interested in making a quick commission than helping you find the right place.
Negotiation is a big part of the rental culture here, so don’t be afraid to haggle. Cuenca is not like some places where prices are set in stone. Take your time, ask questions, and don’t be afraid to walk away if the price doesn’t feel right. It might seem daunting at first, but once you get the hang of it, you’ll get better deals and it can also help understand the local culture.
Legal Landscape: What You Need to Know
When it comes to the legal side of things, renting in Ecuador has its own set of rules that many expats may not be aware of. One of the biggest surprises for many is learning about the maximum rent regulations. The government actually sets a formula for calculating the maximum legal rent based on the property’s assessed value and taxes. Sounds complicated, right? It is actually a simple formula (which we run through in the video) but the main take-away is that these legal limits are usually much higher than what landlords normally charge, meaning you’re unlikely to pay more than the legal limit.
However, this doesn’t meant that some landlords won’t try and charge significantly more than the market rate. For example, there are no regulations that stop a landlord from charging an expat more than a local (or vice versa). This is commonly referred to as “gringo pricing” and it’s something that many expats are understandably frustrated about when they realize they’ve been overcharged.
Contract Clauses and What to Watch For
Another aspect of renting that can catch many off guard is the complexity of lease contracts. For example, clauses that waive your right to challenge rent prices can sometimes be tricky. Depending on the specific terms of the contract, these clauses might or might not be enforceable, so it’s critical to read every part of your lease carefully and get help from an experienced advisor or attorney if you don’t understand your rights and obligations under the lease.
One of the main differences that may catch you off guard is that tenants in Ecuador are legally responsible for maintenance related to natural wear and tear. You’re likely coming from a place where landlords typically handle this, so this be come across as a bit of a culture shock. Make sure you understand what the lease stipulates in terms of maintenance and repairs to avoid unexpected costs.
Practical Tips for Renters
Here are a few tips to help navigate the rental process:
- Check the municipal website to understand the maximum rent calculation for your property. It’s a great way to make sure you’re not being overcharged (see video above for an example).
- Be ready to negotiate extra charges if you’re renting a furnished unit or if utilities are included in the rent.
- If a property feels too expensive or the terms of the contract seem off, don’t be afraid to look for another place. There are likely other rental options in Cuenca, and patience can often lead to better deals.
- And finally, always read your lease carefully, especially the clauses related to rent increases and deposits. If anything feels unclear, don’t hesitate to consult a local attorney like Sabrina Candela, who specializes in helping expats navigate the legal side of renting.
The Bottom Line: Be Prepared and Ask Questions
The Cuenca rental market can seem overwhelming at first, but with the right approach, you can avoid the pitfalls and find a great place to call home. Our biggest piece of advice is simple: be prepared, ask plenty of questions, and always trust your instincts. If something feels off, it probably is. Don’t settle for less than what you deserve, and remember that negotiating and knowing your rights are key to getting the best deal possible.
Buena suerte!
