Learning Uruguay

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How is rent paid? How is rent collected?

Posted by urufish on June 21, 2007

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There are several common ways for landlords to collect and for you to pay rent.  This is not an exhaustive list by any means, but it sums up all the ways I’ve paid and collected. 

  • Administration.  You hire/you pay an administrator to collect rent for you.  Most real estate agencies provide this service.  If you own a lot of rental properties, you may go this route.  
  • Owner collects/pays to.  An owner can drop by every month and collect the rent or have it mailed to them.  If picked up, it’s almost always cash.  If mailed, it is by cheque. 
  • Payment in advance.   I’ve seen this done about 30% of the time.  You pay/collect for the whole year or half the year up front.  Usually in cash, but sometimes by cheque. 
  • Autodebit.  This is quite common if the owner has a bank account.  It is one of the most common ways people pay and collect rents in Montevideo.  See the forms attached for an idea how this works. 

forms-abac-persona-fisica.pdf

  • Abitab/RedPago.  These are the little shops that many Uruguayans pay their bills at.  Before autodebit (see above), these were much busier.  There have been many posts on this kind of business.   That’s probably because we see nothing like it up north.  In the North, the banks took this business on at the beginning, leaving no room for another industry to popup.  Here, banks for some reason didn’t want to do this, so up popped these bill paying shops.  These are often used by the administation agencies, like the reference above.  The administration company sets up an acocunt with RedPago or Abitab (the biggest) and when you get your monthly invoice, (you need an invoice to pay a bill in an Abitab/RedPago), it states which agencies you can use. 

We have 4 rental properties.  One in the boonies, uses an administrator.  The other 3 all use autodebit.  With autodebit, I find it easier to manage things.  If you’re a northerner who is looking to invest your retirement savings in rental properties (instead of stocks or bonds, etc), autodebit is a very simple and painless way to collect the rent. 

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One Response to “How is rent paid? How is rent collected?”

  1. It’s fantastic that you are getting ideas from this post as well as from our discussion made here.

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