Ecuador Debates Rental-Deposit Reform As Tenants Report Guarantee Problems

Ecuador's rental-deposit rules are getting attention as tenants and landlords wait on a possible reform.

The current tenancy law does not require parties to deliver a guarantee or deposit when signing a lease. Once a contract is signed, however, the guarantee and return conditions become mandatory for both sides.

The Common Problem

The deposit often corresponds to one or two months of rent and should be returned to the tenant at the end of the contract unless there are proven damages or unpaid obligations.

Repairs must be justified and their cost verified before being deducted from the guarantee.

One tenant example described seven rented apartments in Guayaquil and Samborondón where the guarantee was not returned. That renter said the deposit was always equal to two months and that rents ranged from $400 to $650 per month.

Reform Status

The National Assembly is debating a reform to the tenancy law that would set maximum limits and a return mechanism for guarantees. The proposal passed first debate in April 2026.

For expats renting in Ecuador, this is a practical paperwork issue: written conditions, handover photos, inventories, and proof of repairs can matter as much as the rent number.