Trust is everything when dealing with real estate in the Southern Cone, and new data suggests there is a high level of mutual trust and confidence among Uruguayans when it comes down to rental transactions.
According to a new article in InfoNegocios, 29.1% of all rentals in Uruguay are made with verbal contracts. The data come from Uruguay’s National Statistics Institute (NSI) which examined the rental landscape nationwide. According to the report, the verbal agreements were more common in rural areas and small towns where residents are more likely to know one another.
The NSI report also shed light on the use of guarantees in Uruguay real estate rentals. The most common guarantors for renters in Uruguay were a friend or family member (32%) followed by an accountant (21%) and financial service firm Anda (13%). Just as mutual trust is reflected in the verbal contracts, almost 10% of all real estate rentals in Uruguay were made without any sort of guarantee.
And while foreign visitors to Uruguay probably shouldn’t get their hopes up regarding the possibility of renting a property without a verbal guarantee, it is comforting to know that Uruguay is a country where most people value the good word of their neighbors. Or as InfoNegocios sums it up, “Trust continues to be an asset when it comes to doing business in Uruguay.” Little wonder that Uruguay continues to be one of the most stable and transparent markets for investors in Latin America.
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