Long-Term Real Estate Rental in Nicaragua: A Complete How-To Guide

Published on January 17, 2026 and written by Cyril Jarnias

Moving to Nicaragua for the medium or long term is attracting a growing number of retirees, remote workers, and families seeking lower living costs and year-round sunshine. But behind the images of Pacific beaches and colorful colonial towns, long-term rentals follow precise rules, often very favorable to landlords. Understanding this framework, the real prices, and local practices is essential before signing a lease or sending a wire transfer.

Understanding the Legal Framework for Renting in Nicaragua

Before even visiting an apartment, it is essential to know the legal environment you are stepping into. Nicaragua operates under a civil law system, very codified, where property rental is primarily governed by the Civil Code of the Republic of Nicaragua, in force since 1904, supplemented by an Urban Property Rental Law (Ley de Arrendamiento Urbano).

The lease is a bilateral contract: the landlord (lessor) and tenant (lessee) agree by mutual consent. The contract can be private (a private document) or elevated to a public deed before a notary. For up to four years, a simple private contract is legally sufficient; beyond that, a Public Deed (Escritura Pública) is mandatory and, in any case, highly recommended for any high-value or long-term lease.

The maximum duration for a standard lease contract is ten years, with a particular exception for long-crop agricultural leases, which can go up to twenty years. If the duration is not specified, the law generally presumes a one-year lease, depending on the property’s use.

Lease Types and Duration: Flexibility vs. Security

In Nicaragua, the main formulas are the fixed-term lease, the month-to-month lease, and, in practice, situations of more informal occupancy.

The fixed-term lease offers clear stability: six months, one year, two years or more, with a known end date. This is the most common formula for long-term residential rentals, especially in cities like Managua, Granada, or León, or in beach areas like San Juan del Sur and Tola.

The renewable monthly lease (month-to-month) is common in working-class neighborhoods or for simple housing. It offers great flexibility: the contract automatically renews each month, generally with thirty days’ notice to leave or for the landlord to reclaim the property.

For any lease longer than four years, the law requires a notarized deed. Even below this threshold, using a notary significantly improves legal security: better evidentiary value, greater clarity of clauses, and controlled signature of the parties.

A Well-Crafted Nicaraguan Lease Contract: Essential Elements

A well-drafted lease contract is the best ally of a foreign tenant in a country where generic templates downloaded online are often not adapted to local law. In Nicaragua, a serious lease includes several essential blocks.

Identification of Parties and Property

The contract must first accurately identify both parties. For the landlord or tenant as a natural person: full name, identification number (cédula or passport for a foreigner), address. For a company: corporate name, tax number (RUC), and name of legal representative.

Next, the property description must be detailed: exact address, type of property (house, apartment, condo), number of bedrooms and bathrooms, included furniture, general condition, additional services (pool, garden, parking, security, internet), presence or absence of air conditioning. The more precise the description, the fewer gray areas there are when returning the property.

Duration, Rent, and Payment Terms

The lease must clearly state the agreed duration: start date, end date if it’s a fixed-term contract, and conditions for possible renewal. If notice is required to vacate, it is mentioned here: thirty days or sixty days are the most common deadlines.

A point often overlooked by newcomers: the contract can provide in advance for a periodic rent increase, as an annual percentage or a review after a certain period. It is therefore prudent to check if there are local rent increase caps (notably in Managua) and to negotiate these clauses from the start.

Security Deposit: A Nearly Mandatory Practice

The law does not require a security deposit, but in practice almost all landlords ask for one. Customs are fairly uniform: one month’s rent as a deposit is the norm, two months maximum for upscale or high-end furnished properties.

Utilities, Maintenance, and Use of Property

In Nicaragua, utilities are not always included in the rent. The contract must therefore specify who pays for electricity (often the heaviest expense, especially with air conditioning, in a country where kWh can reach about $0.50), water, gas, internet, and cable TV. By default, it is generally the tenant who assumes these costs, unless the landlord has provided for an all-inclusive package.

The lease must also define the type of use authorized: strictly residential, mixed, or commercial. Authorizing a professional activity in a residence can have tax implications for the landlord (increase in municipal IBI tax, for example), who may therefore be cautious on this point.

Termination Clauses and Penalties

The section on early termination is crucial. Nicaraguan leases often stipulate one or two months’ notice to vacate before the term, accompanied by possible penalties, for example, a fraction of remaining rent or non-return of part of the deposit.

Conversely, the landlord can also reclaim the property in case of non-payment of rent, significant damages, unauthorized subletting, or use contrary to the contract terms (commercial activity when only residential use is allowed, for example). The right to eviction is inherent to the landlord, even if not written in black and white, but the procedure must follow the judicial route.

Finally, the contract must be signed by both parties and, ideally, by two witnesses. Going to a public notary to “elevate” the contract significantly strengthens its legal value, which is particularly recommended for long-term or high-value contracts.

Rights and Obligations: What Landlords and Tenants Can (and Must) Do

Within this structured but landlord-friendly framework, each party has rights and duties to respect.

The landlord is obliged to deliver a property in good condition and to maintain habitable living conditions: functional electrical and sanitary installations, access to potable water, safe structural condition. They must also respect the tenant’s privacy: no entry without prior notice or agreement, except for an obvious emergency (water leak, fire, etc.). In return, they have the right to timely rent payment and can initiate steps to recover their property if the contract is violated.

In practice, the system remaining pro-landlord, a foreign tenant is well-advised to prioritize negotiation and mediation before considering a long, costly, and uncertain legal recourse. Documenting all written exchanges, keeping proof of payment, and documenting the property’s condition upon entry and exit are habits to adopt systematically.

Where to Rent in Nicaragua? Overview of Cities and Prices

One of Nicaragua’s great assets is the very low cost of rent compared to North America or Europe. Overall, rents are advertised as being nearly 80% lower than in the United States, explaining the influx of retirees and remote workers.

Prices vary greatly depending on the city, neighborhood, view, and amenities (pool, air conditioning, security, furniture). The most sought-after destinations by expatriates form a first reference point.

Managua: Capital, Business, and Affordable Rents

Managua concentrates the country’s economic activity, its international airport, and a good part of the modern infrastructure. Rents, however, remain significantly lower than in major regional capitals.

A one-bedroom apartment in the city center rents on average around $250 per month, with an observed range between $120 and $400. On the outskirts, average rents drop to $190, with possible offers from $70 in less sought-after neighborhoods. To better visualize the range, here is a summary table:

Type of Housing in Managua	Location	Average Monthly Rent (USD)	Indicative Range (USD)
1-Bedroom Apartment	City Center	257	120 – 400
1-Bedroom Apartment	Outskirts	190	70 – 250
2-Bedroom Apartment	Center / Urban Areas	600	—
2-Bedroom Apartment	Outskirts	500	—
3-Bedroom Apartment	City Center	437	250 – 1,200
3-Bedroom Apartment	Outskirts	449	400 – 498
“Comfortable” 3-Bedroom House	City (Preferred Neighborhoods)	600 – 700	—

In more upscale neighborhoods like Las Colinas, Santo Domingo, Bolonia, Los Robles, El Dorado, or Altamira, rents are higher but still well below North American standards. Many properties there are offered fully furnished, often with internet, water, cable, and 24/7 security included, for $350 to $550 per month. Concrete examples report a 2-bedroom apartment for $550 including water, cable, internet, and security.

San Juan del Sur and Tola: The Beach Dream… at Very Variable Prices

San Juan del Sur and the Tola coast (with Popoyo, Rancho Santana, Hacienda Iguana) concentrate a large part of the “postcard” rentals: surfing, picturesque bay, villas with pools and ocean views. Here, the diversity of supply translates into a wide price range.

For higher-end properties, the figures change scale. A 3-bedroom house with a pool and sea view generally negotiates between $1,200 and $1,800 per month. In Rancho Santana, a luxury property with panoramic view, private pool, and full services can exceed $2,000 monthly.

Type of Housing San Juan del Sur / Tola	Main Characteristics	Indicative Monthly Rent (USD)
Studio / Basic 1 Bedroom in Town	Furnished, little or no A/C, no pool	400 – 500
1 Bedroom Outside Center	Simple, furnished, peripheral neighborhood	250 – 625
“Nica-style” 1 Bedroom Furnished	No A/C, no pool	300 – 400
2-Bedroom Condo with Sea View	Air-conditioned, near beach	≈ 500
Comfortable Family House near SJDS	Garden, privacy, access to amenities	≈ 1,100
3-Bedroom House with Pool & Sea View	Upscale, often in gated communities	1,200 – 1,800
High-end Property at Rancho Santana	240° view, private pool, many services	2,000+
Beachfront House	Depending on beach, size, and amenities	650 – 2,000

Several specific examples illustrate this market: a small 1-bedroom unit in a community near San Juan del Sur was rented for $450 per month, all-inclusive (water, electricity, cleaning, security, cable, and WiFi). Later, a 2-bedroom, 2-bathroom in the same area rented for $700, with an average of $150 for electricity on top.

Granada, León, and Other Colonial Cities

Granada and León attract with their colonial architecture, lively streets, and often softer rents than on the coast.

In Granada, a nice 2-bedroom apartment can be found for around $550 per month. A furnished 1-bedroom typically rents for between $350 and $600, while a 3-bedroom family house “expat-ready” (ready to live in, with furniture adapted to North American standards) falls within a range of $700 to $1,200.

In León, slightly cheaper than Granada, a furnished 1-bedroom generally negotiates in the same range of $350 to $600, with a slight downward trend at the lower end.

Finally, in small towns or inland villages, a 2-bedroom house can rent for $500 to $700 per month, while beachfront or resort properties turn more around $900 to $1,500+.

Cost of Living and Overall Budget for a Long-Term Rental

The major interest in renting long-term in Nicaragua is that rent represents only a fraction of an overall extremely low cost of living. Life here is advertised as being 50 to 80% cheaper than in the United States, with rents specifically nearly 80% lower on average.

To get a realistic idea, one must factor in rent, utilities, food, transportation, health, and small services. Here is a simplified synthesis of the main monthly expenses for a typical household.

Essential Utilities and Services

Basic utilities are added to rent and represent a significant item, especially if one overuses air conditioning. Electricity can range from $20 per month for very modest use to $300–$400 for a house with continuous air conditioning. Water generally costs much less, around $10–$20 with a municipal connection, but up to $100 in some private subdivisions or with a pool. High-speed internet (50 Mbps fiber) is found below the $60 mark, and often remains between $25 and $100, depending on the provider (Claro, Movistar, etc.) and the plan.

To better visualize a typical monthly utility budget, it can be outlined as follows:

Expense Item	Monthly Range (USD)	Main Observations
Electricity	20 – 400	Bill highly dependent on A/C usage
Water	5 – 100	City cheaper, private subdivisions more costly
Internet / Cable	25 – 100	50 Mbps Fiber < $60
Gas (Propane)	≈ 15 per refill	For cooking
Total Utilities Single Person	≈ 54	Average water + electricity for small dwelling
Total Utilities Family	≈ 83	Average water + electricity for larger dwelling

Food, Transportation, Services: A Very Affordable Daily Life

Grocery shopping remains remarkably economical, especially if one prioritizes local markets for fruits, vegetables, and meats, and reserves supermarkets like La Colonia or PriceSmart for imported products. A single person typically spends between $75 and $100 per month, a couple between $100 and $300, a family of four between $200 and $400.

Eating out is also very cheap. In a small local comedor, a full meal costs $3 to $5; in a mid-range restaurant, a meal runs between $8 and $15 per plate, while a higher-end dinner exceeds $20 per person. A beer often costs around $1.30, or even less.

Home services (cleaning, gardening, childcare) are another item that radically changes quality of life. A gardener or guard often costs $10 per day, i.e., between $40 and $300 per month depending on days worked; a full-time housekeeper generally earns $150 to $250, while a full-time nanny runs around $250 to $350.

In the end, a couple renting a medium-sized property in a city like Granada or León, with rent around $600–$800, utilities of $80–$100, $250 for groceries, $100 for outings and transportation, can aim for a total monthly budget well below $1,500, explaining Nicaragua’s frequent ranking among the best countries for a low-budget retirement.

How to Find a Long-Term Rental in Nicaragua

In theory, the internet is full of ads. In practice, the best deals are often found on the ground, by walking the streets or activating your local network.

In many towns, landlords simply post a ” FOR RENT ” sign on their house or building. These offers are frequently absent from Airbnb, international real estate portals, or even classified ad sites. To get a decent 1-bedroom for $400–$500 in San Juan del Sur, for example, it is often recommended to arrive, rent a hotel room or guesthouse for a few days or weeks, and then prospect in person.

For those who prefer assistance, local agencies and companies specializing in relocation like Sol & Playa Rentals in San Juan del Sur, Innicanow, or real estate networks like Nicaragua Real Estate Team can offer long-term rentals, often furnished and with additional services (internet, security). The price then generally includes an intermediary margin but brings more comfort and contractual security.

Finally, there are also serviced apartments suited for long stays or professional assignments, offering cleaning, reception, parking, sometimes a gym, with negotiable monthly rates.

Negotiating and Securing Your Lease: Best Practices for Foreigners

Many aspects of Nicaraguan economic life are negotiable, and rents are no exception. Several levers can be successfully used by a tenant wishing to settle long-term.

The length of commitment is the main argument: for a contract of six months or more, and especially a year or more, it is not uncommon to obtain a significant discount on the price advertised per night or week on tourist platforms. Low-season months (roughly May to October for beach areas) lend themselves even more to discounts.

To secure the transaction, it is essential to verify the landlord’s identity and their title to the property (at least a copy of the deed or a certificate of no encumbrance to ensure they are indeed the official owner and have the right to rent). Using a local lawyer, independent from the seller or agency, is a good investment, even if just to review the lease and ensure it complies with Nicaraguan law.

Before signing, it is prudent to perform a detailed property inspection, with supporting photos or videos, noting all existing defects (water stains, cracks, faulty appliances, etc.). In case of a dispute over the deposit refund, this file can make all the difference.

Anticipating Disputes: How Conflicts Are Settled in Nicaragua

Even with a good contract, conflicts can arise: repairs not done, disputed bills, refusal to return a deposit, or landlords wanting to reclaim their property earlier than planned.

The recommended first step is direct communication with the landlord, possibly with the help of an interpreter if the language barrier complicates communication. Many disagreements are resolved at this stage, especially if both parties wish to avoid lengthy and costly judicial proceedings.

It must be kept in mind that the system being generally pro-landlord, tenants statistically have little chance of winning a major dispute, especially if they are not perfectly advised. Meticulous documentation of all payments, written exchanges, and repair interventions remains the best protection.

When to Rent Before Buying: Recommended Strategy for Settling In

For people considering buying a property in Nicaragua later, the common recommendation is to rent for at least six months in different neighborhoods or towns before any purchase. Micro-markets can be very different from one street to the next, the quality of water, electricity, internet, or road access varies enormously, as does the social dynamic (night parties, traffic, security).

In Summary: Renting in Nicaragua, Many Advantages, But Not Without Preparation

Renting a property long-term in Nicaragua can offer a remarkable quality of life for a modest budget, especially for a retiree or remote worker coming from North America or Europe. With rents often 50 to 80% cheaper than elsewhere, affordable food, accessible domestic services, and pleasant weather, the country has solid arguments.

By combining this legal caution with a good knowledge of local markets – whether the affordable apartments of Managua, the colonial houses of Granada, or the beachfront villas of San Juan del Sur – it becomes entirely possible to fully enjoy a long-term rental in Nicaragua, making the most of this country still largely underestimated on the expatriation map.