Rental agreements in Paraguay should precisely define the price, rent adjustments, responsibility for repairs, penalties and the conditions for returning the property. Signing the agreement—even with a notarized signature—does not make valid a clause that contradicts mandatory provisions of the Civil Code or imposes an excessive imbalance between the parties.
One of the main precautions concerns the handover of the property. A general statement that the property was received in “perfect condition” can make later complaints about pre-existing defects more difficult and create an unfavorable presumption against the tenant, according to the interpretation presented for Article 811. The best approach is to attach a detailed inventory to the agreement before signing, with dated photographs documenting the property’s condition and incorporated into the agreement or delivery record.
As a rule, the landlord must keep the property fit for the agreed use and pay for structural repairs, leaks in main pipes and serious electrical faults. The tenant is responsible for damage caused by the tenant or by people living with the tenant, as well as minor wear resulting from ordinary use.
The tenant may not unilaterally stop making all payments because the landlord failed to carry out a repair. The tenant must first notify the landlord formally. If there is a delay or omission, the interpretation presented for Article 822 allows the tenant to withhold the portion of the rent equivalent to the cost of the repair. When the landlord’s work prevents normal use of the property, Article 823 may support a proportional rent reduction or, in serious situations, termination of the agreement.
Rent may be adjusted during the term of the agreement only if a formula or deadline is clearly established, or if the parties reach a new written agreement. There is no general cap or automatic index applicable to all agreements. Disproportionate clauses may also be challenged: the interpretation presented for Article 691 protects against abusive conditions in standard-form contracts, and the tenant’s signature does not eliminate that protection.
Late payment has different effects. The debt may be collected from the first overdue monthly payment; with two monthly payments outstanding, the interpretation presented for Article 837 indicates that the landlord may seek termination of the agreement and begin the appropriate legal measures, subject to the applicable contractual and procedural conditions. The owner of a property rented for a fixed term must respect the agreed period, however, unless the tenant commits a serious breach.
Anyone planning to leave before the end of the agreement should check the agreed penalty. It is not automatically invalid, but the interpretation presented for Article 459 allows a judge to reduce a penalty that is manifestly excessive. At the end of the term, there is no automatic renewal for the same period. If the tenant remains and the landlord does not demand the property’s return, the tenancy continues month to month, under the same conditions, until a formal request for its return, according to the interpretation presented for Article 843.
The sale of the property also requires attention: according to the interpretation presented for Article 810, the buyer is required to honor the tenancy only if the agreement is registered in the Public Registry. Before signing, María José Ojeda Argüello, a lawyer and managing partner of Casanova & Asoc., recommends checking the condition of the property, the adjustment formula, how repairs are divided, the deadline for returning the security deposit, natural wear and the termination rules. This practical guidance should be distinguished from independent confirmation of the law; parties should obtain professional advice for disputes or contract decisions.