The Full Cost

So, you have found a decent option at a suitable price: 35,000 Uruguayan pesos — approximately US$870 — for an apartment with two bedrooms, two bathrooms and a balcony.

That would mean annual rent of 420,000 pesos (US$10,430).

Is that all? Not quite. Let us do the necessary calculations.

Signing a property lease in Uruguay involves the following main costs:

Rent

This is the main amount you pay each month. Rent in Uruguay is usually quoted in US dollars, though peso listings also exist. In our example, the 35,000 pesos is the rent itself.

Rental guarantee (a deposit with Uruguay’s Mortgage Bank, BHU).

When signing a lease, you often need to pay a security deposit, usually equivalent to five months of rent. It is returned at the end of the lease if payments have not been late and the property remains in good condition. This means adding 175,000 pesos in tied-up funds. Had you put that sum on deposit with BROU, you would have earned 16,625 pesos at 9.5% per year.

Another guarantee method popular with landlords is comprehensive insurance.

In this case, landlords require tenants to take out insurance covering the landlord’s risks from losses, property damage and late payment. Depending on the insurer, you would pay around another 30,000 pesos as an insurance premium.

The rental cost, including the agency commission, insurance or deposit, would be:

39,943 pesos (14% higher with a deposit).

41,058 pesos (17% higher with insurance).

What conclusions should you draw?

Sign a long-term lease with an option to extend.

Include additional costs in your budget

Try to agree on a deposit instead of insurance

Consult USE for a crystal-clear understanding of how property rentals work in Uruguay.