Ecuador advances tenancy law reform to curb deposit abuses and protect owners and renters

Ecuador's National Assembly is debating a reform of the tenancy law that would modify how security deposits are handled. The proposal seeks to tie deposit amounts to the actual cost of potential repairs, introduce a fast‑track summary procedure for disputes, and set clearer criteria for damage verification and timely refund.

The reform aims to balance tenant protection against abusive withholding of deposits with safeguards for owners against damage, addressing concerns that the current system disadvantages young families and low‑income renters. The bill must pass a second legislative debate and survive a possible presidential veto before becoming law.