Panama Real Estate & Immigration Advisory Agency 

Making your Property Management decision

The optional Pensio Property Management program is available to you if you will be investing in your property for the purpose of earning rental income. Your Promise to Purchase Contract includes the Pensio Property Management at no additional cost to you other than property management fees. Pensio's Property Management includes rent guarantees underwritten by a performance bond issued by Rentalis Insurance Company, Inc., a US protected Cell Captive insurance company, 100-percent of all risks reinsured by reinsurers rated AM Best A or Better. Pensio suggests you read carefully:

• Pensio Property Management Agreement
• Purchaser Acknowledgement and Indemnitee
• Performance Bond issued to you when you take possession of your property.

Executing the Property Management Agreements

Bolt Agent will provide you with a "Promise to Purchase Contract"; this is your purchase agreement between you, the buyer, and the seller. The Promise to Purchase Contract includes an Optional Property Management Agreement, if you opt into this program, then you are required to execute the agreements and provide them with the Promise to Purchase Contract. You can cancel this agreement on notice to Pensio, prior to closing your purchase, or after the purchase. If there is a tenant in place, you will be required to assume the lease contract of the tenant. You should read the termination provisions in the Pensio Property Management Agreement.

What is Property Management with Rent Guarantee?

Under the Property Management agreement, Pensio will pay you guaranteed rental income on a quarterly basis starting 90 days after you take possession of your property for a period of 5 years, taking the worry out of whether your investment property will earn you income. Pensio will pay the rent guarantee regardless of whether the unit is vacant, rented or the tenant has defaulted. You should read the Property Management Agreement for more details.

What is a Performance Bond and who is the insurer?

The Property Management Agreement and Guaranteed Rent is secured by a Performance Bond issued by Rentalis Insurance Company, Inc. You can find a sample of this performance bond in the schedules of your "Promise to Purchase Contract". Pensio Realty S.A. Property Management Group in Panama is a Participating Member of Rentalis Insurance Company, Inc., a Protected Cell Captive insurance company located in the United States, one-hundred percent re-insured by global re-insurers rated AM Best A or Better.

What are the Property Management Fees I need to pay?

Pensio does not charge you a fee for the rent guarantee but does charge a property management fee that will be deducted from your rent guarantee payment. Normally property managers charge for new tenants and evictions. Pensio charges only one fee regardless of potential tenant issues.

What are all the fees I need to pay for my property when renting?

All of the fees you are required to pay are contained in your property management agreement, which is included with the "Promise to Purchase Contract". Depending on the property you purchase fees may vary. The fees payable are deducted from your guaranteed rent, so there is no worry for you having to put out more money than you have budgeted.

What are landlord and tenant laws in Panama?

In general, there are no restrictions or limitations in regard to the duration of a lease agreement. The parties can freely agree on the duration of the lease contract, as well as the extension period unless the rent payments are equal or lower than USD$150 per month. The tenant is not bound by the agreement as to the duration of a lease but can terminate the contract at any time, with a thirty calendar day notice to the landlord. This is why the Pensio 5-year rent guarantee program is the best approach to investing in rental property in Panama. In general, lease agreements can freely incorporate increases in the rent every certain amount of years, as agreed between the parties (in the lease contract). Nevertheless, rents equal to or lower than $USD150 per month can only be increased with prior written authorization of the Ministry of Housing. This would not apply to your investment rental property. A security deposit equal to one month's rent must be consigned by the tenant to the Ministry of Housing via the landlord. This will be returned to the tenant once the lease agreement has terminated, unless there is a claim on behalf of the owner for any amount owed by the tenant, for any damage caused by ty the tenant to the property. You do not have to worry about security deposits because that is an issue for Pensio. Pensio pays to repair any tenant damage during the term.