Rents to rise in the coming months

PORTUGAL’S NEW Lei do Arrendamento Urbano, the urban rent law, has come into force.

Landlords can now begin to bring rent payments into line with market forces. However, the first rent increases will only begin to be felt a few months from now, as the new law will only apply to contracts drawn up before November 15, 1990.

Even in this case, landlords will not be able to put up rents immediately.

They must apply to the Comissões Arbitrais Municipais, municipal arbitrary commission or the Finanças, tax office for a Vistoria a Conservação do Prédio, inspection survey.

After this survey is carried out an Avaliação Fiscal, financial evaluation will be made of the property.

Only then can a letter be sent advising the tenant of the new rental value per month. The tenant then has 40 days to state and prove that he or she has an annual gross income less than five minimum salaries, or is 65 or over, or has a disability /incapacity above 60 per cent.

This new law will also affect expatriates living in Portugal who have Portuguese passports or a residents permit at the time the property was initially rented.