When moving to Portugal many people want to rent before they take the
next step and buy a property. For many reasons, but especially to make sure
that the area is nice and if that is actually the place where they really want
to settle. However, what seems like a fantastic option can easily become a
nightmare from the first day you start looking at properties online.
Deposits
Although not compulsory, it is very common to see landlords asking for
deposits and there is nothing wrong with this from a legal point of view.
Landlords have the right to ask for a deposit.
The deposit works as a guarantee. The landlord can require the tenant to
pay a deposit in order to prevent any damage the tenant may cause to the
property during the period of time the tenant is living there.
According to Inês Pacheco, legal advisor at DECO: "the existence of
a deposit and its amount should always be included in one of the contractual
clauses. The law does not establish any limit, and it is up to the landlord and
tenant to agree on the amount of the deposit. Normally, the amount is set
taking into account the rent, corresponding to one or two months rent”.
If the property has been well looked after and the tenants have not
caused any damage to the house, when the contract ends it is time for the
landlord to give the money back to the tenant. However, there are situations
that do not end like this.
Avoiding scams
The Portugal News has received reports from people revealing situations
where the landlord says (after the tenants have left the house) that the
property requires extra cleaning, repairs, etc., and for this reason the deposit
will not be returned to the tenant's pocket. At first, this situation seems
normal, but the problem comes when the tenant believes this to be false.
According to Inês from DECO: "At the end of the rental contract, if
there is no need to carry out any repairs, the landlord cannot keep the amount
of the deposit".
To avoid this type of problem, Inês recommends that tenants "do the
inspection together with the landlord when leaving the property and evaluate
together the state of the property. During the visit, the tenant can also take
pictures of the property to prove that it is in good conditions. If this
doesn't work, tenants can take the landlord to court to get their money
back."
Rents upfront
It is important to note that a deposit and the advance payment of rent
are not the same thing. “The advance payment of rents means that the tenant, at
the commencement of the lease, will pay more than one rent to the landlord.
Once again, if such a regime is agreed between the landlord and tenant it must
be included in the lease agreement”, she said.
Contrary to what happens in terms of the deposit, the advance rent
payment has a maximum limit of three rents.
"In practice, when advance payment of the rent is made, the tenant
will not need to pay the last rents set in the contract”, Inês added.
Rent increases
Another problem that many tenants complain about is the constant
increase in rents. However, this is not legal unless it is done under the
following terms.
The rent increase can only happen if it is written in a clause of the
lease. Otherwise, it must follow the "coeficiente de atualização de
rendas" for each year.
In this sense, the update can only be done after one year of the
beginning of the contract, by registered mail with acknowledgement of receipt
or delivered by hand with the tenant's signature. This letter must mention the
increase and from when it is due.
It is always important to remember that these increases can only take
place after the 12 complete months of the lease and can never be superior to
the referred "coeficiente de atualização de rendas" (unless written
in the contract).
Paula Martins is a fully qualified journalist, who finds writing a means of self-expression. She studied Journalism and Communication at University of Coimbra and recently Law in the Algarve. Press card: 8252
All of this legal / contract stuff is ONLY applicable IF the landlord has registered the rental property with Financas. There is a good reason they do NOT. The tax on the rent income is way too much. So the landlords do what they wish because nothing is legal. On the other hand, IF the rental is not legal and the tenant defaults then the landlord has big problems removing the tenant. The rental issues in PT are quite bad and it is a matter of supply & demand. Few rental properties because there is little incentive to buy to let OR build to let because of the high tax.
By L from Other on 13 Jan 2023, 16:42
As somone who has had 5 successful rental contracts in Portugal...The first thing I would do is hire an attorney...Next someone to inspect the property for safety issues...Then sit with the owners and tell them...I will pay first, last and deposit...You will fix everything in the unit up to standards you are not used to...Very Basic...Next you will fix things in the unit you neglected, because you can't afford the property and or greedy or both...Lastly you will return my deposit at the end of lease...Any Questions? If the owners do not agree then walk...Welcome to Portugal! Boa Sorte!
By Sakamoto Suarez from Lisbon on 15 Jan 2023, 14:30