New Urban Lease Regime: The rights and duties of landlords
If you are thinking about renting your old family home or an inherited property, it is important to know beforehand the New Urban Lease Regime (NRAU), described in Law nº 31/2012, which regulates your rights and duties as a landlord.
Are you or are you thinking of becoming a landlord? If you are thinking of renting your family home to buy a new home or have an inherited property that you want to make available on the rental market, it is important to know your rights and duties as a landlord. According to Alexandre Luís, real estate consultant, these matters are regulated by the New Urban Lease Regime (NRAU), described in Law nº 31/2012. Summarized on the Imovirtual portal so that you can learn about them and make the most suitable decision for you.
Rights Income The landlord is entitled to the monthly payment of the rent, stipulated in the lease. As read in the New Urban Lease Regime, this determines that the value can be updated annually by: a) Income can be updated annually, according to the current updating coefficients; b) The first update may be required one year after the start of the contract and the following, successively, one year after the previous update; c) The landlord communicates, in writing and at least 30 days in advance, the update coefficient and the resulting new income; d) Failure to update will affect the recovery of unmade increases, although the coefficients may be applied in later years, provided that no more than three years have passed since the date on which their application would have been initially possible. Security deposit Note that the landlord must receive the property in the state that delivered it. Thus, the law provides for the possibility for both parties to determine a guarantee so that everything runs according to compliance, explains Alexandre Luís. According to the New Urban Lease Regime, "The parties can guarantee, in any of the legally provided ways, the fulfillment of the respective obligations", it should be underlined. Own housing Owners of leased property can reclaim the house claiming the landlord's right of complaint for housing. Still, according to the law, this act "depends on the payment of the amount equivalent to one year's income" and the verification of the following requirements: a) Be the landlord owner, joint owner or usufructuary of the building for more than two years or, regardless of this period, if it has acquired it in succession; b) The landlord has not, for more than a year, in the area of Lisbon or Porto and their adjoining councils or in the respective municipality for the rest of the country, a house that meets the needs of own housing or of their descendants in 1 .th degree.
Termination period Although the lease law benefits tenants more than landlords, as it facilitates the termination of contracts, there is a legal deadline and procedures to be followed to do so, notes the real estate consultation. In this sense, lessees must terminate the lease by communicating the property's owners and complying with the deadlines set out in the law: a) 120 days from the intended term of the contract, if the term is equal to or greater than one year; b) 60 days from the intended term of the contract, if the term is less than one year. Duties Construction According to the New Urban Lease Regime, the landlord is responsible for carrying out all conservation works, whether ordinary or extraordinary, "required by current laws or by the end of the contract, unless otherwise stipulated", says Alexandre Luís. receipts Being required to pay the amount of rent, tenants must benefit from proof of such transaction, which must be delivered by the landlord. Right of first refusal By law, landlords are required to grant lessees preference in two specific situations: a) In the purchase and sale or donation in fulfillment of the leased premises for more than three years; b) Upon entering into a new lease agreement, in the event of the expiry of the agreement, as the right has ceased or the legal administrative powers based on which the agreement was entered into have expired. Common Expenses Unless agreed in advance in writing, the lessee is responsible for paying the charges or expenses "concerning the provision of goods or services relating to the leased location", says the law. But the case changes, when it comes to expenses related to "administration, conservation and enjoyment of common parts of the building, as well as payment for services of common interest", emphasizes Alexandre Luís, in accordance with Law No. 31/ 2012. These concern landlords, maintains the real estate consultant. Improvements Last but not least, at the end of the lease, the law stipulates that the landlord must compensate the tenants for any improvement works: "the tenant is entitled, at the end of the contract, to compensation for the works lawfully done, in the terms applicable to improvements made by a possessor in good faith."
fonte: noticias ao minuto