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The New Urban Lease Regulation goes into effect today. Find out what’s going to change.

15 June 2017

The transitional period for updating rental contracts drawn up before 1990 will continue until 2020. After the eight-year transitional period, “in the absence of agreement by the parties on the type or duration of the contract, the contract shall be deemed to have a period of five years.”

Starting today, it is possible to extend the transitional period to renegotiate rents to eight years, three more than the initial five years granted, according to a decree published on Wednesday in the Diário da República.

Thus, the transitional period for updating pre-1990 rental contracts will continue until the year 2020, and will apply to all renters with a Fixed Gross Annual Income (RABC) of less than five Annual National Minimum Salaries (NRM), corresponding to 38,990 euros, regardless of age, writes Lusa.

The NRAU came into effect in November 2012. These regulations stated that rents prior to 1990 had to be renegotiated: This allowed old rental contracts to increase in price through a process of negotiations between landlords and tenants. This means that now landlord’s can only change rental contracts after a period of eight years.

After the eight-year transitional period, “in the absence of agreement by the parties on the type or duration of the contract, the contract shall be deemed to have a period of five years,” stated the agency.

You can consult the NRAU Legislation here.

In addition to the amendments to the New Urban Lease Regulation (NRAU), changes to the Legal Framework of Leased Property Works (RJOPA) and changes to the Civil Code related to leasing will take effect today.

Original Story: O Jornal Econômico

Translation: Richard Turner