Eviction process becomes simpler
The review of the rental regime proposed by the Government introduces changes to the eviction process, with the aim of reducing the length and complexity of proceedings.
One of the main changes concerns delays in rent payments. Currently, landlords can proceed with an eviction when rent has been unpaid for three months. The proposal reduces this period to two months.
The rules on delays of more than eight days are also changing. Eviction proceedings may be triggered when this situation occurs more than three times, consecutively or intermittently, within 12 months, or more than four times within 18 months.
The review of the rental regime also provides for fewer formalities in notifications and the consolidation of different stages of the process into a single procedure.
Changes aim to provide greater security
The changes to rental rules aim to speed up the recovery of properties in cases of non-compliance. Currently, the process may involve different stages, extending the time until the property is actually vacated.
Under the proposed simplification, court proceedings and enforcement of the decision will be integrated into a single process. The measure aims to reduce bureaucracy and provide landlords with greater predictability.
The Lisbon Landlords' Association nevertheless considers that the changes may not be enough to restore confidence in the rental market. The organisation argues that other obstacles remain, making it difficult to place properties on the market.
Renovation works have new conditions
The proposal also changes the rules applicable when a landlord wishes to terminate a rental contract in order to carry out major renovation works requiring the tenant to leave the property. In these cases, the tenant will be entitled to compensation equivalent to two years' rent or, alternatively, rehousing under similar conditions. For contracts signed before 1990, the proposed compensation rises to ten years' rent.
The change aims to simplify the use of this mechanism, although it may continue to represent a significant cost for landlords seeking to renovate properties.
Older contracts will also change
The new rental rules also cover contracts signed before 1990, establishing different conditions for their transition to the New Urban Lease Regime. For tenants over 65 with annual incomes below €64,400, the rent set out in the old contract will remain in place. When income exceeds this amount, the rent may be increased up to a certain limit linked to the property's taxable value. In other cases, contracts will move to a fixed-term regime lasting five years. When the tenant's income is below €64,400, the previous rent may remain in place.
The proposed changes therefore seek to balance tenant protection with the need to create greater predictability in the rental market, amid pressure on housing supply.