Source: Freepik Author: Redaction The deadline for the annual reporting of rents from rented urban buildings to the tax authorities , for landlords with long-term contracts, is now underway, so that they can benefit from a discount on their personal income tax (IRS). The tax reduction may be greater or lesser depending on the term of the contract, however, in order to benefit from this relief, landlords must report it to the Tax Authority (AT) by February 15th. Between January 1 and February 15 there is a deadline for the annual reporting of rents for rented urban buildings, the tax office said on its social networks. In order to file this report, landlords must present the rental contract, which can be either a contract for residential purposes signed before 1990, or a contract for non-housing purposes, before 1995. According to the tax authorities, for these situations, the taxable value is calculated by multiplying the annual value of the rents by 15. If this value is lower than the taxable value resulting from the valuation of the property, the IMI rate will be levied on this value . Owners of this type of contract can submit this report on the Finance Portal until February 15. Related topics: Model 44 declaration: landlords must submit document this month
Source: Freepik Author: Redaction To ensure stability in rental contracts , it is essential to find good tenants in order to avoid late payment of rent and bills, ensure that the property is not left empty for long periods of time or successive times, and the costs of repairing damage caused by inappropriate behavior. However, what qualities should you take into account when looking for a new tenant? SUPERCASA News gives you the best tips for finding the ideal person for your property portfolio. What makes a good tenant? To find a good tenant there are several factors you should take into account before making a decision, such as: Ease of providing information Look for people who are willing to easily provide information about themselves, such as their career and housing history . This is because if you question your future tenant and encounter some resistance, there is a chance that they are omitting some pertinent information about their conduct in other housing. History Its important to understand what your tenants past housing experiences have been like, so you can see whether or not they will fulfill their obligations, such as: Paying rent and bills on time; Asking permission before making changes to the property; Reporting visits and/or stays by friends, partners or family members; Giving prior notice when you want to end the lease. In addition to the legal obligations, you should also find out whether your future tenant h as had good experiences in the past, particularly in social terms , so that you can better understand whether they will be a good neighbor and take care of the property properly. Another very important factor to take into consideration is their credit history , as this is an indication of their ability to make payments on time, as well as their financial responsibility. How do I find a good tenant? 1. Complete applications As I said earlier, a good tenant will always be one who cooperates with the rental process and provides all the necessary information . Look for the most complete applications, not only in terms of information, but also with documents to back up all the data. Complete applications show the tenants interest and good will. 2. Behavior Try to get in touch with the applicants previous landlords to confirm that all the tenants obligations have been met and whether there have been any conflicts with them . If you cant get in touch with the landlord, you can always contact the neighborhood, as they have lived closely with the applicant and will have a clearer opinion of the applicants behavior. 3. Finances Analyze the applicants professional status and income to ensure that all bills will be paid and that the income is compatible with the rent. In this regard, it is important to bear in mind that many tenants combine their income with that of their partners in order to be able to afford the rent, so you should try to analyze this issue carefully before making a decision. What not to do In order to conduct yourself properly when looking for tenants, in addition to following the tips above, it is also important to know what not to do. In Portugal it is forbidden to discriminate against tenants on the basis of a number of criteria, such as: Sex, gender or sexual orientation; Ancestry or ethnic origin; Language Territory of origin or nationality; Religion or belief Political or ideological convictions; Age; Disabilities. As such, be careful when asking your tenants for their details, and only ask for information directly related to the rental. Want to know more about Renting a Home? SUPERCASA News recommends Affordable rents: Lisbon makes partnerships with private companies more flexible and Modelo 44 declaration: landlords have to hand in the document this month
Source: Freepik Author: Redaction This Tuesday, January 17 , the Lisbon City Councils housing councillor defended a new Public-Private Partnership model for affordable housing , to build 550 homes , with a rent 20% lower than the market. Filipa Roseta said that instead of being a concession format that is governed by the Public Contracts Code , it is a simple sale of surface rights for 90 years, with the onus on the property to have an affordable rent. The proposal will be discussed on Wednesday at the executive meeting. The councillors proposal, to be implemented in the parishes of Benfica and Parque das Nações , points to a rent 20% lower than the market , arguments that do not convince the opposition, who have suggested changes to ensure that the maximum rent limits are those determined by the Lisbon City Councils Affordable Rent Program . Thus, the opposition defends the importance of the municipal response being aligned with the rent limits set out in the Municipal Regulation on the Right to Housing , i.e: - T0 - between 150 and 400 euros; - T1 - between 150 and 500 euros; - T2 - between 150 and 600 euros; - T3 - between 200 and 800 euros; Currently, the 17-membe r Lisbon City Council executive includes seven elected members of the Novos Tempos coalition (PSD/CDS-PP/MPT/PPM/Aliança) - who are the only ones allocated portfolios - three from the PS , two from the PCP , three from Cidadãos Por Lisboa (elected by the PS/Livre coalition), one from Livre and one from BE . Follow these and other topics in SUPERCASA News .
Source: Freepik Author: Redaction The deadline for submitting the Model 44 Declaration to the tax authorities for IRS purposes is the end of this month. All landlords with rented properties that do not require an electronic rent receipt are obliged to submit it. It is the Tax Authority (AT) itself that reminds landlords of the payment deadline, having launched a campaign on its social networks entitled Declaration 44 - Who must submit it?, reminding them that the communication identifying the rents received must be made during the month of January on the Finance Portal. What is Model Declaration 44? This is a document that reports the annual communication of rents received, and is intended for the declaration of sums received from tenants for the payment of rents relating to leasing, assignment of use of the building or part of it, which is not considered a lease, subletting or the rental of machinery and real estate installed in the leased property. This declaration must therefore be submitted by taxpayers with category F income, i.e. landlords, who have been granted exemption from issuing the rent receipt electronically, or who have not opted for this method. If you are a landlord and issue your receipts electronically, you do not need to submit this declaration. Are you clear? Read also: What are Liberatory Taxes? Learn more
Source: Freepik Author: Redaction The Tax Authority confirms that it has already paid out the extraordinary income support (PAER), the average value of which is around 113 euros. The measure has reached 258,661 people, totalling 236,862 families, which represents an increase of more than 50,000 families on top of the 185,000 that began benefiting from the support in the middle of last year. As a result, the number of beneficiaries of rent support has increased by 27 per cent compared to what was expected, but there are no plans to increase the budget. Reprocessing and payment have already been made to all beneficiaries considered eligible for support during 2023, according to the data sent by the ISS [Social Security Institute] and the AT [Tax Authority], confirmed the official source from the Ministry of Housing. According to what is known, the 50,000 or so families who were, until now, excluded from the extraordinary rent support because they had effort rates above 100 per cent with rent-related costs, are now considered eligible to receive the support to which they are entitled. Related: Extraordinary rent support: Social Security denies delay
Source: Freepik Author: Redaction As stipulated in the State Budget for 2024 (OE2024), the extraordinary support for rents , stipulated following the 4.9% rise in the coefficient used to calculate them, will be paid in February. This clarification was put forward by Social Security, which denies any delays in payment, explaining that it happens by reference to the previous month. Therefore, the January amounts will only be paid in February. In a statement, Social Security explained: There is no delay in the payment of rent support and the respective update for 2024. The payment of rent support is made by reference to the previous month, which means that, in January 2024, the amount for December 2023 is paid (...), the update for 2024 will be made in February for the month of January 2024 and so on . This support is a monthly subsidy intended to protect the most economically disadvantaged tenants, with rents updated under the New Urban Lease Regime , created by Decree-Law no. 20-B/2023, of March 22. Extraordinary rent support is granted to families with rental or sublease contracts for their first home that have been signed by March 15, 2023 , with annual incomes equal to or less than the maximum limit of the 6th IRS bracket, and who have an effort rate to pay the rent equal to or greater than 35%. On this subject, read also: Support for landlords with old rents: how does it work?
Source: Freepik Author: Redaction From July next year, landlords with rents prior to 1990 will be able to apply for compensation from the Institute for Housing and Urban Rehabilitation (IHRU), as announced by the Ministry of Housing. If you have any doubts about how it will work, where you can apply or what kind of documents you need to submit , SUPERCASA News will answer your questions and explain everything about this measure, which aims to support and provide stability for tenants aged 65 and over. As published in the Diário da República this Wednesday, December 27, the support is limited to 1/15 of the Tax Asset Value (VPT) of the rented property, divided into 12 months, and covers residential rental contracts signed before November 18, 1990. Who can benefit from this support? All landlords with rental contracts prior to the stipulated date, which is November 18, 1990 , can benefit from this support. It is estimated that there are already around 124,083 private landlords with eligible rental contracts. And the measure, as announced by the Ministry of Housing, has a total cost of 26.6 million euros per year. Where can I claim this compensation? Since the measure only comes into force on July 1, 2024 , the landlord, meeting the eligibility conditions mentioned above, must submit an application for the compensation to the IHRU, to which he must send all the relevant information so that the final decision on the application can be considered. You will need to submit the following documents: Proof of the date on which the lease contract was signed, by registering the contract , which you must submit to the Tax and Customs Authority; The framework of the rental contract, which must correspond to one of the situations set out in articles 35 and 36 of the NRAU, by providing proof of the request for exemption from Municipal Property Tax (IMI) in accordance with the situations described in these articles; Proof of the monthly rent, through a rent receipt, model 44 or invoice issued by the landlord to the tenant; The Tax Asset Value (VPT) of the rented property, by means of a copy of the urban land registry proving the VPT on the date the decree-law came into force. How is the support awarded? After submitting your request, with all the necessary documents and information, the IHRU has 30 days to decide whether or not to award the compensation to the landlord. The request for compensation to be awarded takes effect from the date the request is submitted to the IHRU. If a request for exemption from IMI is subsequently rejected, the landlord must inform the IRHU within 30 days in order to receive a refund of the compensation received. How is the support paid and how long does it last? If the application is accepted by the IHRU, the compensation is paid to landlords for a period of one year, which can be renewed for equal and successive periods , provided that the landlord can prove, before the end of this period, that the requirements initially considered for the award of the compensation have been maintained . This proof must be provided again to the IHRU. If there is an annual update of the rent, the amount of support will change, and the landlord is responsible for informing the IHRU, within 30 days of the update, that there have been changes in the rent to the tenant. This may result in a change in the amount of compensation , by recalculating the support, which will be communicated to the landlord for subsequent payment, with retroactive effect to the time of the update. The amount of compensation awarded is exempt from personal income tax and social security contributions. The support ends when the rental contract comes to an end and the rent is no longer subject to compensation , or if the right to compensation lapses due to the death of the landlord without a successor entitled to maintain the support. If the property is transferred to another person , in the event of the landlords death, the right to compensation is maintained, subject to the new landlords request to maintain this support , no later than 60 days after the original landlords death. In what other situations can the support end? This rent compensation may be terminated if the landlord fails to comply with his obligations regarding access to and maintenance of the compensation, specifically by failing to provide legally valid evidence requested by the IHRU within the time limits established for this purpose. Read other related topics in SUPERCASA News
Source: Freepik Author: Redaction If youre thinking of renting a house, you should know that its very likely that youll be asked to pay a deposit. In this article, SUPERCASA Notícias will clear up all your doubts about the rental deposit. What is the security deposit for? According to Article 1076 of the Civil Code, a security deposit is a guarantee required when a contract is made between parties, in order to ensure compliance with contractual requirements . In the real estate context, the security deposit usually corresponds to a monetary sum that the tenant pays to the landlord at the time the rental contract is signed. The amount of the deposit varies according to the terms of the contract, but it is common for it to correspond to one or two months rent. At the end of the contract , this amount is returned to the entity that paid it , once all the requirements have been met. The security deposit is a form of guarantee that ensures the tenants responsibility towards the landlords property , protecting them in the event of late payment, refusal to leave the property, damage, reckless use, unauthorised works or other situations. How does it work? The amount of the deposit is set by negotiation between the two parties , and the conditions to be met in order to receive this amount in full will be established in the rental agreement. If the tenant does not default during the rental period, the landlord is obliged to return the amount in full and a receipt must be issued. If the tenant defaults , the landlord reserves the right to keep part or all of the security deposit to cover the damage caused. If the damage is greater than the value of the deposit, in addition to the landlord keeping the entire deposit, he can also require the tenant to pay the remaining costs of repairing the damage. What kind of guarantees can be used in addition to the security deposit? There are other alternatives to the security deposit that can be required in a rental agreement, such as: - Guarantor: a person appointed by the tenant who is responsible for guaranteeing the fulfilment of the tenants obligations; - Surety Bond: a financial product that acts as a guarantee, provided by an insurance company, which guarantees the fulfilment of contractual obligations; - Advance rents: the landlord can request one or more advance rents, to be paid when the lease is signed. The request for a deposit and advance rents can exist simultaneously, with the amount of the deposit being imposed by the landlord (usually equivalent to one or two months rent), and the request for up to three advance rents. After the end of the contract, the landlord has a period of 20 days to return the deposit , under penalty of paying damages. In turn, the advance rents will be deducted from the final months of the contract. In the event of any default, the landlord may also withhold this amount until the outstanding amount is totalled. Rights and obligations In order for a rental contract to be correctly concluded, both the landlord and the tenant have rights and duties that they undertake to fulfil. The landlord is therefore responsible for: - Issue monthly receipts for the rents, as well as the security deposit and advance payments; - Carry out maintenance work; - Bear condominium costs; - Relocate the tenant in the event of works carried out during the rental period; - Communicate any rent increases by letter with acknowledgement of receipt. Rights: - Receive rent payments on time; - Demand payment of a security deposit; - Receive the property in the condition in which you handed it over; - Retain the security deposit in the event of damage caused by the tenant; - Examine the property when there are reasons to do so; - If the contract is of indefinite duration, the landlord can terminate it at any time if he needs the property for his own home. A contract between two parties presupposes the fulfilment of all rights and duties , in order to ensure that there is no damage and that a healthy relationship is maintained between landlord and tenant . The security deposit ensures that the landlords property remains intact, safeguarding any damage that may occur. Also find out What is Usucaption? SUPERCASA explains , Subletting rules: know them all and Wooden buildings: trend for 2024?
Source: Freepik Author: Redaction With the entry into force of the Mais Habitação (More Housing) Programme, the compensation mechanism to be awarded to landlords with rents prior to 1990 was decided . According to information released by the Ministry of Housing, the request for compensation can be submitted to the Institute for Housing and Urban Rehabilitation (IHRU) from July next year, following the promulgation of the law this Thursday by the President of the Republic, Marcelo Rebelo de Sousa. There are still unanswered questions about this measure, such as whether the amount of compensation will be retroactive, or exactly what documentation will be required of landlords. However, it is known that the amount of compensation will be capped at 1/15th of the propertys Tax Asset Value (VPT), and 124,000 contracts will be involved, with an average monthly subsidy of around 17.85 euros. According to the Ministry of Housing, this compensation corresponds to the difference between the value of the monthly rent charged and this limit, and no personal income tax or social security contributions will be levied on it, adding that this law represents the culmination of the governments work aimed at finding a structural solution that guarantees a fair and balanced resolution for tenants and landlords . The measure will cost 26.6 million euros a year , according to the study carried out at the governments request, which outlined three different scenarios for awarding this compensation to landlords, with this being the solution with the least budgetary impact. The aim, according to the executive, is to give stability and predictability to these rental relationships, allowing rents to be updated under the same conditions as other contracts , guaranteeing the security of tenants by not transitioning to the New Urban Lease Regime in these contracts, in particular by continuing to protect tenants aged 65 or over, with proven disabilities or in a situation of economic need , as well as compensating landlords, through the IMI and IRS Exemption for these contracts, already provided for in the State Budget for 2024. Read more: Increase in old rents for 2024 in line with inflation or Landlords have doubts about updating old rents
Source: Freepik Author: Redaction According to the latest report by Knight Frank , a real estate company that has been a partner of Portugals Quintela + Penalva since 2021, rents in the luxury housing market worldwide increased by 7.9% in the 12 months to September 2023. However, tenants financial capacity is reaching its limit . This is one of the main conclusions of The Knight Frank Prime Global Rental Index , now released to SUPERCASA Notícias . Although this increase is slightly higher than the 7.5% seen in the second quarter of this year, the latest data confirms that rents in the residential segment are rising at a rate three and a half times higher than the long-term trend seen in the pre-pandemic period , recorded in the 3rd quarter of 2019, and 25.5% above the pandemic low in the 1st quarter of 2021. Among the cities analyzed, both Singapore and New York recorded a quarterly drop in rents, although neither recorded an annual decrease. For its part, Sydney claims the top spot for luxury rental price increases over the last 12 months, and Singapores annual growth remains strong, but with prices falling by 1.7% in the last quarter. Despite the ongoing debates around teleworking and the challenges in the office sector in major cities, the data confirms the demand for city living and the resilience of workers accommodation needs in close proximity to offices. In most of the cities analyzed by the Prime Global Rental Index, it was found that there is strong growth in accommodation needs . This, together with a relatively low supply of new residential stock, suggests that upward pressure on rents will continue. However, there are already limits to this process in terms of affordability. There comes a point where, even in markets with very strong demand and weak supply dynamics, tenants are unable to continue offering substantially higher rents. Three markets stand out in terms of rent growth since 2021. London has seen rents rise by 55.2%, New York by 53.4% and Singapore by 50.3%. Both New York and Singapore are experiencing a slowdown in rental growth and have shown signs of falling over the last three months. London continues to record double-digit growth, supported in part by strong wage growth; Sydney claims first place for luxury rental increases over the last 12 months; Singapores annual growth remains strong, but prices fell by 1.7% in the last quarter and New Yorks luxury rental market is cooling, recording annual growth of 2.4%, the lowest for two years. Portugal grows by double digits In Portugal, the trend of rising rents has been constant, with Lisbon (21.4%), Cascais (20.2%) and the city of Porto (25.6%) experiencing double-digit growth over the last year in apartment rents. In the case of houses , the average increase in rents is slightly lower, but just as sharp. In Lisbon, the increase is 10.4%, in Cascais 17.7% and in Porto 8.3%. Read also: State coffers have already disbursed 138M€ for housing support
Source: Freepik Author: Redaction Subletting is a method that allows tenants to rent out their property or part of a property to third parties . Although it is a legal procedure, there are some rules you must respect if you are thinking of doing this, which SUPERCASA Notícias will explain to you throughout the article. Please note that in order to sublet a property you must have the property owners authorisation , and once authorised, you must draw up and sign a contract and declare this income in the IRS. What do you need to know to sublet? According to the law, subletting is only possible if there is written authorisation , i.e. you must inform the owner in writing of your intention to sublet the property and ask for their authorisation. It may also be the case that the landlord is aware of the subletting situation and does not comment on it , but it is always preferable to have his written authorisation. If the landlord does not give his consent, the subletting contract is not valid. What happens to the subletting contract if the lease ends? If the tenancy agreement ends, so will the subletting agreement, because in the subletting agreement the same rules established in the initial agreement apply . It is important to keep all the documents relating to this process so that you can safeguard your rights vis-à-vis the subtenant, particularly with regard to the payment of rent. Rent amount There is a legal limit to the amount of rent that can be charged, whether you are subletting the whole house or just part of it. According to article 1062 of the Civil Code, the tenant may not charge the subtenant rent or rent in excess of or proportionally in excess of what is due under the lease, increased by 20 per cent, unless otherwise agreed with the landlord . This implies a ceiling of 20 per cent on the amount of rent you pay . This amount can only be exceeded if the landlord authorises it. Example: - For a rent of €500 you can only charge the sub-tenant a maximum of €600 (500 + 20% = 600); - For a rent of 1000€, the maximum amount charged will be 1200€ (1000 + 20% = 1200). How does it work in tax terms? If you sublet a property, you have to declare the resulting income in the IRS, i.e. the amount that corresponds to the difference between the rent you received from the subtenant and the rent you pay to the landlord . In order to fill in the IRS declaration correctly, you should fill in box 5 in Annex F relating to property income. In this box you must enter - Amount of rent received; - Amount of rent paid to the landlord; - TIN of the sub-tenant; - TIN of the landlord. According to the Tax Authority, it is also compulsory to issue an electronic rent receipt for the difference earned by the sub-tenant between the rent received from the sub-tenant and that paid to the landlord . Landlords rights If the sub-lease is applied to the entire property, the landlord can replace the tenant, i.e. the sub-tenant becomes a direct tenant. However, this right can only be exercised by the landlord by means of a court notice to the tenant and sub-tenant. When this notice is given, the sub-letting agreement ceases to have effect and the sub-tenant becomes a direct tenant , who must be informed that the rent must be paid directly to the landlord. Other topics that may interest you What is property leasing? , Compulsory insurance for landlords and tenants: find out
Source: Freepik Author: Redaction 1,610 new homes are to be built in Porto , an increase in the housing stock of around 12.5% , as announced by the municipality. Currently, the housing stock has 13,062 dwellings, a figure that will rise once the eight projects currently underway have been completed. Of these eight, two will be developed in partnership with private entities. The aim is not only to increase the number of homes on a rent-supported basis , but also to increase the number of homes available on the market at affordable prices . In the same context, Porto City Council will be launching a new edition of the rent support program - Porto Solidário. The 13,062 homes will be located in Lordelo do Ouro, Monte Pedral, Monte da Bela, Ilha da Lomba, Eirinhas, Bairro do Leal and Farias Guimarães, distributed for affordable rent and supported housing. In addition to these, 433 vacant dwellings are also highlighted for rehabilitation, promoted by municipal companies, which the municipality points out are not plans, but ongoing projects . Follow up: IHRU aims to rehabilitate 4,000 homes next year , Teachers relocated to Lisbon and the Algarve will receive support or State coffers have already disbursed 138M€ for housing support