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[Solved] Portugal Lease Renewals

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(@jonesdn2020)
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Ana from Savvy Cat Realty mentioned in the webinar last night that the renewal period is for a three year period. I had seen an article on that from idealista. I looked at our lease and it states that the renewable terms are for one year.

I searched out for an answer and found this link. Here are a couple of highlights.

"With the approval of Law no. 13/2019, if the agreement does not establish different, the rental for housing is renewed for a minimum period of three years, except in the cases of leases for non-permanent housing or for special temporary purpose."

"That is, at the same time as Law No 13/2019 of 12 February establishes the minimum duration of one year for leases in general, with a few exceptions, the landlord can never oppose renewal of the contract before 3 years (in the case of housing leases) and 5 years (in cases of non-residential leases)."

My interpretation is our lease renews for 1 year periods and our landlord cannot oppose renewal for 3 years even though our lease states they can with 120 days notice of lease end or renewal.

Thoughts?

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(@old-bloke)
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Posted by: @jonesdn2020

My interpretation is our lease renews for 1 year periods and our landlord cannot oppose renewal for 3 years even though our lease states they can with 120 days notice of lease end or renewal.

That is my interpretation as well.

Lei 13/2019 amended Article 1097 (and other Articles) of the the Civil Code.
Whilst Article 1097.3 does indeed prevent the landlord opposing the renewal for 3 years there is an exemption in Article 1097.4, hence your lease still quoting the notice your landlord will give.

4 - Excetua-se do número anterior a necessidade de habitação pelo próprio ou pelos seus descendentes em 1.º grau, aplicando-se, com as devidas adaptações, o disposto no artigo 1102. e nos n.os 1, 5 e 9 do artigo 1103.

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(@jonesdn2020)
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@old-bloke Thank You! I did not catch that exemption and that is good to know. If they exercise that exemption, I wonder how they go about proving they actually moved into the property and did not rent it to someone else for a higher price? What would a tenant do to ensure they were not unduly being evicted under that exemption?

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(@dally)
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@jonesdn2020 I have some lease questions specific to your lease. I will send a DM request to connect if you are interested.  Thank You

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Posted by: @jonesdn2020

I wonder how they go about proving they actually moved into the property and did not rent it to someone else for a higher price? What would a tenant do to ensure they were not unduly being evicted under that exemption?

Article 1102 requires them to provide verification, and Article 1103 states they (or their offspring) must move in within 3 months and stay for at least 2 years. If Article 1103 isn't complied with within 6 months of the eviction the landlord has to pay the evicted tenant a sum equivalent to 10 years rent.

It can be very costly for a landlord to improperly evict a tenant. 

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(@itexpert7)
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What about the tenant, are they obligated to stay for ... 3 years?

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(@jonesdn2020)
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@itexpert7 The lease renewal terms dictate the renewal period. The lack of clarifying the renewal period makes it default to 3 years is what I understand.

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@itexpert7 You are not obliged to stay the full 3 years. I believe like the 1 year lease, that  after 1/3 off the agreed lease term you can give notice of wish to leave. Not sure how many months notice it needs to be though.

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(@jonesdn2020)
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@blaze451 Our lease states 120 days notice after completing 1/3 of the lease. We have to give 90 days notice to terminate the lease at lease end or it auto renews for 1 year. This is a conundrum. It is hard to get a new lease in excess of 90 days out so we would have to give notice and hope we find a new lease by the time ours ends.

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(@blaze451)
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@jonesdn2020 mine seems to be notice free -

"the present contract is concluded for a period of 12 months starting on April 1st and ending on March 31st with no need for any previous communication for its termination"

so good news 

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(@jonesdn2020)
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@blaze451 What does it say in regards to renewals?

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(@blaze451)
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@jonesdn2020 it doesn't make any specific mention of renewal, so I assume as per law It would automatically renew for 3 years unless I decide I'm moving, or the landlord makes claim to live there himself or his family.

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(@jonesdn2020)
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@blaze451 Was the lease prepared or reviewed by a lawyer?

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(@blaze451)
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@jonesdn2020 yep, I used EI and their lawyers checked it all before sending to me to sign.

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@blaze451 I have been in contact with them recently concerning our lease since they did our lease as well.  I would ask them about your lease.

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(@blaze451)
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@jonesdn2020 Given that they are working in my best interests I would be surprised if they asked for it to specify that I have to give 3 months notice for non-renewal. I will get them to confirm it though as its in Portuguese and French (Landlord is French). I was told an English copy was being made but I have not received it.

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@itexpert7 

Artigo 1096.º
Renovação automática
 
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