Modification of the Law on Urban Leases

Date: 8 de December de 2022

An important amendment to the L.A.U. enters into force today, the main innovation of which is the reduction of the minimum mandatory period for the owner of the contract, which is currently five years, to three years. In addition, the lessee is allowed to terminate the contract from the sixth month of the lease. The last relevant feature is the freedom of agreements between the parties to establish the mechanism for revising the income each year, which was even mandatory, in the first five years, to adjust to the variations of the I.P.C.. The change is intended legislative flexibility and dynamism of a market, the housing rental market, which represents only 17 percent of the state's housing stock. It will be necessary to see if this improvement in the conditions for the owners, who are looking for the incorporation of new rental units on the market, does not penalize the potential tenants by seeing the terms for which they are guaranteed to stay in the rented property reduced.

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