The Lisbon Owners’ Association asked the government to clarify whether the use of a rent renewal factor in old contracts prevents new renewals in 2024, using a model that can be found for this type of rent.
The reason for doubt is the fact that the changes provided for in the Mais Habitação law allow for the first time the renewal of so-called old contracts (pre-1990 housing rentals) based on a coefficient calculated annually by the National Institute of Statistics (INE). ) and that in 2024 it will be 6.94%, and how this can be combined with the decision on the old rent, which is frozen.
In a conversation with Lusa, Diana Ralha from the leadership of the Lisbon Property Owners Association (ALP) states that despite the state budget for 2023 (OE2023), which states that the government “had until the end of May to present a decision [para os contratos antigos] based on the rent freeze study”, which was commissioned by the IHRU, “that study does not exist.”
By now, as Diana Ralha points out, “landlords who entered into contracts before 1990 should already know what will happen to their contracts.” Since this does not happen, the question remains: “Have they updated to 1/15th the value of tax assets as expected? Or is there another compensation that the state will promote?”
Only after this has been determined, he emphasizes, “will the legislative coefficient of 6.94% from 2024 be applied in parallel.”
Given the time lag, doubts have arisen as to whether the application of the coefficient (which implies that the tenant is given 30 days’ notice by letter) from January onwards will prevent a new update in the particular case of these agreements.
For this reason, the ALP earlier this week sent a “request for clarification” to the guardianship authorities, asking: if landlords now update their rents using the INE factor, they will be prohibited in 2024 from making any other update using the INE factor. model that comes to the government to approve these contracts,” but did not receive a “response.”
Author: Lusa
Source: CM Jornal
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