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Older rents for lower income tenants to be updated for inflation

The old rent will remain without the transition to the new city lease regime, but in the case of tenants with an Adjusted Gross Annual Income (RABC) of up to five annual national minimum wages, they may be updated for inflation.

This provision is part of the More Housing Bill, which is available from Friday evening at www.consultalex.gov.pt and is under public comment until March 10.

According to the diploma, “if the tenant cites and proves that his household’s RABC is less than five RMNA [retribuição mínima nacional anual] the contract does not transfer to NRAU [Novo Regime do Arrendamento Urbano]”.

In these situations provided for by the same diploma, “the rent may be renewed in accordance with article 24”. [coeficiente de atualização]”from NRAU.

These are so-called old leases from before 1990 that were not transferred to the NRAU under the safeguard created by the new lease law of 2012 for tenants with an annual income of up to a certain amount.

This scope includes tenants whose cumulative-adjusted gross annual income is less than five RMNA, which is equivalent to 14 monthly national minimum wages or the equivalent of €53,200 per year in 2023.

The annual rent update for these contracts is now based on a factor calculated by the National Institute of Statistics based on the “total change in non-housing consumer price index corresponding to the last 12 months and for which available values ​​are available.” as of 31 August.”

Still in the area of ​​leasing, but in terms of vacant buildings, the government’s proposal specifies that telecommunications, water, electricity and gas companies inform municipalities about low or no consumption properties.

The law already provides that “telecommunication companies and gas, electricity and water distribution companies must send to the municipalities by October 1 of each year an updated list of no consumption or low consumption for each building of the city or autonomous faction and, by electronic communication or other computer support” .

The government’s proposal now specifies that this list “should include a matrix identification of each building.”

The More Housing program will return to the Council of Ministers on March 16, when the measures that do not need to be submitted to Parliament and the bill that the Government will send to the Assembly of the Republic will be approved. .

Among the measures included in this program, which is worth an estimated €900 million, are rent support, rental incentives, the creation of an emergency contribution to local housing and the suspension of new licenses for this activity.

Author: Portuguese
Source: CM Jornal

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