Renewal and Termination of the Lease

How to end or renew your tenancy contract when renting in Brazil...

Renewing Rental Contracts

If neither the owner nor tenant has given notice for the contract to end when the lease expires, then tacit agreement is made for it to continue. Formal renewal is carried out, usually for a further 12 or 30 months.

The landlord has to give three months' notice to the tenant if they want to take the property back at the end of the agreed term.

Terminating the Lease Contract

To terminate the lease early, the tenant may give 30 days' notice to the owner at any time, but will forfeit one month’s rent and charges as a tax to be paid to the owner.

If a person’s employer transfers the tenant to another place of work, the tenant must still give 30 days' written notice to the owner but will not have to pay the charges. There must be proof of the transfer (provided by the tenant’s employer).

Notice must be given in writing. There is no requirement by law for the letter to be sent to the landlord by recorded delivery, but it is recommended.

The landlord does not have the right to take back the property during the course of the lease if all of the contractual duties are being met by the tenant.

During the term of the lease, the landlord has the right to terminate the lease for:

  • Breach of contractual duties by the tenant
  • Non-payment of rent or any other contractual costs
  • If urgent repairs need to be carried out and:
    • they can't be done while the tenant occupies the property; or
    • they can be done with the tenant in residence, but the tenant does not agree to them

Contracts may contain termination clauses, which authorize termination on insolvency, bankruptcy, compromise with creditors and similar events.

Rental Increases

Rental increases are determined by the current legislation applying the index fixed by the Federal Government of Brazil (in Portuguese).

Other organizations used to calculate rental increases include the IGP-M which is the General Market Price Index (Índice Geral de Preços de Mercado) or the Getulio Vargas Foundation (da Fundação Getulio Vargas).

These Brazilian price index calculating organizations are official and reflect various prices within a set period.

Inventory on Departure

On leaving the apartment, the tenant must leave the property as it was found. This can be verified through the inventory (vistoria) that the tenant signed when they moved in, and also in some cases by the CD of photos of the property made by the agent and given to the tenant when the contract was signed.

If there are any obvious issues and damage to the property, the owner or estate agent and tenant can negotiate the amount of the deposit to be deducted before reimbursement.