Rent Contract

Hello John,

You really don't need a lawyer regarding a rent contract, it will cost you a fortune for one to tell you what almost anyone who rents in Brazil can tell you for free. Provided of course you could even find a lawyer who speaks enough English for you to hold a conversation with.

The basic things that you need to know about rental contracts are as follows:

1. By law, rental contracts are for a duration of 30 months. Should you wish to cancel the contract during the first 12 months then you will incur a contractual fine equal to the remaining balance of the the first 12 months rent. From the 13th month onward there is no longer a fine for cancellation, but you must give notice equal to the number of months rental deposit you have paid. Essentially you give your notice of intent to vacate and then the landlord uses the deposit you've paid as the rent for the remaining months.

2.  Rent cannot be increased during the first year, in the second and third year it can be increase, but this is limited by law to some index of inflation (don't know exactly which one).

3.  The law permits the landlord to pass the property taxes along to tenants, so the IPTU is something additional that you're going to have to budget for.

4.  Tenants are responsible for paying any condominium fees in apartment buildings, there may be two, an internal fee for maintenance, lighting in common areas, services, some includes your water bill in this (need to ask) and if so there is no individual billing you'll pay a percentage of the overall (single) water bill based on the square footage of your apartment. Some buildings in Brazil now have individual water meters in which case you pay the bill you will receive. You also must pay for all utilities. There may also be an external condominium fee, which covers maintenance of common areas (external), gardening, security, illumination, etc. Condominium fees can be extremely high and in some buildings it's almost like paying an additional rent. Sorry, that's just the way it is.

4.  You may be required to provide a guarantor (fiador) or purchase rental insurance or both.

5.  You must return the dwelling in exactly the same condition in which you received it, so if it was freshly painted when you moved in, you must repaint it before vacating. You are responsible for any damage that you have done to the unit and must effect repairs necessary before vacating. Normal wear and tear excepted.

6.  Since utility bills (light, gas, water, telephone, cable) are usually linked to the dwelling, you will probably need to provide the owner or administrator with proof that these have been paid. If YOU find that you get a bill from some utility, or hook-up is refused, due to non-payment of some former tenant you will need to provide the utility a copy of your rental contract and will not be charged for any outstanding amount before you took possession (posse).

7.  Some contracts, not all, allow the tenant to make alterations to the unit; however again the dwelling MUST be returned to it's original condition before vacating, unless you have an agreement with the owner who may wish it to remain as it is.

8.  You will likely be obligated to obtain insurance, not only on your contents, but also for liability and damage. Even if you aren't it's best to arrange it anyway. Can you imagine the staggering costs you'd incur if you accidentally caused a fire that destroyed your apartment and/or others?

9.  Almost all contracts restrict use to purely residential purposes, so you'd best check with the owner/administrator should you wish to carry out any commercial activities there.

10.  If your building IS a condominum then you'll need to find out who the "Sindico" is, that's the manager who may be a fellow resident, or a professional who does not live in the building but is employed to manage. You will also want to ask the Sindico for a copy of the "Regulamento Interna" the rules of the condominium so you will know what rights and obligations you have in regard to your fellow residents who may be themselves owners or other tenants.

If you still have any unanswered questions about your contract (they're all pretty well standardized) and you have access to a scanner send me a private message, I'll give you my e-mail address so you can send me a scanned copy with a note as to what clauses you need explained. Sorry, for security reasons I only give out my e-mail in PM.

Cheers,
William James Woodward, Expat-blog Experts Team

Here is another quick question: what is the law about the owner wanting to cancel the agreement on his behalf? how much notice does he need to give?