According to the idea of contractual freedom, the landlord and tenant may freely include a yearly rate rise in a rental agreement. The update coefficients in effect at the moment will control this, though, if they haven't done so but have projected an increase in contract income. New rent update coefficients are released annually.
Accordingly, "The annual rent update coefficient of various types of rental is the result of the entire variation in the consumer price index, without housing, corresponding to the last 12 months and for which values are available on August 31st, calculated by the National Statistics Institute," as stated in number 1 of article 24 of Law No. 6/2006, of February 27, which approved the New Urban Lease Regime (NRAU). Every year by October 30th, this update must be published in the Union's Official Gazette. The most recent one was published on October 18th, 2024, under notice number 23099/2024/2.
As a result, the anticipated income update for 2025 is 1.0216, or 2.16%, which is significantly less than the income update for 2024, which was 6.94%. However, "The income resulting from the update referred to in the previous article is rounded up to the next higher cent unit," as stated in article 25 of the NRAU.
Most asked questions:
1) Is the upgrade required?
The landlord is not required to request an increase in rent.
2) When can the landlord ask the renter for this update?
Either the contract specifies and governs the update, or it can be requested once a year if it is not. Article 1,077 of the Civil Code states that the first modification may be sought a year after the start of the lease, and so forth.
3) How much time does the landlord have to give the update?
The lessor must give the lessee written notice of the change at least 30 days prior to the anticipated impact.
4) What happens if the landlord doesn't ask for an update on rent?
The fact that the increase was not requested will now put the recovery of the amounts at risk in accordance with paragraph d), paragraph 2, of article 1,077 of the Civil Code. Nonetheless, the coefficients can still be used if the first date is no more than three years ago.
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