In the event of late payment, the lessor may charge the lessee the amounts due (which may be done extrajudicially or judicially) and / or require the lessee to vacate the rented property due to the breach of what was agreed previously.

How to charge late amounts

The charge may be made extrajudicially or judicially. In any case, however, collection will only be possible after the lessee has effectively failed to honor its commitments.

How to get back the rented property

In addition to charging the amounts due, if the lessor wishes the lessee to vacate the property, he must file a lawsuit against him for this purpose. Although it is possible to ask the tenant out of court to vacate the property, action will always be necessary in cases where he refuses to leave.

In the case of urban leases (residential, commercial or seasonal leases governed by Federal Law), the appropriate action is the eviction action. It is noteworthy at this point that the same eviction action may deal with both the request for termination of the contract and the request for recovery of the amounts due.

Lessor or lessee: who should pay for the works or renovations done on the property?

What is an improvement?

Improvements are works or renovations or other changes made to a particular good in order to conserve, improve or make it more beautiful. The concept of "improvement" includes activities such as changing a floor, painting a wall, changing a pipe, repairing the power grid, changing a door, changing a light, among others.

Improvements can, according to the law, be of three types: voluptuous, useful, or necessary.

The necessary improvements are those intended for the conservation of the good, that is, those whose realization is essential for the good to be maintained in good condition or to prevent it from deteriorating. If a necessary improvement is not performed, then the asset may be put at risk or lose value.

Examples of necessary improvements are: renovations made to contain leaks or infiltrations that may affect the property structure in any way; the exchange of damaged electrical cables, creating a risk of short circuit; the execution of works to reinforce a particular pillar that is in danger of collapse.

Improvements to be compensated by the landlord

To say that a leasehold should be compensated by the lessor is to say that he should reimburse the lessee for the losses and costs that the lessee had incurred in carrying out the reform.

The Urban Rental Law states that, as a rule, improvements made by the lessee must be compensated by the lessor in the following cases:

  • when improvement is required;
  • when the improvement is usefuland has been previously authorized by the lessor.

It is said "as a rule" because the lease can state that the lessee will not be entitled to any compensation. However, in order not to be entitled to compensation in such cases, the contract must expressly establish this rule, so that if the contract contains no mention of it, the tenant will be guaranteed his right.

Thus, the lessor will not have the duty to indemnify only in the following situations:

  • if the tenant's improvement is of the voluptuoustype, that is, intended merely to beautify the property;
  • if the lessee's improvement is of a usefultype but has not been previously authorized by the lessor;
  • if the lease provides that useful or necessary improvements should not be compensated.

Although there is no legal obligation to indemnify in the case of voluptuous or useful improvements made without prior permission of the lessor, nothing prevents the lease from establishing this obligation, and where this happens, the lessor shall indemnify the lessee, not by virtue of the law, but as provided for in the lease itself.

Retention right

If the landlord fails to indemnify the lessee for any of the indemnifiable improvements, the lessee may exercise his right of retention, that is, he may refuse to return the property until it is properly indemnified.

It is noteworthy, however, that the lease may provide for the tenant's waiver of the right to withhold, as well as the right to compensation for useful and necessary improvements.

How to readjust the rent

Rental pricing

One of the main elements of the real estate lease agreement, in which one person rents one property to another, is the rent. The rent is precisely the price of the lease, i.e. the amount that the lessee pays the lessor to use the rented property.

In a lease, the landlord is the person who rents one property to another. It can be said that the most common situation is where the landlord is the property owner himself (i.e. the property owner). However, it is also possible that the landlord is someone else, depending on the case.

The lessee, in turn, is the person who rents someone else's property, paying the lessor the rent. In the case of urban residential property leasing, the tenant is also called the tenant.

It turns out that lease agreements can usually have very long terms, so that the lessee uses the rented property for several months or years. In these cases, it is possible that the rent value needs to be updated (due to inflation) or revised (due to an increase or decrease in market rent prices). These two possibilities (update and revision) will be dealt with below.

Before you follow, however, it should be noted that this guide is applicable to urban property rentals in general except in the following cases:

  • if the rented property is public;
  • if the rented property is a rented parking space on its own (i.e., not linked to another property, such as a commercial room or an apartment);
  • if the lease is for advertising space;
  • if the rented property is in apart hotelsor hotels;
  • if the lease deals with a lease.

This guide is intended for rentals that are subject to the Urban Rentals Act. That is why it does not apply to the cases mentioned above, since that law expressly provides that such cases are not covered by it.

Thus, this guide will apply, for example, to apartment rentals, office spaceshopshousesshedsurban lots, in short, to the rental of any urban property to which the Urban Rental Law applies.

Other names for this document: Urban Commercial Property Rental Agreement, Urban Non-Residential Property Rental Agreement, Commercial Rental Agreement, Commercial Room Rental Agreement, Commercial Store Rental Agreement.

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