Law 13/2019, of the 12^th of February, came into force, which implements extensive and important amendments, namely, to the Civil Code and to the New Urban Rental Regime (NRAU), among other regimes on this subject, designed to correct imbalanced situations between tenants and landlords, to reinforce the security and stability of the urban lease and to protect tenants in situations of particular weakness.

Concerning the Civil Code, we briefly note the following amendments:

• Regarding the right to compensation of the landlord in case of default of rent payments by the tenant, there was a reduction from 50% to 20%;
• If there is no written contract by fault not attributable to the tenant, it may nonetheless prove its existence, namely by proving the monthly payments of the rent for a period of 6 months;
• The compensation of deduction of rent for the works carried out by the tenant is no longer established;
• For the landlord to terminate the contract due to the late payment for more than 3 months of the rent, it is necessary that the landlord gives notice of the situation to the tenant after the third delay.
  • Particular in the lease agreements for habitation purposes:
    • The fixed term lease agreements cannot have a duration of less than 1 year, except in cases of temporary residency, and may be renewed for periods not inferior to 3 years;
    • The opposition to the first renewal of the lease agreement by the landlord shall take effect only after 3 years, counted from the signature of the agreement, unless established otherwise;
    • In the lease agreements of indefinite duration, the landlord may terminate the lease agreement on the grounds of demolition and works or extensive renovations, provided that it does not result in a place with similar characteristics to those previously let, being apt to maintain the lease. The lease agreement may also be terminated by a notice given at least 5 years before the termination date, instead of 2 years, as long as the confirmation procedure, now once again in force, is complied with, in the terms provided in the law.
  • Particular in the lease agreements for non-habitation purposes:
    • The fixed term lease agreements are automatically renewed for equal periods of duration or for 5 years if the duration is shorter, unless established otherwise. In addition, the landlord cannot oppose to the renewal of the agreement in the first five years of the agreement.
    • In these lease agreements, the landlord can only terminate the agreement on the grounds of demolition or works, by notice given at least 5 years before the termination date. In this case, the landlord is obliged to compensate the tenant and the workers separately for the damages resulting of the termination of the contract.

Concerning the New Urban Rental Regime (NRAU), we particularly note the following amendments:

• In the 8 years period for updating the rent, if the tenant invokes and proves that his household’s RABC is inferior to five RMNA, he can request the reassessment of the rented property;
• In the case of extraordinary rent update, the protection was extended to those that live with the tenant with 65 years or older, or with a disability with a degree of incapacity equal to or superior than 60%, such as spouses, unmarried partner or relative in first degree of the tenant;
• New rules have been established in order to provide more protection to the tenants with 65 years or older, or with a disability with a degree of incapacity equal to or superior than 60%, such as when the transition to the NRAU occurs, if the tenant has not duly proved his age or his disability, and if he lives for more than 15 years in the let property, the landlord can only oppose to the renewal of the lease on the grounds of demolition, works or extensive renovations;
• A new procedure has been established with the purpose of enforcing the tenants’ rights. This new procedure, known as Injunction on Lease Matters, is intended for the payment of compensations due for the performance of works, in substitution of the landlord, for the cease of activities dangerous to the health of the tenant, among others;
• Consequently, the Injunction Service on Lease Matters (SIMA) was created, with national jurisdiction, in order to ensure the proceedings regarding on these subjects, under the terms established by law.