Not able to pay rent?

Last activity 23 May 2022 by ashbid68

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Cristian TomaActive member12 May 2022 17:44:35

Hi everybody,

I have a question regarding not paying rent, either because of decreased income or by choice (for example moving to a new cheaper apartment). I was not able to find much online on this topic.

What happens in such a situation, other than the landlord rescinding the rental contract and evicting the tenant? Anybody has any experience with such a situation? Any long-term legal problems of any kind for the tenant?...

And how is this usually handled? Just inform the landlord that we're not able to pay the rent agreed on due to economic difficulties/inflation/etc. and move out when the period paid for expires? Does proof need to be presented? Do I need a lawyer to handle this?

Thanks a lot for any input.

Cristian

nz7521137Portugal Advisor13 May 2022 07:09:48

562

@Cristian Toma This is a very interesting topic also for landlords and I hope that JohnnyPT will be able to shed some light on this.

chrisschubert21Contributor13 May 2022 09:00:12

128

I hope also to get some information on this topic.

lindaevaMember13 May 2022 13:19:03

@Cristian Toma . Good question. I wish to know more about If you find information please share. Exchange information helps us. Always we have to prove that is a real need to change.

Cristian TomaActive member14 May 2022 12:37:22

@nz7521137 There is actually quite a bit of info online for the landlords, but not much from tenants' perspective...

JohnnyPTPortugal Expert15 May 2022 11:04:07

4330

Failure of the tenant to fulfil the lease agreement / Default on rental payments

https://www.expat.com/forum/viewtopic.p … 93#5415377

(Post #29)

gwynjBulgaria Expert15 May 2022 15:10:47

2173

@Cristian Toma

Your plan to let the landlord know, and voluntarily leave at the end of the period you've paid for, is quite a simple and direct option. If you've paid all your bills, and leave the property in good, clean condition, then, all things considered, it's not a bad outcome for the landlord. There are lots of tenants who are much more devious and find ways to spin it out while not paying, and forcing the landlord to go to the courts to get an eviction order (while causing damage and not paying bills during the process).

Landlords can take action against tenants (e.g. for breaking the contract, damage to the property, unpaid bills, etc.) but it's typically long-winded and expensive. Usually, their recourse is to keep your deposit.

JohnnyPTPortugal Expert15 May 2022 17:19:06

4330

@Cristian,

Your question raises different perspectives. One is for default in inability to pay rents, covered here in post #6. The other is termination by the tenant for various reasons, including a desire to find a better or cheaper home, already addressed here:

https://www.expat.com/forum/viewtopic.p … 93#5075338

(Post #11 - 5a. Termination by the tenant)

You don't need a lawyer, as long as your decisions safeguard your rights and duties as a tenant, and safeguard the landlord's rights and duties as well.

theresacjMember15 May 2022 22:19:52

@Cristian

I totally agreed with @JohnnyPT. You don't need a lawyer, as long as your decisions safeguard your rights and duties as a tenant, and safeguard the landlord's rights and duties as well.

Cristian TomaActive member16 May 2022 18:10:55

#10

@Cristian

I totally agreed with @JohnnyPT. You don't need a lawyer, as long as your decisions safeguard your rights and duties as a tenant, and safeguard the landlord's rights and duties as well.
- @theresacj

Thank you. I am not quite sure about the "legalese" above - what exactly does the safeguarding mean?... (in practical terms, I mean, eventually an example would be useful)

JohnnyPTPortugal Expert16 May 2022 19:01:53

#11

4330

Eg. According to the law, if you intend to cancel a lease contract, you have to comply with the legal deadlines & terms to notify the landlord about it. Also the landlord has to meet the legal deadlines & terms to notify you that he wants to cancel the contract. Another example is that you have until the 8th of every month to make your rent payments, etc. You have to comply it, it's a duty for you, and a right for the landlord. A contract has clauses, and they must be fulfilled by both parties, because both signed it. Rights and duties ..... Whether it's in a lease, a bank loan, ... or any agreement legally accepted by at least 2 parties.

Cristian TomaActive member17 May 2022 08:41:08

#12

OK JohnnyPT, thanks for explaining.

I have one more question. I went over the information linked above and 5a says: "5a. Termination by the tenant (........) If tenant fails to comply with this, he will have to pay the rental months corresponding to the notice period not followed."

Which makes sense. However, does that change in the light of my question? What if the tenant doesn't have the money to pay the rental months corresponding to the notice period? Surely that must happen sometimes to some people?...

On a separate note, everybody keeps saying that Portugal laws are very tenant-oriented, but I find it not so. I have lived so far in 5 different countries on 3 continents and Portugal is the only one where the tenant has to give notice 3 or 4 months ahead. I fail to see how is that helping the tenant. Everywhere else I lived it was one month's notice. Not to mention the BS of having to live in the apartment for at least 1/3 of the duration of the contract before being able to even give notice, which is even a bigger pain in the neck. If this is tenant-oriented, I cannot even imagine how much worse things were before this.

JohnnyPTPortugal Expert17 May 2022 10:02:24

#13

4330

These are the conditions considered in the lease law, to avoid conflicts between the parties involved. But you can agree with your landlord on more flexible forms of contractual termination, as long as those conditions are written in the contract. If both parties agree, for example, on one month's notice to terminate the lease, I don't think it's a problem.

It all depends on the type of person your landlord is. I have a relative who is landlord, and a few years ago, his tenant didn't pay one month rent, and used the month's deposit paid in advance (mês de caução) to be used as payment in that month. This didn't lead to any legal action on the part of the landlord, because this situation never happened again. There are rules, but if people are understanding and flexible, problems are overcome without unnecessary conflicts, whether they are legal or personal...

nz7521137Portugal Advisor21 May 2022 16:32:14

#14

562

Thanks to JohnnyPT for explaining all the above. It seems that every country has different rules and I found the ones in Portugal quite balanced as long as both parties are not too "bad". Overall the landlord has much more risk to carry, especially if the tenant is bad (damages the property, doesn't pay, doesn't leave). I think that the latter is the same everywhere. I am a landlord and I have also rented for a long time so know both sides.

conradmilpitasMember21 May 2022 19:05:23

#15

@JohnnyPT

Paying close attention to the content of the lease contract will be best for everyone to avoid rent disagreement. Good note for rental property owner to ask any USA and probably Canadian renter applicant is to provide their home country credit or at least FICO score from their bank or credit companies. Which will give you the credit worthiness of said applicant, it will determine how discipline they are managing their credit and financial responsibility. I use to have rental property and make a FICO of at least 780 score and good credit report(there's only 3 credit reporting companies in US that are legit). that eliminate 95% of flaky renters. You can not hide any of your financial history here in US, they owned you totally

.. I just don't know if there's similar credit reporting companies in EU, I usually used Transunion and Equifax here in USA.

regards

nz7521137Portugal Advisor22 May 2022 14:33:16

#16

562

@conradmilpitas Germany has an organisation called Schufa, which provides the information you mention. There is definitely nothing that would be EU-wide.

JohnnyPTPortugal Expert22 May 2022 18:33:13

#17

4330

@conradmilpitas,

As far as I know, in Portugal, this list of bad tenants does not exist yet... But there are these debtors lists to the tax authorities and to the portuguese social security. Debtor can be a portuguese person or of other nationalities:

https://www.expat.com/forum/viewtopic.p … 33#5420878

(Post #19)

____

It seems that soon there will be access to a person's rental history, to know if a tenant had problems in past leases. But unfortunately it is not yet available...

https://balcaodosenhorio.pt/base-de-dados/

nz7521137Portugal Advisor23 May 2022 16:19:37

#18

562

It seems that soon there will be access to a person's rental history, to know if a tenant had problems in past leases. But unfortunately it is not yet available...

https://balcaodosenhorio.pt/base-de-dados/
- @JohnnyPT

I wish we had that in Germany, but I know it will never come. It would be seen as discrimination and the state doesn't want to deal with all the people that cannot get a home anymore because of a bad rental history. As a landlord I would love this.

ashbid68Member23 May 2022 16:35:00

#19

They have started this in england .. it was they could only go back 3 to 6 months .. now the buggers . Have officially linked all housing association tenants to coucil records if you get or are offered or apply they can discriminate against . You if you have had a rough time and been up and down with payments .. and if UC. messes up or messes you aroundcand or CANCELS you illegally.. they get to see YOUR LIFE. ECONOMIC PAST ppl should be very afraid of the future.. packed full of different types of track and trace ..

adebtors ..

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