Menu
Expat.com

Rescinding rental contract

Last activity 20 July 2022 by JohnnyPT

Post new topic

ctomac
Hello,
I have a question regarding the timeline for rescinding a rental contract. I've been looking for information online about this, and I understand that at least 1/3 of the term of the initial (or renewal) duration of the contract should have passed before the contract can be rescinded by the tenant.
At the same time, my understanding is that the decision to rescind the contract has to be communicated to the landlord at least 120 days before.

Now, this is where I cannot quite figure out how this works in practice.
For example, if I have a 3-year contract that started on 1 January of this year, and I already intend to leave the apartment, when would I be able to communicate my decision to the landlord while respecting the 120 days notice term? Would I be able to leave the apartment at the end of December (after living in it for 1/3 of the 3-year term) and communicate my decision to the landlord at the end of August (120 days notice)?
Or do I have to wait until the end of December and THEN only notify the landlord about my intention to rescind the contract, therefore being able to actually live in the apartment for another 120 days and leave at the end of April next year?

Anybody, any experience with this?
Thanks a lot,
C.
lindaeva
@PedroSilva1982
Hi Pedro, I have the same doubt and similar case. I have one year contract . Starting in Apryl this year. According to your explanation I can notice anytime but I should keep the monthly payment until October. Is that correct?  I also was required to  pay the amount  referred as to 4 months in advance which mentioned to be used after notice.
Thus, dos it means that I have to notice until August in order to have 4 months already payed as part of rental?
I also have deposit for any damage.
The contract is quite weird for me on my understanding .
If you kindly can explain to me when I should notice In order not to broke and not losing the advance payment.
Appreciated your help
Linda
ctomac

@lindaeva , from what PedroSilva1982 says, it looks like you have to live there for 4 months (until end of July), then notify landlord, plus another 4 months after that until the end of November. 8 months altogether, right?

JohnnyPT
5a. Termination by the tenant
(Post #11)
ctomac
@JohnnyPT , the terms described in the link above seem to be related to non-renewal of contract (the tenant lives in the accommodation for the full duration of the contract but does not want to renew).

Prazos legais para inquilinos
A partir do momento em que decorre um terço do prazo inicial do contrato de arrendamento, o inquilino pode sempre fazer a denúncia, desde que comunique ao senhorio com a antecedência mínima de:
120 dias do termo pretendido do contrato, se o prazo deste for igual ou superior a um ano;
60 dias do termo pretendido do contrato, se o prazo deste for inferior a um ano.
Para impedir a renovação automática do contrato, inquilino deve comunicar a sua intenção ao senhorio com a antecedência mínima de:
120 dias, se o prazo de duração inicial do contrato ou da sua renovação for igual ou superior a seis anos;
90 dias, se o prazo de duração inicial do contrato ou da sua renovação for igual ou superior a um ano e inferior a seis anos;
60 dias, se o prazo de duração inicial do contrato ou da sua renovação for igual ou superior a seis meses e inferior a um ano;
Um terço do prazo de duração inicial do contrato ou da sua renovação, tratando-se de prazo inferior a seis meses.

Isn't there any recourse for the tenant at all for rescinding earlier than the terms above?... For example, if the living conditions (such as ambiental noise) are intolerable, and the tenant(s) were not aware of it when signing the contract, don't they have any way out at all? Are they simply forced to live there for the duration(s) above?
JohnnyPT

You can always talk to your landlord, explaining the problems you have encountered in the property. The termination can be friendly. If you feel resistance from him, I suggest you get advice from a lawyer or solicitor, as any explanation here outside the conditions stipulated by law, becomes meaningless, as we don't know what your lease contract is, the clauses written there, the duration of your contract, etc, as well as the rationale for your reasons for not fulfilling the contract you have signed...

Your contract is likely to be less than a year. We are talking about 2 months' rent (60 days), one of which you can use the month's deposit (mês de caução) previously paid...


ctomac

@JohnnyPT , Great, thanks, I'll do that. That's what I was thinking of doing anyway, I just wanted to check if anybody had another suggestion/experience.

ctomac

Your contract is likely to be less than a year. We are talking about 2 months' rent (60 days), one of which you can use the month's deposit (mês de caução) previously paid...



- @JohnnyPT

Sorry, I didnºt quite understand what you meant this last part - our contract is for 3 years, not less than a year. Unfortunately we were kinda duped into signing for 3 years, being at the time newcomers in Portugal and not fully aware of all of the details and the implications.
JohnnyPT

Ok, it's 90 days. Normally you sign a contract for 1 year, if you don't know the country, city, neighbourhood yet... There are always better houses in better places. One year is enough to do this research.

ctomac
@JohnnyPT , Unfortunately we found this out the hard way... In any other country I lived before (there've been quite a few) there was no such clause in any rental contract saying that the tenant has to live there for at least one third of the initial contract in order to be able to try to move out legally (not to mention the 120 days notice, which is 4 times longer than anything I've seen anywhere else).
Talk about "tenant-friendly laws in Portugal" as I've often seen them marketed online... That was probably the biggest disappointment for me so far in this country. I feel now like a serf tied to the estate.
JohnnyPT

These "friendly" laws for tenants that you mention, are for old rental contracts (pre-1990 rental contracts) and also for tenants over 65 years old and with low income. There, the landlord performs a social duty for these people, a duty that should be carried out by the Portuguese state! For these cases, laws are friendly to the tenant. For the other, more recent agreements, new rules are applied, which, in my opinion, are fair to both landlord and tenant. In your case, remember that the landlord may have used a real estate agency, who charged a commission, which is at least one month's rent... Do you think it's right that the tenant can leave after 1 month of lease? Put yourself in the landlord's shoes...

ctomac

In your case, remember that the landlord may have used a real estate agency, who charged a commission, which is at least one month's rent... Do you think it's right that the tenant can leave after 1 month of lease? Put yourself in the landlord's shoes...

- @JohnnyPT

She used some guy who was paid half a month's rent as commission. Theoretically what you say about people moving after one month of lease sounds right.
But let's think for a second, do people really move like that, every month or two? Do people like to move from one place to another all the time? I'm not saying here it doesn't happen. It may. But who would do that? Other than somebody who is in a really bad situation and cannot bear anymore to live where they live.
And in that case the landlord should not be protected by any law.
If I am a landlord and try to lease out an accommodation which I know has issues, I should disclose those issues to the prospective tenant, and in that case I should be protected by the law. THIS would be fair to both tenant and landlord, like you said.
And 120 days notice???? Does that mean that once you provided the notice the landlord has 120 days to bring prospective tenants into your apartment? Wouldn't 30 days be enough for the tenant to find new lodging and the landlord to find a new tenant? I, as a tenant, do not find this friendly at all. And I am not sure how somebody who's 65 or on low income would see this term as "friendly" either.
Anyway, I've no intention to start a dispute here, but to me Portuguese tenancy laws are landlord-friendly compared to what I have experienced in the 4 countries I've lived before in Europe, Asia and North America.
ctomac

You can always talk to your landlord, explaining the problems you have encountered in the property. The termination can be friendly.

- @JohnnyPT

Hi JohnnyPT, just wanted to say thanks for the advice above. We wrote to the landlord and explained the problems we have and she agreed to let us break the lease 10 months early. Great relief for us not having to see any lawyers.
JohnnyPT
@Ctomac,

I'm glad you have your problem solved. I just wanted to add the following:

Commissions that real estate agents take nowadays, is between 1 to 2 months of rent. In your case, half a month's rent is rare and weird indeed.

Regarding the rental market in Portugal, I understand that you don't understand and agree with it. But I can assure you that it has always been more favourable to the tenant. Only with the new rules in 2006 and later in 2012, the lease market became more flexible and favourable to the landlord. Otherwise, nobody would put their own houses up for rent, because it was so unfavourable for the landlord. I know what I'm talking about...
bettinakozlowski
@ctomac
As a landlord in another country, I can assure you you can’t just cancel any time you want to after you move in. I think 3-year contracts are strange, but you signed it, so the landlord believes you did so in good faith as did she or he in renting you the place. If ambient noises are caused by neighbors, it’s an issue of you having to take action unfortunately, bc the landlord doesn’t know what’s going on with your neighbors. Also, a three- month cancellation period is quite common - in your case  it’s four months which sounds a lot, but one month is definitely not the standard across the EU.
bettinakozlowski

@ctomac yeah and in the US you can be evicted after one month’s rent not paid within two weeks after your due date, whereas in Europe, in the countries I’m very familiar with, I’d you don’t pay rent you get tu stay for months sometimes years before you get kicked out by a bailiff. So the idea that Portugal has a “landlord priority” system seems driven by a subjective emotional response, not facts. Landlords incur high costs with the turnover from one tenant to the next - repairs, paying for the search for a new tenant, etc. 

bettinakozlowski

@JohnnyPT agree 100% - that’s why there is a retraction period of two weeks after you’ve signed a rental contract - without giving a reason, you can cancel a signed lease before moving in. If you want a one month cancellation you can get a short term rental instead - much more expensive, but more like an Air B’nB. I

ctomac
@bettinakozlowski
We informed the landlord about the noise from the neighbours, she wrote to the condominium asking them to do something about it, was answered that this is not their job, she then advised me to talk to the neighbour and if not resolved call the police, I did both and it did not work (the neighbour did not stop the noise and did not open the door for the police when we summoned them), then the landlord said she will try to talk to the neighbours herself, but nothing came out of that either, so there's nothing else we could do other than buy ear plugs. Which we did, before the landlord agreed to let us go.
And it was not only the neighbour - there is a private school right across the street (I understand one of the most expensive in Portugal), with cars stationing illegally and blocking all adjacent roads 3 times a day every day and honking incessantly (we complained to the Porto City Hall about that, they wrote back after two months that the situation was resolved, which it wasn't - there was absolutely no change), and when the cars are not honking we hear constant screams from the school's gymnasium which opens below our windows, and then the school prepared their end-of-year festivities and for over a month we had to listen to almost-constant loud music and people talking in microphones, and when we don't hear that we hear the garbage collectors banging the huge bins at 11 or 12 at night, again right below our windows, and then we hear airplanes overflying our apartment shortly before landing, and I could continue here... It was a hell for us for 7 months and we're glad it's soon over.
ctomac

@JohnnyPT agree 100% - that’s why there is a retraction period of two weeks after you’ve signed a rental contract - without giving a reason, you can cancel a signed lease before moving in. If you want a one month cancellation you can get a short term rental instead - much more expensive, but more like an Air B’nB. I

- @bettinakozlowski

Now THAT I didn't know (about the retraction period of two weeks). Where is this legislated?..
ctomac

@ctomac yeah and in the US you can be evicted after one month’s rent not paid within two weeks after your due date, whereas in Europe, in the countries I’m very familiar with, I’d you don’t pay rent you get tu stay for months sometimes years before you get kicked out by a bailiff. So the idea that Portugal has a “landlord priority” system seems driven by a subjective emotional response, not facts. Landlords incur high costs with the turnover from one tenant to the next - repairs, paying for the search for a new tenant, etc. 

- @bettinakozlowski

Isn't the cost of repairs covered by the deposit? And how much can it cost to put an add up on Idealista or OLX?
My initial question was not about law-breaking landlords or tennants, however common those may be, but about parties who fulfilled their obligations but still are forced to stay together longer than it would seem reasonable. At least compared to the other countries I have lived in so far.
For example, I don't know about the US, are tennants there forced to stay in the lodging at least 1/3 of the lease term before being able to give notice? I kinda doubt it, but I may be wrong. Do they have to give a 4-months notice? I doubt that too.
JohnnyPT

@JohnnyPT agree 100% - that’s why there is a retraction period of two weeks after you’ve signed a rental contract - without giving a reason, you can cancel a signed lease before moving in. If you want a one month cancellation you can get a short term rental instead - much more expensive, but more like an Air B’nB. I

- @bettinakozlowski

Now THAT I didn't know (about the retraction period of two weeks). Where is this legislated?..
- @ctomac

This rule exists for any service contract, such as telecommunications. I am unaware that it is applied in lease contracts...

Articles to help you in your expat project in Portugal

  • Dating in Portugal
    Dating in Portugal

    If it's true that dating in general can be tricky and present its challenges, even more so when we talk about ...

  • The Portuguese lifestyle
    The Portuguese lifestyle

    Moving to a new country means you will be discovering a new culture and exploring different habits, as well as a ...

  • Phones and Internet in Portugal
    Phones and Internet in Portugal

    Whether or not you are a tech-savvy person, this is still quite an important part of everyday life – and it ...

  • Work visas in Portugal
    Work visas in Portugal

    Portugal can be a great place to live in. This Southern European country is known for its great weather, ...

  • Renting options in Porto
    Renting options in Porto

    Over the past few years, rent prices in Porto have been soaring. As the city's popularity grows among tourists ...

  • Working in Lisbon
    Working in Lisbon

    Lisbon is Portugal's capital and also the largest city in the country. Furthermore, it is the richest ...

  • Healthcare for the elderly in Portugal
    Healthcare for the elderly in Portugal

    Portugal is a popular destination for retirement for Europeans, in general, but also retirees from other ...

  • Student life in Lisbon
    Student life in Lisbon

    So, you have found the perfect university in Lisbon and got accepted. Congratulations! It's time to start ...

All of Portugal's guide articles