The ceiling imposed by the previous executive is not being monitored and, according to Público, there are several reports of rents being increased above the law.
The rent for new property contracts that have already been on the market in the previous five years can only be a maximum of 2% higher than the previous rent. The rule was implemented by the previous executive but, as there is no supervision, the ceiling is being exceeded by several landlords, says Público.
Associations and movements for the right to housing receive reports of increases well above 2%. Information confirmed by those responsible for the Lisbon Tenants Association (AIL), who say that failure to comply with the limit is “the norm, not the exception”.
The Portuguese Association for Consumer Protection (Deco) also received complaints.
The newspaper, which also interviewed tenants, states that in some cases landlords communicate the original value of the rent for tax purposes but tenants charge the difference.
The legal limit of 2% does not apply when income does not exceed the maximum values defined in the Affordable Rental Program (PAA). In properties that have been proven to have undergone extensive remodeling or restoration, the increase can also reach 15%.
