What rent adjustment is permitted by law? 

What rent adjustments are permitted by law is a question that always arises for those who choose to rent a property. 

This is because it is common knowledge that the value increases annually, but to what extent is this permitted?

Do you know how to identify when an increase is abusive? 

If your answer is no, there is no need to worry, because today we will help you with this question.

That said, to learn everything about rent increases, check out the content we've prepared for you! 

Why does rent increase? What rent adjustment is legally permitted?

Finding a property to rent is a task that involves a lot of effort.

This is because there are a series of criteria that must be evaluated when choosing a location.

The property's location, design and architecture, and especially its value, are the main points to consider.

And true happiness occurs when you find an option that meets all the requirements and is affordable.

However, this happiness can be interrupted when you know that the agreed value will not last for long.

And this is the change we call a rent increase.

But why does the rent increase? Can't we just keep it the same? 

That would be a real dream, but unfortunately we must say that no, it is not possible to maintain the same value.

The reasons for the need for an increase are varied.

In general, they involve inflation and appreciation of the property, neighborhood and region in which it is located.

We must consider that rent is a source of income for many people.

And just as wages must be adjusted annually to keep pace with rising prices in the country, the same goes for rent.

When it comes to property appreciation, the rental cost should follow this point.

This is because, with the appreciation of the region and the property itself, costs such as IPTU also increase.

Therefore, the rent increase also serves to help the owner maintain the property.

However, it is important to know what rent adjustment is permitted by law.

This helps to avoid excessive charges, which only benefits the owner. 

What rent adjustment is permitted by law?

As we have seen, charging for an increase is necessary, but it is important that it is in accordance with what is fair.

This means that it is essential to know what rent adjustment is permitted by law.

The first thing you need to know is that this adjustment is provided for by lei of tenancy (Law no. 8245/81).

This law does not establish a specific value, nor does it stipulate any minimum or maximum percentage of adjustment.

However, the law specifies two important points that guide this adjustment.

The first is that the adjustment cannot be requested before 1 (one) year of the rental agreement.

Therefore, the adjustment must be made on each contract anniversary, that is, once a year.

Another important point is that the adjustment must follow the country's inflation.

This aims to ensure a real adjustment that has a true economic effect.

Additionally, the owner must choose an index to calculate this increase. Possible indexes are: 

• IGP-M (General Market Price Index) FGV
• INPC (National Consumer Price Index) IBGE 
• CPI (Consumer Price Index) FIPE 
• IPCA (Broad Consumer Price Index) IBGE

It is important to note that the landlord can choose any of these indexes.

Furthermore, the index in question must be stipulated in the contract, as well as the adjustment dates.

Abusive increase: what to do? 

In the previous topic, we were able to understand which rent adjustment is permitted by law.

We saw that there is no stipulated value, but rather rules that guide this increase.

Therefore, for the charge to be legalized, it must follow and respect the determined criteria.

However, it is known that in many cases these criteria are not respected.

In this way, property owners end up determining the value that suits them for an increase.

In this case, it constitutes an abusive charge, which goes against the Tenancy Law.

The main measure to take in this case is to refuse to pay the required increase.

It is essential that you take the signed contract and present the agreed terms to the owner.

If he refuses, you have two options:

1. Leaving the property without paying a fine, as the owner refuses to comply with the terms of the contract. 
2. Legally demand compliance with the agreed rules. 

It's worth mentioning that the best idea is always to talk, as it ensures a good relationship with the owner.

However, if the contractual provisions are not met, measures must be taken.

This is because, even though the owner has authority over his property, as soon as he signs a lease, the tenant must be respected. 

Another important point is that the adjustment period cannot be modified either.

This means that you should not accept more than one adjustment in a year. 

So, keep an eye on these points to avoid being charged excessive amounts and frequency.

Tips for negotiating a smaller adjustment

At this point, you already know the adjustment amount allowed by law, and we can discuss some ideas to make this adjustment more lenient.

This is because, even though the adjustment is foreseen, we saw that there is no minimum percentage.

Therefore, some practices can help you achieve a more attractive percentage.

It is worth mentioning that the tips are for negotiation purposes, that is, there is no obligation on the part of the owner to accept.

But, in any case, it doesn't hurt to try, as it can help you save a little in the coming years.

1. Be sure to consider the rent adjustment permitted by law. 

The first point to note is that your negotiation attempt should not completely deviate from the legally permitted indices.

This is because, if the owner is proposing something within the expected range, there is no room for negotiation.

Therefore, refusing to pay the adjustment will not work.

Remember: being flexible and fair is good for both parties! 

2. Keep in mind that rent adjustment is necessary

There are people who try to negotiate considering only their own needs.

But, as already mentioned, the rent adjustment serves to balance the owner's accounts.

So, when submitting a proposal, consider not asking for excessive discounts.

Besides, there's no point in wanting something that only benefits you.

Find a middle ground, and it will be much easier to get a discount! 

3. Invest in good relationships 

It may seem obvious, but not everyone invests in a good relationship with the landlord.

Besides being the basis for respect and politeness, it can also help you when negotiating a raise.

This is because landlords look for trustworthy tenants who won't cause problems.

So, if he notices that you have this profile, he may consider a softer raise.  

4. Add value to the property 

Another tactic many people use to get discounts on rent is property appreciation.

This is because care for the place is highly regarded by some owners.

Therefore, by taking care of and adding value to the property, the owner may want to reciprocate in some way.

So, your care can help you negotiate a smaller adjustment! 

5. Show that you intend to stay for a long period 

And finally, another thing that can help you is demonstrating that you intend to rent the property for a long period.

This helps because some landlords prefer long-term contracts because it avoids having to look for new tenants.

So, present your intentions to the owner, and they may consider giving you a discount on the adjustment, due to the guaranteed stay.

But be honest, don't promise something you don't intend to keep, as respect must be shown to both parties. 

So, now that you know the legally permitted rent adjustment amount, check your contract and negotiate with your landlord!