In a context of high tension in the rental market, Law 12/2023, known as the Law for the Right to Housing, has introduced relevant changes to guarantee greater residential stability. This regulation strengthens tenant protection and establishes their rights in the leasing market.
One of the most notable modifications is the obligation to extend rental contracts. Law 12/2023 modifies the Urban Leases Law (LAU), establishing that if the contract duration is less than five years (or seven years if the landlord is a legal entity), the contract is automatically extended for annual periods until this minimum duration is reached.
The law establishes that, in contracts with a duration equal to or greater than the minimum terms, if neither party communicates their intention not to renew, the contract will be automatically extended for up to three more years.
This means the tenant has the right to continue living in the property during this minimum period, provided they are up to date with payments and comply with the contractual conditions. Regarding non-renewal communication, the landlord must notify at least four months in advance, and the tenant two months.
If the landlord alleges the need not to renew, for example, to carry out works that prevent the normal use of the dwelling, they must duly accredit the causes and detail the scope of the reforms, their estimated duration, and how they will affect the tenant's daily life. This legislation clearly strengthens the position of tenants, offering them greater stability and legal security.
