Tenancy Agreement

Hi Rick,

Actually in a 30 month rental contract law permits increase in the rent every year. As you've got a 36 month contract then your landlord could have legally increased the rent twice before now (13th and 25th month).

I'm not sure what rents are like in Recife, but if they're like any other state capital they've been going up constantly, so if you've already escaped 2 rent increase you're extremely fortunate indeed.

If you stay it will be a completely new contract as you suspect, and essentially anything goes. That said in most places rent increases run in the range of 10%, so you should have counted on an increase of R$50 each time. First increase to R$500, second to R$550, and given that your rent really shouldn't be much more than R$600. Despite the fact that anything goes raising the rent to R$800 really seems excessive.

If you really want to stay where you are, then having a frank conversation with the landlord won't cost you anything and you've really got nothing to lose. The approach I would take, if it were me, is to point out to the landlord that you've been a good tenant, paid your rent in full and on time for three years. Remind him that in a time of financial crisis he/she won't likely find someone to pay R$800 per month very easily, and that you certainly can't pay that much either. Acknowledge the fact that you are well aware that he/she did not raise the rent on each anniversary date as the law permits and that you are truly thankful for that. Acknowledge that has saved you money and that had he/she done so the rent would be R$600. Suggest that due to not having increased the rent and what that has saved you, that you'd be willing to sign a new contract for R$650 per month. Really that is a bargain considering what you really have saved over the past 36 months.

If you really want to stay there, I'd consider this a win-win situation. If your landlord is a reasonable person, and wants to keep a good tenant rather than risk ending up with a vacant property and/or a bad tenant the landlord should agree. If you put it to the landlord in the way I've suggested my bet is that he/she will. If not, you've given it your best shot and you can start looking for something else you can afford.

Cheers,
James
expat.com Experts Team

Thanks James , i forgot to say it had actually gone up each year about  rs 40 , Wait and see what he comes up with  and i,ll let you know in a few days , I know for a fact they have 2 empty properties out of 6 , empty because they are to expensive ,,,,, they are overpriced  because i have checked !