Brazil rental law alerts and IGP-M rent rise impact tenants

Tenants across Brazil are being warned to scrutinise rental contracts after recent clarifications of the Lei do Inquilinato. Although no new federal law took effect in 2026, the existing 1991 law still governs lease terms. Key points highlighted include the need for clear disclosure of monthly rent, condominium fees, IPTU, and other charges; a minimum one‑year interval for rent adjustments; limits on guarantees—only one type may be required, with cash deposits capped at three months’ rent; and proper documentation of property condition at handover.

In August, rents indexed to the IGP‑M are set to rise by 2.76%, translating to an increase of roughly R$55 on a R$2,000 lease. The IGP‑M fell in July due to lower fuel prices and reduced geopolitical tensions between the United States and Iran, as noted by FGV economist Matheus Dias. Tenants with contracts tied to the IGP‑M should expect the adjustment at the next contract anniversary.