Brazil Rental Law Reform Raises Alerts for Tenants and Landlords

Recent amendments to Brazil's urban lease law require rental contracts to be explicit about key terms. Agreements must detail the rent amount, any additional charges such as condominium fees, IPTU, and the index used for annual adjustments, typically IPCA or IGP‑M.

The law also limits landlords to a single guarantee per contract, prohibiting the simultaneous use of multiple forms such as a guarantor, cash deposit, and insurance. Early‑termination penalties must be proportional to the remaining lease period, and responsibility for repairs is split: tenants handle everyday wear, while landlords address structural defects.

These changes aim to reduce disputes, give tenants clearer protection, and help landlords more easily enforce their rights in cases of default.