Going to University: What should be included in a lease contract?

Are you still looking for a property or financing to support all expenses? The real estate agency Casa no Minuto and credit intermediaries Poupança no Minuto are available to help you with any process. To understand the structure of a lease agreement, we explain next.

What is a lease agreement?

A lease agreement is a document that determines the rights and responsibilities of a tenant and a landlord. The objective is to safeguard both parties, so it is important to be informed about what should be stipulated in the various clauses.  

If you are going to enter into a residential lease agreement, you should know its characteristics before signing it, so you can review it. This is to protect yourself and not let them deceive you.  

Therefore, know your rights as a tenant and what should be stipulated in the contract in question.

First, know the documents you have to deliver.

In order to draft the contract, it is necessary to have recorded in the contract the information regarding the owner of the house, the tenant who will inhabit it, and the property itself.

Know that, in order to identify you, the landlord will require you to submit a copy of your identity card, and proof of your last pay stubs and last IRS statement. No further documents are needed for the composition of the contract, at the tenant level.  

However, the property owner must also provide documentation that identifies them and the property. Regarding ownership, the following documents are required:  

• Property notebook
• Energy certificate;
• Certificate of content;  
• Housing license.

This is all the paperwork that must be gathered in order to proceed with a rental contract, but it is also possible to have a Promise of Lease Contract beforehand. This precedes the actual contract signing to ensure both parties' intention to sign the rental contract.

But after all, what should be included in the contract?

So, what are the elements that should appear in the lease agreement clauses? Pay attention to the following:  

• First, both parties must be identified, including birth dates, place of birth, and marital status;  
• After, the exact address of the property to be leased;  
• The number and date of the occupancy permit must also be included. 
• The amount of the monthly income, the update regime, and the day of the month by which it must be paid (usually by the 8th of each month).
• The date on which the contract is being signed; 
• Discrimination of areas that can be designated for the tenant's private use, common use, and possible attachments;  
• The deadline and duration of the contract;
• If necessary, the condominium regulations.

Pay attention to the following: if there are unresolved issues in any clause of the lease contract, they should be governed by the decree-law of the New Urban Lease Regime. Therefore, if you have any more specific questions that need to be agreed upon, they should be recorded in the contract.  

And finally, remember that the contract only becomes valid if all the parties involved sign it. Including guarantors. Yes, it is also possible in this type of contract...

How does having a guarantor work in the lease contract? 

Having a guarantor in the lease agreement serves the same purpose as in a loan: to protect the tenant in case of not being able to pay the rent.

This may be optional or required by the landlord, if he assesses that the tenant is at risk of not being able to pay the rent.

In other words, if the tenant fails to make the payment, the guarantor must assume the responsibility to proceed with its settlement.  

If there is a guarantor, they must be indicated and identified in the contract, through the submission of the same documentation: citizen card, latest pay stubs, and last IRS statement.  

And after signing the contract?

After signing the residential lease agreement, each party should keep one copy and the other should be reported to the Tax Authority.

The landlord is obliged to submit the contract to the IRS within 30 days, signed by all parties involved, either in person at a counter or online. 

This is so that you can later proceed with the payment of the Stamp Duty related to the contract, which represents 10% of the monthly rent value. Please note that the landlord must settle this tax within a maximum of 30 days after the start of the lease.

Are you still looking for a property to rent near the University? Casa no Minuto can help you! And if you are struggling with the payment of all the expenses that this phase of life entails, Poupança no Minuto can also assist you with financing requests to banks.