Brazilian tenancy law: a practical guide
A map of Law 8,245/1991 organised by question — indexation, penalty, security, holding over, renewal and eviction — with the calculator for each subject.
5,0 · 18 Google reviewsUrban tenancies in Brazil are governed by Law 8,245/1991, the Tenancy Act. Almost every question is answered by three facts from your lease: whether it is residential or commercial, whether it is written and for how long, and which security was agreed (art. 37). This guide sorts the answers by question.
What you are trying to solve.
- The tenant is not payingThe landlord's claim to recover the property is an eviction claim (art. 5), which can carry the debt claim. See eviction.
- I want to leave before the endHanding the property back early means paying the agreed penalty, proportional to the part of the term performed (art. 4). Use the penalty calculator.
- How much can rent go upRent is freely agreed, though it may not be stipulated in foreign currency (art. 17). The index is the one in the lease — see the rent adjustment calculator.
- The rent is out of line with the marketFailing agreement, a judicial review is available after three years of the lease or of the previous agreement (art. 19).
- I run a business at the premisesRenewal requires a written lease, a five-year minimum term and three years in the same line of business (art. 51). Check the window in the deadline calculator.
- Which security to requireDeposit, guarantor, rent-guarantee insurance or an assignment of fund units — only one per lease, on pain of nullity (art. 37).
- Who pays whatExtraordinary service charges fall on the landlord, ordinary running costs on the tenant (arts. 22 and 23).
- The term expired and nobody said anythingHolding over has its own rule, different for terms of 30 months or more and for shorter ones (arts. 46 and 47).
Indexation, penalty and rent review.
Indexation is contractual, not statutory: the Act leaves rent to free agreement, prohibiting stipulation in foreign currency and linkage to exchange rates or the minimum wage (art. 17). The index — IGP-M, IPCA, INPC — is whichever the lease names. The rent adjustment calculator shows what each does to your figure.
The early-exit penalty causes the most argument. Handing the property back before the agreed term, the tenant pays the agreed penalty proportionally to the part of the term performed or, failing such a clause, whatever the court fixes (art. 4). The closer to the end, the smaller the sum — run it through the penalty calculator.
The rent review exists for when the rent has drifted from the market. Failing agreement, it can be brought after three years of the lease or of the previous agreement (art. 19); where the landlord brings it, the court may fix a provisional rent of up to 80% of the sum sought (art. 68). It is a tool for the party with a valuation.
One warning covers all three: clauses designed to defeat the purposes of the Act are void, in particular those forbidding renewal of the term or removing the right to renewal (art. 45). A signed clause is not automatically a valid one.
What happens at each stage of the lease.
- Signature and securityA single form of security is chosen (art. 37); a cash deposit may not exceed three months' rent (art. 38) and the security runs until the property is handed back (art. 39).
- During the termIndexation by the contractual index, judicial review from three years, and running costs split between the parties (arts. 19, 22 and 23).
- End of term, residentialOn a written lease of 30 months or more, the tenancy ends when the term expires, with no notice needed; if the tenant stays on more than 30 days unopposed, it continues for an indefinite term (art. 46).
- End of term, commercialOnce a fixed-term commercial lease ends, the landlord may terminate on 30 days' notice (art. 57) — unless compulsory renewal applies (art. 51).
- Recovering the propertyThe route is an eviction claim (art. 5). After judgment the period to vacate is 30 days, cut to 15 in the cases in art. 63.
Where to read on.
The tenancy calculators and the practice pages
Every calculator runs in your browser and shows the result on screen, without asking for your details.
Informational content under Brazilian Bar Association Rule 205/2021 — it does not replace an assessment of your case. Checked against Law 8,245/1991 as published by the Presidency of the Republic.
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Who leads this area.
Founding partner at Falchet e Marques (OAB/SP 428.777). Postgraduate in Real Estate Law (PUC/SP) and Succession Law (PUC-Campinas), she leads the real estate practice and probate matters. She explains every step before the client decides.
Meet Letícia MarquesCommon questions.
Can I require a guarantor and rent insurance at the same time?
No. Art. 37 lists the permitted forms of security — deposit, guarantor, rent-guarantee insurance and fiduciary assignment of fund units — and the sole paragraph prohibits, on pain of nullity, more than one of them in the same lease. A cash deposit may not exceed three months' rent (art. 38).
I left before the end of the term. Do I pay the whole penalty?
No. The penalty is proportional to the part of the term performed: handing the property back early, the tenant pays the agreed penalty proportionally or, failing such a clause, whatever the court fixes (art. 4). The penalty calculator sets the arithmetic out step by step.
How often can the rent be reviewed?
Failing agreement, either party may seek a judicial review of the rent after three years of the lease or of the previous agreement (art. 19). Before that, what exists is indexation by the index named in the lease — a different thing from reviewing the level of the rent.
The term expired and the tenant is still there. What now?
On a written residential lease of 30 months or more, the tenancy ends when the term expires, with no notice required; if the tenant stays on more than 30 days unopposed, it continues for an indefinite term (art. 46). On shorter terms, holding over is automatic (art. 47).
What does advice on a lease cost?
Fees are agreed in writing before any step is taken and vary with the scope — reviewing the lease, drafting a new one, serving notice or litigating. Court costs, where proceedings are needed, run on the value of the claim. The proposal follows the review, in writing.
Do you act outside São Paulo?
Yes. The Tenancy Act is federal and applies throughout Brazil; claims run in the forum where the property sits, and we handle proceedings elsewhere with local agents under our instruction.
Question not covered here?
Send the lease and describe the situation. We will say which article of the Tenancy Act applies and what the route is, with a proposal in writing where there is work to be done.