Renting out your property in Brazil while living abroad

An empty property in Brazil costs money every month — property tax, condominium fees, maintenance — and deteriorates faster than an occupied one. Renting it out is often the sensible choice for owners who moved abroad. The challenge is to keep control without being there.

Who will manage it

You can manage the property yourself through a relative, or hire a property manager (administradora de imóveis) or a real estate broker who offers management. A professional manager usually:

• advertises the property and screens candidates;
• prepares and signs the lease;
• records the property’s condition at the start and end of the lease;
• collects rent and transfers it to you, with a monthly statement;
• deals with repairs, the condominium and the tenant’s requests.

Ask how the manager reports to you, how fast transfers are made, what the fee covers, and who approves repair expenses. Get it all in a written contract.

The lease

Residential leases in Brazil follow the federal rental law (Lei do Inquilinato). A well-written lease defines rent, annual adjustment index, term, who pays which charges (usually the tenant pays condominium ordinary fees and utilities), the guarantee and the rules for returning the property.

Guarantees: choose one

The law lists types of rental guarantee, and as a rule a lease may use only one. The most common are:

• a guarantor (fiador), usually a property owner;
• a deposit (caução), with a legal limit;
• rental guarantee insurance (seguro-fiança), contracted with an insurer.

For an owner abroad, insurance tends to be the most practical, because it does not depend on chasing a guarantor from a distance. Compare costs and coverage.

The inspection report

The inspection report (vistoria) — with photos and descriptions — is your main protection when the tenant leaves. Without it, disputes about damage become a matter of opinion. Make sure it is thorough and signed by the tenant.

Collecting rent and handling problems

Agree on a calendar: when the tenant pays, when the manager transfers, when you receive the statement. Define what happens on the first day of delay. If the tenant stops paying, eviction in Brazil goes through the courts, and acting early matters — see when the tenant stops paying and you live abroad.

Tax on rental income

Rent from a property in Brazil is income generated in Brazil. When the owner is a non-resident for Brazilian tax purposes, the rules on how it is taxed and who withholds the tax are different from those for residents; the tenant or the manager may be responsible for the withholding. Your country of residence may also require you to declare the income. Talk to an accountant before the first payment, not after a year of rent.

Keep the bills in your name under control

Even with a tenant, some obligations stay with the owner. Make sure the manager confirms monthly that IPTU and condominium fees are paid, as these debts follow the property. See property tax and condominium fees while you live abroad.

A simple routine that works

1. Monthly statement from the manager: rent received, fees, expenses, net transfer.
2. Quarterly check: condominium and IPTU paid, any complaints.
3. Annual review: rent adjustment, maintenance plan, tax return.

Next step

If your property is empty, or the current management is not working, a short written plan can change that. Describe the property and the situation in the consultation form and you will receive a reply by e-mail.