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Real Estate
Opinion article · 25 Jun 2026

Urban leases: clauses that protect the landlord

Frequently overlooked contract clauses that reduce the risk of default.

The contract as the first line of defense

Clauses on bank guarantees, rent updates, and termination for repeated default — the latter based on Article 1083 of the Civil Code — are often copied from generic templates, without adaptation to the specific situation of the property or the tenant. A contract reviewed and tailored to the case significantly reduces the risk of litigation in the event of default.

Beyond the bank guarantee

Clauses on sublettingThe tenant’s transfer of the use of the leased property to a third party, in whole or in part, generally subject to the landlord’s authorization., unauthorized works, and objective criteria for the property’s condition upon return are frequently omitted, and these are precisely the ones that generate the most disputes at the end of the contract.

These clauses become even more important in light of the proposed 2026 urban lease reform, which changes the conditions for terminating the contract and the initial rent amount in new leases.

© 2026 Horacio Baptista Ladera. All rights reserved. Reproduction prohibited without prior authorization.

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Landlords and tenants in Porto face these same clauses; see the support available in Porto.

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