Economy

Panel SA: Lawsuit for non-payment of rent grows in São Paulo

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The volume of rental actions rose 16.5% in the city of São Paulo in March, according to a survey by Secovi-SP (housing union) based on data from the São Paulo Court of Justice.

In the month, 1,308 lawsuits were filed, almost 86% of which were motivated by non-payment of rent, according to the survey, which covers residential and commercial leases.

“There has been an increase in non-payment actions. In recent year-end closings, since 2018, the amount has been falling. From 2020 to 2021, non-payment in the year fell from 11,472 to 10,316”, says Jaques Bushatsky, director of legislation of the Secovi-SP tenancy.

The remainder is distributed among common shares related to property repossession, renovations or consignments due to disagreement of values.

The number of March this year also exceeds the level of the same month last year, which had 1,250 shares in the capital of São Paulo.

According to Bushatsky, one of the hypotheses to explain the rise is the timing of the pandemic. “Last March, there was still a doubt from people about whether to enter with eviction or not”, he says.

Another likely reason is economic difficulty, which may be hampering negotiations. “It’s one thing for me to trade when I know I’m going to make money next month. Another is for me not to have it next month. It complicates”, he says.

According to Bushatsky, the sample is small compared to the total universe of leases in the city, but it can serve as a thermometer of financial health, especially in the case of non-payment of rent on non-residential properties.

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