New Rental Laws Affect Algarve & Portugal Property Management

If you are looking for ways to make moneyby a state approved electrician and gas technician;
from your property in Portugal and have weighedeach will furnish the would be landlord or landlady
up the possibilities of letting your property to(or their agent) with a certificate confirming that
holiday makers, your first course of action mustthe building is good for rental and meets detailed
be to obtain a commercial letting license from localstandards with respect to the afore-mentioned
authorities. This license is known as "Alojamentoutilities. In addition the local Fire Dept. will be
Local".required to conduct an inspection to demonstrate
Recently, the government of Portugal tightenedthat the building meets fire safety regulations.
the laws surrounding property rentals in anAdditional laws relate to the safety of the
attempt to improve the quality of accommodationproperty. A property must display, prominently,
serving domestic tourism.emergency service numbers and information.
Initial efforts by the Portuguese government toThere also has to be an adequate number of fire
bring the rental market in Portugal under controlblankets and extinguishers for the size of the
were, at best, unclear and many owners andbuilding and all appliances for the use of guests
property management companies were not ablemust have proper instructions. If a property
to understand the legal amendments actioned.provides in excess of 50 beds, it must be fitted
Largely because of this, the changes have nowwith a dedicated fire alarm and telephone line and
been simplified and fines for non-compliance arethe property owner will need to hand in an
currently being served on property owners andadditional fire safety approval upon application.
management companies renting non-licensed realOn the subject of hygiene, a proposed rental
estate in Portugal.property must offer a laundry service that
Financial penalties can be considerable rangingdelivers clean linen at leat once in every seven
between 2,500 and 25,000 Euros. Any propertydays.
owner who wants to rent their property must,A complaints book for tenants or guests is
therefore, act promptly and apply for the newrequired under the new legislation and complaints
rental license before embarking on any rentalwill need to be directed to the relevant authorities.
program.Once you are ready to apply for Alojamento
Before any property can be considered suitableLocal, you will need to hand in your application,
for public rental there are a number ofalong with supporting documentation to the local
prerequisites that need to be met. The propertycouncil responsible for the district in which your
must be in good condition and not be unsafe or inbuilding resides. Additional paperwork includes:
a state of ill repair. Property must have a fresh,acceptable identification, the habitation license
hot and cold running water supply and beissued for your property, certificates provided by
connected to either a septic tank or mainsthe inspecting gas, electrical and fire officials, a
sewage. The rental property must exhibitplan of the property and the associated tax
adequate furnishing, have good ventilation and bedocumentation for letting property in Portugal.
fitted with devices such as shutters or blinds toThe process of applying for a commercial rental
prevent light entering the building. The propertylicense for a property in Portugal can be difficult
must also reach adequate security levels withand time consuming. Factor in the fact that most
locking doors and have a bathroom for everygovernment departments will expect you to
three bedrooms. In accordance with legalspeak in Portuguese when applying and it may be
definition, a bathroom must contain one toilet, aworth considering authorising a local agent to
sink and a shower or bath.apply on your behalf.
All potential rental properties must be inspected