New Rental Laws Affect Algarve & Portugal Property Management

December 30th, 2010 by admin Leave a reply »

If you are looking for ways to make money from your property in Portugal and have weighed up the possibilities of letting your property to holiday makers, your first course of action must be to obtain a commercial letting license from local authorities. This license is known as “Alojamento Local”.

Recently, the government of Portugal tightened the laws surrounding property rentals in an attempt to improve the quality of accommodation serving domestic tourism.

Initial efforts by the Portuguese government to bring the rental market in Portugal under control were, at best, unclear and many owners and property management companies were not able to understand the legal amendments actioned. Largely because of this, the changes have now been simplified and fines for non-compliance are currently being served on property owners and management companies renting non-licensed real estate in Portugal.

Financial penalties can be considerable ranging between 2,500 and 25,000 Euros. Pennsylvania foundation repair . Any property owner who wants to rent their property must, therefore, act promptly and apply for the new rental license before embarking on any rental program.

Before any property can be considered suitable for public rental there are a number of prerequisites that need to be met. The property must be in good condition and not be unsafe or in a state of ill repair. Property must have a fresh, hot and cold running water supply and be connected to either a septic tank or mains sewage. Car Insurance For 1 Day . The rental property must exhibit adequate furnishing, have good ventilation and be fitted with devices such as shutters or blinds to prevent light entering the building. The property must also reach adequate security levels with locking doors and have a bathroom for every three bedrooms. In accordance with legal definition, a bathroom must contain one toilet, a sink and a shower or bath.

All potential rental properties must be inspected by a state approved electrician and gas technician; each will furnish the would be landlord or landlady (or their agent) with a certificate confirming that the building is good for rental and meets detailed standards with respect to the afore-mentioned utilities. Bathroom Remodeling Willow Grove PA . In addition the local Fire Dept. will be required to conduct an inspection to demonstrate that the building meets fire safety regulations.

Additional laws relate to the safety of the property. A property must display, prominently, emergency service numbers and information. There also has to be an adequate number of fire blankets and extinguishers for the size of the building and all appliances for the use of guests must have proper instructions. If a property provides in excess of 50 beds, it must be fitted with a dedicated fire alarm and telephone line and the property owner will need to hand in an additional fire safety approval upon application.

On the subject of hygiene, a proposed rental property must offer a laundry service that delivers clean linen at leat once in every seven days.

A complaints book for tenants or guests is required under the new legislation and complaints will need to be directed to the relevant authorities.

Once you are ready to apply for Alojamento Local, you will need to hand in your application, along with supporting documentation to the local council responsible for the district in which your building resides. Additional paperwork includes: acceptable identification, the habitation license issued for your property, certificates provided by the inspecting gas, electrical and fire officials, a plan of the property and the associated tax documentation for letting property in Portugal.

The process of applying for a commercial rental license for a property in Portugal can be difficult and time consuming. Factor in the fact that most government departments will expect you to speak in Portuguese when applying and it may be worth considering authorising a local agent to apply on your behalf.

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