The pros and cons of renting a property in Portugal.
When moving to Portugal, most people choose to rent before purchasing a property, as the lease is transitory, involves a smaller investment and allows you to explore the area and even the country, thus being able to decide with more confidence where you prefer to install- if.
The rental market in Portugal
The national average rent in Portugal is currently around €10.90/m2 – the Lisbon metropolitan area is the only one where the average is above this.
Among the most expensive areas to rent in Portugal are Porto, Algarve, Madeira Island and Setúbal. Obviously, these are the most sought after areas to rent in Portugal, as they combine the advantages of living by the coast even within urban cities, job offers and more infrastructure.
On the other hand, as Portugal is a small country, you can find cheaper property in the interior of Portugal and still have access to our beautiful beaches within a 2-3 hour drive. The Portuguese market has offers suited to most needs and preferences.
Finding a property to rent: online vs on-site
When deciding to move to Portugal, even before travelling, you can start your research process online, directly on the Agencies websites or through tools such as Idealista or Imovirtual, which normally combine private and Agency advertisements.
This survey is useful for getting to know the Portuguese rental market and the type of properties available in different areas.
Also, if you don't (yet) speak Portuguese, it will be easier to communicate, as realtors usually speak English, they know the market and can also facilitate communication with the owner, especially when negotiating the terms of the contract. .
You can also choose to look for a property to rent directly with the Lessor, walking around the chosen location, asking the residents, or even consulting the “Rent/Rent” advertisements on the properties.
It's harder and less efficient. However, you will be discovering the area, you will be able to visit the property immediately and you may find a good opportunity.
Unfortunately, for this alternative, it may be necessary to have a good knowledge of the Portuguese language, especially in more inland areas, as not all Portuguese speak fluent English.
You will find people with solid English skills mainly in cities and tourist areas and services such as restaurants.
In addition, the Portuguese are known to be very welcoming and, even when we don't speak English, we will certainly do our best to understand and be understood.
Rental process and required documents
Once the first stage has been concluded – the choice of property –, it is time to negotiate the conditions and draw up the lease agreement (Contrato de Arrendamento).
It is highly recommended to have legal assistance. The lease contract must be a written contract containing all the agreed conditions, as well as proof of the tenant's right to reside in the property and proof of address for official entities in Portugal.
How the rent is paid
In Portugal, the rent is fixed and paid monthly, and it is very common to pay at least two months rent in advance.
Some landlords may request a higher advance from foreign tenants, as they do not have proof of income or guarantors in Portugal. However, the legal limit is three months rent in advance.
Rent in Portugal will be paid on the first day of each month; however, the tenant is not found guilty until the eighth day of the month.
Deposits
At the beginning of the contract, it is also common to request the payment of a deposit in the amount corresponding to one month's rent.
Sometimes the landlord asks for a higher deposit amount, especially if the monthly rent is not too high. This serves as a guarantee for the payment of repairs that may be necessary.
This deposit will be returned to the tenant at the end of the lease, provided the property is in good condition.
The rental agreement
According to Portuguese law, the rental contract for housing must have a minimum duration of 1 year, although the tenant can terminate it earlier.
If all parties agree, the lease agreement can be automatically renewed.
Other conditions must be defined, such as who is responsible for paying the bills and whether any furniture is included in the rental of the property. Typically, the landlord is responsible for paying the condo fees.
It is mandatory that the tenant has a Portuguese taxpayer number, commonly known as “NIF” (even if not a resident), so that the landlord can register the lease with the Portuguese Tax Authorities and issue the respective monthly rent receipts.
It's a good idea to check the title documents to make sure the landlord is the rightful owner of the property!
Once the rental conditions have been determined, the parties can sign the contract. Then the owner hands over the keys and the tenant pays the established amounts.
Before signing, organize a joint inspection of the property, to see what condition it is in and if there are any defects so that the owner cannot attribute them to you in the future.
Termination of the lease
The lease agreement may be terminated due to the following:
Its duration elapses;
The landlord terminates or does not want to renew it;
The tenant terminates or does not want to renew it;
Both parties reach a termination agreement.
As for scenarios 2 and 3, the party wishing to terminate the contract must give advance notice.
When the lease is terminated, make sure you and the landlord carry out a joint inspection of the property to confirm its condition and condition.
It's a good idea to do this with a written report, including photographic evidence, signed by both parties, to avoid problems with returning the deposit amount.
If the property is in the same conditions in which it was rented, the lessor must fully return the deposit to the lessee. In case some repairs are needed, the proportionate amount will be deducted from the deposit.
It is a common situation for tenants not to pay the last rent, allocating the deposit amount for this purpose, however, it is not advisable to do so without prior agreement with the landlord.
Unfortunately, in Portugal, lease issues are often taken to court because there are several situations that are not prevented in the lease contract and lead to disagreements between the parties.
However, if the lease agreement complies with Portuguese law and the relationship with the landlord is well managed and trusting from the start, you will certainly manage to avoid complications.