Renting property in Portugal can be an excellent option while you are looking for a property to buy or if you need to be more flexible.
What Kind of Rental Properties Can I Find in Portugal?
Portugal rental homes include everything from villas and townhouses to city apartments and suburban townhouses, but it can be difficult to find long term rentals unless you use a good estate agency. In Portugal, property to rent isn’t as common as property for sale, since most people own their own homes. Shorter term rentals and holiday lets are relatively common, particularly in the Algarve and other coastal areas, where it can be difficult to find leases for more than a year. Elsewhere, longer term contracts are more common, with many agreements starting at one to five years.
Most expats choose to buy rather than to rent property in Portugal, but rentals are available, particularly in resort areas. Many of the developments in the Algarve and along the coast offer rental properties. You can also find many options for renting in cities like Lisbon. Long term rentals can be a good option for expats as the terms of the contracts for Portugal rental properties tend to favour the tenant.
Portugal Property Prices
Rents are higher in big cities like Lisbon and in resort areas, particularly for short term rentals in the summer months. While the Algarve is one of the most expensive places in Europe for holiday home rentals, other parts of Portugal offer very affordable rentals with apartments starting at under €400 a month. In general, people spend between a third and a half of the average Portuguese salary on rent, but prices can be higher than this in the most sought after areas.
Costs of Renting Property in Portugal
The deposit is the main cost to be aware of when you rent a property in Portugal. You will usually need to provide a deposit of at least one months rent, with each months rent payable in advance on the first of the month. You may also be asked for a security deposit. Shorter term rentals may include utilities in the rent, but they are rarely covered when you agree to a longer term rental.
Process of Renting a Property in Portugal
Finding the right Portugal property for rent is easier with a good estate agency. Winkworth International can locate suitable properties and advise you on your rental contract. The agency will also be able to arrange viewings, which are essential when you are choosing Portugal real estate for rent.
Renting a property in Portugal can seem informal compared to other countries. You won’t often be asked for references or a credit check outside of the major cities. We strongly recommend that your landlord has a rental license and that you sign a contract known as the Contrato de Arrendamento. The contract protects your rights and specifies terms such as the length of the lease, when the rent will be reviewed, and how much notice you need to give before you move out. You will also need to obtain a Personal Fiscal Number from the local tax office or through a Portuguese bank before you sign.
If you are considering renting a property in Portugal or you would like further information on the process, please contact us. We would be pleased to answer your questions and assist you in finding a dream rental home in Portugal.