Planning On Renting Your Property Out? This Is For You...

Hi there.

This has been a very strange time for me: a deathly hush suddenly fell over my flat recently. Yes, you’ve guessed it: I live in Fulham, directly on the flight path to Heathrow Airport! It really drew attention to the volume of noise that we have subconsciously adapted to and no longer consciously hear.

Having just recently experienced the vagaries of the BA strikes you would think that I would be a bit more sympathetic. Indeed, my heart does go out to all those very many people who have been inconvenienced, but I have to say that the silence was delightful!

Back to Portugal…I just wanted to point out a few things to you about renting out property there - a law was passed quite recently, only about a year ago, so you may not be aware of it. The purpose of the law is to make sure that homes that are let out meet all utility and structural requirements – after all, a safe and happy tourist is one that may well return!

Holiday accommodation in Portugal is now split into two main categories, classed as either an Empreendimento Turístico (tourist establishment), or an Estabelecimento de Alojamento Local (Local Lodging Establishment).

What does this mean?

Empreendimento Turístico or Tourist establishment
The following properties fall into this category:
- Conjuntos Turísticos - non residential complexes where the complex is solely used for tourism purposes and people cannot buy property
- Hotels
- Public campsites
- Other types of commercially owned establishments that provide temporary accommodation to paying guests such as guesthouses, apartment complexes, youth hostels and holiday villages
Estabelecimento de Alojamento Local or Local Lodging Establishment
A property must have an Alojamento Local licence if it meets all of these three criteria:
- It has a Licença de Habitabilidade (habitation licence), which is provided by the local authorities. It proves that the property has been inspected and meets the required legal standards for occupation.
- Any property built from 1951 onwards as a habitable dwelling must by law have a Licença de Habitabilidade. If the property was built before 1951, you must have a certificate from local authorities stating this. If a property built before 1951 is then renovated, an application for a Licença de Habitabilidade must be made.
- It provides temporary accommodation to paying guests
- It is not considered an Empreendimento Turístico (as above)
Private holiday home rentals will fall into this category. Properties with an Alojamento Local licence must:
- Be in good condition externally and internally
- Be connected either to mains water or a bore hole
- Be connected to mains sewer or a septic tank
- Have both hot and cold running water
- Have adequately furnished rooms
- Have sufficient ventilation
- Have blinds or curtains
- Have suitable locks on the outer doors
- Have at least one bathroom for every three bedrooms, with toilet, basin and a bath or shower
- Have sufficient fire extinguishers as well as first aid equipment
- Have instruction manuals for all appliances
- Display the international emergency phone number of 112 in a prominent position
- Have bed linen and towels changed at least once a week
- Have an official complaints book

To obtain a licence you will need to submit an application at your local town hall. They may arrange an inspection trip to ensure that all is as it should be at your property. Once they have authorised your licence you automatically have permission to rent your property out.

Remember, if you are thinking of recouping some of the cost of the property by letting it out, you need to make very sure that it conforms to the licence requirements BEFORE you sign on the dotted line. That, or be aware of the changes that the property needs to bring it up to scratch – and the accompanying costs.

Depending on who you are buying the property through, they should be able to assist you with this plus advise you as to how to get the licence. In fact, it would be quite a good test of the estate agent’s service ethic to find out in advance if they are prepared to help you with this. I hope this helps – do let me know if you have had any experiences with this won’t you? Have a good week and take care!

Carol Dunning
http://portugalbuyingguide.com