Whether you’re looking into purchasing a property that you want to rent out or already having an apartment, knowing the ins and outs of being a landlord can be demanding and often confusing. There are many different legal hurdles to jump through, things to consider when marketing your rental, and much more, which is why we put together this shortlist of some tips on renting out your apartment in Portugal.
Legalities of renting out an apartment in Portugal
There are many legal hurdles to consider when renting out an apartment. If you want to rent out your property to tourists, you need to have a licence called Alojamento Local. To obtain the permission, you have to provide the council with floorplans, proof of compliance with safety requirements, proof of first aid equipment, and much more. And after that, it may still take the council a lot of time to grant you the licence. Though the process is the most time consuming, it’s not complicated.
Suppose you’re unsure whether you have enough time or energy to go through it all alone. In that case, you can hire Portuguese companies that specialise in securing all the necessary paperwork for you. Another load of paperwork is the necessary tax declaration. The base income tax from renting out properties is 28%, which is pretty steep, but it can be cut down by various lengths of renting or by offsetting expenses against your income. Still, make sure to count on it in your decision making.
Marketing your rental in Portugal
Marketing is a skill like any other, and you’ll learn how to get better at it with time. To start, think about your target audience: who are they? What do they need? What do they look for in an apartment? Play into your strengths. If your apartment is in the city centre but is otherwise small, market it to tourists who won’t stay for large swathes of time, or perhaps to students who may be glad for the cosy atmosphere. If your apartment is far away but can house either a whole family or has good working conditions, market it towards remote workers or digital nomads.
These are just examples. Every apartment is different, so make sure to have a list of pros and cons of your apartment to have an easier time figuring out your target demographic. One thing needs to be said, though: the location of your apartment is always good. Don’t despair that you don’t have a better-situated home. Think instead about how it can help you sell it. More urban areas will be attractive to artists and students while coasts and nature might be more for tourists and backpackers. But none of these is hard and fast rules. Look at the location of your apartment carefully and see what’s nearby.
How to equip your rental in Portugal
Equipping your rental the right way can make all the difference. There are many small, dark apartments far away from the city centre that gets many tenants because they either look cosy or have all the necessities (and even comforts) that people look for. Again, your target demographic will help you here tremendously. Tourists may want to experience a more local-looking interior, while digital nomads and students will probably look for a more clean and functional style. Make sure you think about everyday practicalities: what could they need? What does their job require? Answering these questions will get you closer to being the perfect landlord.
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