If you are purchasing your new Portuguese property as a rental property, the first thing you will want to do is get it out on the market and start earning revenue. However, there are many legal and logistical steps that you will need to jump through before the money starts rolling in – especially as Portugal can be a very bureaucratic country.
The first thing you will need to consider is your Alojamento Local – the Portuguese letting licence. This is a legal requirement, and in order to receive this licence you will be inspected by the local camara (town hall), for adherence to local regulations.
We would definitely recommend hiring a local agency to manage this process for you – and they can then assist you with rentals, maintenance, cleaning etc. once the licence has been granted. It will usually cost you at least €600 for the arrangement of this, along with fees for anything you must add for compliance – such as health and safety signage, a first aid kit and an official complaints book.
Make sure that you research the company you choose thoroughly in advance – expat experiences on forums range from efficient companies who complete the process in less than six weeks, to rogue agencies that are unable to complete the process in over a year! Whatever happens, don’t be tempted to take tenants in until the process is complete – the fines are significant!
Once your property is ready to rent out, you will need to think about insurance. Many UK-based companies offer insurance for holiday lets, and you should use a trusted broker or compare a large number of quotes. Make sure your policy definitely covers you for renting out the property, and is not simply a holiday home policy. We can put you in touch with a company who specialise in insuring overseas property for holiday rentals.
Once you have received your license and purchased insurance, the next thing you need to do is list your property on the market - and hopefully make money from renting it out! There are a number of ways that you can do this, including listing on holiday home portals.