RENTING
Renting a property in Portugal is an exciting first step in getting to know the country and deciding where you want to build your new life. We understand that it can be nerve-wracking, but don't let that put you off; as your Buyer's Agent, the Kuabit team has helped people buy and rent real estate in the Algarve, Cascais, Sintra, and Lisbon.
We have the experience, expertise, and contacts to guide you through both the buying process and renting process, as well as assist with securing a mortgage if necessary, helping you every step of the way.
Suppose you are looking to immigrate to Portugal; our partnered immigration lawyers can guide you through the entire process, select the correct visa type, and prepare & file the necessary paperwork with the immigration authorities.
The guide below will prepare you to get ready with the required paperwork, know what to expect, and rent a property hassle-free.
WORKING WITH A RENTAL AGENT VS HUNTING PROPERTY ALONE
If you choose to search for rental properties by yourself, get ready to clear your schedule for the next few weeks. You’ll likely spend hours browsing listings, reaching out to agencies that may not respond as quickly as you'd like, and arranging viewings with different agencies, each with its own schedules, preferences, and constant push to show you more properties from their portfolio.
In the end, you’ll be the one managing all the logistics and coordination. There's no guarantee you’ll find what you’re looking for. You could end up wasting your time viewing several properties, only to realize that none of them are in the neighborhood you desired.
It’s also common to find listings with inaccurate locations, often posted to grab attention. The advertised services, public transport options, and amenities might not be as close as stated.
By working with an experienced Buyer's Agent, you’ll save both time and money. They’ll only show you properties that meet your needs, making sure you get value for your time.
At Kuabit Realty, our agents will curate a list of properties based on your criteria, help you avoid potential scams, and assist you throughout the buying process, including connecting you with mortgage specialists if needed. They’ll also negotiate deals with terms that work for you, ensuring happy clients every step of the way.
Another advantage of partnering with a knowledgeable agent is their ability to connect you with local professionals, such as lawyers, moving companies, assist with transferring utility bills to your name, or even help you find a cleaner. This kind of support can be especially helpful if you’re new to town.
FURNISHED AND UNFURNISHED PROPERTIES
In Portugal, rental properties are usually listed with a monthly price, and the size mentioned typically refers to the living space or the total area in square meters.
Listings often indicate whether the property is furnished or unfurnished, with unfurnished properties being more common.
Furnished properties can vary widely in terms of what is included. Some may come fully equipped with kitchen appliances, utensils, bedding, towels, and more, while others may offer only basic furniture left by the landlord.
If you have pets and are looking for a furnished property, it may be more difficult to find landlords willing to accept you as a tenant, as many owners prefer to avoid potential damage to the furniture.
It's also important to clarify which pieces of furniture will remain if you view a property while tenants are still living there, and an inventory list may be created to ensure the items are returned in the same condition upon check-out.
Furnished properties tend to be slightly more expensive than unfurnished ones, and an extra security deposit may be required for the furniture.
Unfurnished properties generally include basic kitchen appliances such as a fridge, dishwasher, and washing machine as standard. However, they may come without light fittings, meaning you could find wires hanging from the ceiling until these are installed (by you).
SECURITY DEPOSITS
In Portugal, paying a security deposit is a common practice designed to protect the landlord against damage to the property or unpaid rent.
It is usually returned at the end of the contract, provided the property is returned in the agreed-upon condition, without damage beyond normal wear and tear.
The deposit can also be used to cover any outstanding costs, such as unpaid rent or repair expenses. For unfurnished properties, the standard security deposit is usually one or two-month’s rent.
For furnished or partially furnished properties, landlords typically require two months' rent, which is the legal maximum limit. It is also common to request an additional deposit to cover potential damage to furniture and appliances, with the amount varying depending on the landlord and the value of the items included in the property.
When you move out, the landlord is required to return the security deposit within a reasonable time, typically within 30 days. If there are any issues, the landlord may deduct costs for repairs, cleaning, or unpaid rent.
To avoid disputes, it’s important to carefully document the condition of the property both when moving in and when moving out.
If there is a dispute over the security deposit or if the landlord refuses to return it without valid reason, tenants have legal protections and can pursue appropriate legal action.
GUARANTORS
A landlord may require a local guarantor if the tenant lacks a credit history, capital, or assets in Portugal to ensure they can meet their obligations during the lease.
The local guarantor provides additional security, agreeing to cover rent or other costs if the tenant fails to fulfill their financial responsibilities.
Offering a larger deposit or paying several rents in advance can help convince the landlord, as it provides them with the extra security they may be seeking.
In some cases, landlords may even ask for 12 months' rent paid in advance for added peace of mind.
RENT PAYMENT AND RENT ADJUSTMENTS
Rent is paid in advance by the 8th day of each month for the upcoming month. For example, if the move-in date is 1st January 2021, the rent for February 2021 must be paid on or before 8th January 2021, and this pattern continues each month.
In Portugal, rent can be increased in the following situations, where increases are subject to legal limitations to prevent abuse:
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Annual Adjustment: rent can be updated each year based on the Consumer Price Index (CPI), limited to the variation of this index.
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Contract Renewal: when the contract ends and is renewed, the landlord can propose a new rent amount, subject to tenant approval or judicial arbitration if there's a dispute.
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Improvements to the Property: if the landlord makes substantial improvements, rent can be increased in proportion to the added value of the property.
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Agreement Between the Parties: in contracts without a fixed term, rent can be negotiated between the parties, respecting the limits of good faith.
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Long-Term Contracts (over 5 years): rent increases can occur every 5 years, based on market conditions and the property’s value; note that annual adjustments can still be applied.
The rent increase must always be communicated in writing, with at least 30 days' notice, and agreed upon according to the terms of the contract or through negotiation between the parties.
In a lease agreement with a fixed rent, such as a 3-year term contract, the rent cannot be increased during this period, except for specific exceptions outlined in the contract or by agreement between the parties.
Make sure you speak with your buyer’s agent to help negotiate these terms and ensure that the lease agreement is aligned with the proposed rental offer and the agreed rental terms.
WHEN CAN I TERMINATE MY RENTAL CONTRACT?
In Portugal, you can terminate your rental contract under the following conditions:
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After Completing One-Third of the Lease: If you’ve been in the rental property for at least one-third of the lease term, you can usually terminate the contract by providing a written notice of four months (120 days) before the date you intend to leave. For example, if you're in a one-year lease, you can give notice after about 4 months, and the notice period is 120 days.
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Mutual Agreement: In some cases, if both parties agree, you may be able to end the contract early without penalties.
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If the Landlord Violates Contract Terms: If the landlord fails to meet the terms of the contract (e.g., providing necessary repairs or services), you may have the right to terminate the lease early. However, this should be addressed formally, and legal advice may be needed.
Always check the terms of your specific lease agreement, as these conditions might vary. If in doubt, it's a good idea to consult with a lawyer or legal expert to ensure you're following the correct process.
UTILITY BILLS
As a tenant, you’ll likely be responsible for paying all household bills, which may include:
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Gas and electricity
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Water
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TV and internet subscriptions
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Garden and swimming pool maintenance
Once you receive the keys, the first thing you should do is read the meters and update your suppliers. If you don't do this, you could be held responsible for any usage incurred by the previous tenant.
In Portugal, the monthly utility costs can vary depending on factors like the size of the property, location, energy efficiency, and your usage. However, here are some general estimates for common utility expenses:
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Electricity and Gas: For a typical 1-2 bedroom apartment, the combined cost for electricity and gas is usually between €50 to €250 per month, depending on usage and the size of the property. In the winter months, heating can drive costs higher, especially if you're using electric heaters or gas for hot water.
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Water: Water bills tend to be lower and usually range from €15 to €50 per month, depending on consumption.
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Internet and TV: Internet and TV subscriptions (e.g., broadband and cable) typically cost between €30 to €50 per month depending on the provider and package chosen.
So, for a typical 1-2 bedroom apartment, total utility costs could range from €100 to €350 per month, but this can vary based on your lifestyle and the specific property.
Always check with your landlord to clarify exactly what is included in the rent.
WHEN TO START THE SEARCH
Properties are typically listed 30-60 days before they become available, so starting your search too early might limit your options.
You’ll find more property choices 30 days ahead of availability compared to those listed 60 days or more in advance.
On average, expect to spend anywhere from 2 days to 2 weeks finding the right property during your rental search. However, working with a Buyer's Agent can save you time by narrowing down options that best match your needs and handling much of the legwork for you.
VIEWINGS
Not all properties will be available to view at times that suit your schedule. Some may have specific viewing hours (e.g., weekdays between 15:00-16:00) or restrictions on when they can be shown (e.g., only after business hours).
As your buyer's agent, we will handle the scheduling for you, but you’ll need to be available during the designated times.
Weekend viewings are uncommon in Portugal, as the culture is very family-oriented, although it is sometimes possible to view some properties on Saturdays. Sundays, however, tend to be completely off-limits.
REQUIRED DOCUMENTS TO RENT A PROPERTY:
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Identification Document - Passport (for non-Portuguese nationals) or Portuguese Citizen Card (for Portuguese nationals).
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Tax Identification Number (NIF) - this is a requirement for both residents and non-residents. It’s needed for the rental agreement and other legal processes.
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Proof of Income or Employment - Pay slips for the last 3 months and a work contract if employed or Tax Returns (IRS) for self-employed individuals or freelancers.
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Bank Statement - A recent bank statement (often 3 months) to confirm your financial stability and ability to pay rent.
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Guarantor (if required) - The guarantor will typically need to provide their own documents, including ID, proof of income, and NIF.
READY, SET, RENT!
After gaining insight into the complexities of navigating the Portuguese rental market, you may find it valuable to have an experienced Buyer's Agent by your side.
Whether your search is challenging or you're in a rush to find the perfect pet-friendly, furnished property, an expert agent can provide guidance every step of the way throughout the renting or buying process.
We focus on working closely with each client, fully understanding their needs, preferences, and desires, ensuring a smooth and successful rental or purchasing experience.
GET IN CONTACT
Kuabit is an exclusive buyer´s agency and has helped many happy clients buy real estate in the Algarve, Braga, Cascais, Lisbon, and Porto. We´re happy to clarify any doubts that you may have. Reach out to us, and we’ll respond asap.
+351 936 070 311 (Portuguese mobile network number)