The Local Accommodation Association of Portugal (ALEP) has slammed the new draft law, that empowers neighbours decide whether someone’s flat can be rented out to tourists.
ALEP says the proposal is "unconstitutional, unadjusted, reveals a great lack of knowledge, and if it is adopted, could lead to unemployment in Lisbon and Oporto alone of more than 10,000 people, thus putting into question the main income of more than 4,000 families."
In a statement from the association, it was "surprised" by the fact that "this proposal comes from the Government’s own party which has given priority to the growth of tourism and which publicly has praised the record financial results from this sector."
Instead of clarifying the law, the government proposes to pass the buck in requiring property owners to obtain a statement from the condominium assembly to give a member permission to rent out an apartment. This additional document will need to be submitted with AL application forms for apartments, along with all the other paperwork.
ALEP also considers that the Socialist Party proposal may be unconstitutional since it "contravenes the Right to Private Property established in art. 62 of the Constitution which emphasises the rights of property owners to decide on how they use their properties.”
"This project hurts the interests of those who invest in real estate, the rehabilitation of urban areas and tourism, as evidenced by the recent ruling by the Supreme Court of Justice in favour of the compatibility of local accommodation with housing use, so owners did not need the permission of their neighbours before letting their apartments."
Many will be forced back into the illicit 'grey market' for short term property lettings, around 75% of short term lettings are 'under-the-counter,' with other owners who were considering legalising their businesses, deciding to continue illegaly.
Comments
ALEP represents its members, it can't really represent those that have decided not to secure an AL licence.
Of those in the short-term lettings market, only between 20 and 25% have registered in nearly a decade as the system is over-complicated, over-regulated and unattractive.
The government does little about this as the illegal lettings market is vast and benefits the economy.