Three months letting property to tourists yields as much as a year's rent

The relative rental income figures are from João Queirós, a researcher and university professor who was heard this morning in Parliament by the Working Group looking at changes to the Alojamento Local, short-term rental laws: three months short-term rental income is more than the money earned from a year's permanent rental.

 

The development of short-term tourist rentals in the last three years seen an increase in the average price charged per night and has discouraged the rental of properties on a long-term basis.

"80 to 90 days of short-term tourist rental outweighs the income from a full year of permanent rental," concluded the professor, adding that this clearly is an incentive to offer property for tourist rentals instead of long-term rent, even for a fixed period."

 

João Queirós is a specialist in the urban and social effects of tourism in Portugal’s main cities and, with researcher Jorge Malheiros, from the Institute of Geography and Spatial Planning at the University of Lisbon, attended a hearing of the working group to give them the benefit of his expertise.

 

With these seemingly endless hearings, MPs have been analysing five amendments sent in by political parties, each of which has its own views.

 

Proposals from the PS, PCP, Left Bloc, CDS-PP and PAN have included a 90-day cumulative rental period limit, councils running the licensing scheme, condominium neighbours having the right to object to a rental license application, restrictions in the number of rental properties in city centres and many other suggestions that have served to create deep confusion and apprehension in the market, thus limiting invetment.

 

The researcher drew attention to the fact that at the international level there is currently "a very vivid debate on this issue of the time limits for total rentals," but no clarity on the impact this has nor is there any resulting increase in the number of long-term rental offers.

 

Jorge Malheiros expressed doubts about the introduction of a 90-day limitation for short-term rentals, "The 90 days can work well at a time when the market works well. In some areas it may make sense, in others not," he said, unhelpfully.

 

The submissions to the working group are continuing, with the various parliamentary groups arguing that it should be possible to have a final proposal of amendments by the beginning of the summer.

 

However, they have to hear more than 23 submissions, at a rate of two per week, means at least three more months of hearings before the MPs can decide which ideas are sensible and which are counter-productive. 

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