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Faro Mayor offers MPs advice on short-term tourist rental market

alFaro’s mayor has warned parliament of the negative impact of the current raft of proposals to change the rules for the short-term rental of accommodation to tourists.
 
Rogério Bacalhau said it is "impossible" to impose a law that requires owners in condominiums to authorise Alojamento Local (AL) licences.
 
"If the rules that are on the table are approved, we will certainly return to the year 2013, when many of these rental operations go underground or cease to exist," said Bacalhau, reflecting on the five bills tabled by various political parties, all of which call for AL authorisation to be granted at a condominium owners’ meeting.
 
Bacalhau was offering his insights alongside the mayor of Lisbon at a hearing called by the Working Group on Local Accommodation. Bacalhau highlighted the positive impact of the current AL regime, which has been in force since 2014, in legalising AL rental properties.
 
"In 2014, there were 560 beds that the Council knew about and only 65 had been registered. Today, there are 1,900 beds known to the Council and all have been registered," said Rogério Bacalhau, indicating that the growth in legalisation went hand-in-hand with an increase in the quality of service provided by AL operators.
 
For Faro Council, the local accommodation business, "is not a problem, but an opportunity." The mayor also highlighted the positive aspects of people buying and doing-up old buildings to provide tourist accommodation.
 
"We do not have the problem of neighborhoods where properties are only for local accommodation," said Bacalhau, adding that many tourist accommodation properties have been opened up, "scattered throughout the county, both in urban areas and in rural areas, which has been very positive for the local economy, in particular in terms of job creation.”
 
Although AL is not considered a general problem, Faro Council has been debating the rental accommodation issue, due to "problem of lack of accommodation for normal rental of property to locals and to students." 
 
As for situations where AL accommodation has swamped the normal renting of properties to locals, mostly in Lisbon and Porto, the Faro mayor said this has to be "monitored by the municipality, which is close to any possible problems," and that municipalities have the capacity to intervene in their particular areas, through municipal regulations.
 
"If we legislate at a national level, the municipality itself will be creating problems within its municipal area," warned the mayor of Faro, adding that this could "create a problem across the whole country."
 
The working group continues.
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For property owners looking for information on Alojamento Local issues and opportunities, contact the National Association of Local Lodging Establishments at www.nalle.pt and/or ask afpop