Renting out a property in Portugal can be a great idea for investment. But before you hand over the keys, there are a few important steps you should take to be fully compliant, protect your property, and make sure things go smoothly with your tenants. Here is a practical landlord checklist for property owners in Portugal to follow before renting out a home or apartment.
1. Check Legal Requirements
Before you rent out any property in Portugal, make sure you are compliant with the local regulation. Here are the key things to know:
- Energy certificate (“Certificado Energético”): This is required by law before you advertise the property. You can get it through a certified technician. Pricing varies between about 30€ and 300€ for residential properties, depending on the size. The certificate is valid for ten years in the case of existing buildings, and three years for new builds. If you do not have this in place, you could get a pretty heavy fine, so it is key to think about it.
- Habitation license (“Licença de Utilização”): Your property must have a valid habitation license proving it is approved for residential use. You can request it at the city hall (“Câmara municipal”). In general, the process is fairly quick and takes about ten days in average. Nonetheless, bear in mind, this differs from one city to another.
- Registration with the tax authorities: You must register your rental activity (“arrendamento”) with the tax authorities (“Autoridade Tributária”). For long-term rentals, this includes issuing electronic rental invoices / receipts through the Goverment Finances Portal (“Portal das Finanças”).
If you are new to this, it is worth speaking to an accountant or solicitor who understands property law in Portugal.
2. Notify the Condominium (if applicable)
If you are about to rent a flat, it is a good idea (and even sometimes a legal obligation) to inform the building management or the administrator that the property is being rented. This helps with communication and avoids issues if there are noise complaints or discussions about costs, for example.
3. Get Proper Insurance
Most probably, your standard home insurance will not cover rental activity. If you are about to rent your place, you need to further protect your property. Consider getting:
- A multi-risk insurance (“seguro multirriscos”): This covers damage to the building, the contents (especially important if your flat or house is furnished), and liability.
- A rental loss insurance (“seguro de renda”): This is optional, but it can protect you if the tenants stop paying. If you are just starting this business, and you want to avoid bad surprises, this can be a good idea to make sure you are getting paid every month.
Insurance requirements can vary by provider, so speak with your insurer about coverage tailored to rental properties.
4. Make Sure the Property Is Safe and Ready
Tenants expect a clean and functional place to live and you have a legal obligation to provide it. Go through this landlord checklist before showing the property:
- Clean thoroughly: Bathrooms, kitchen, windows, floors, everything should be spotless. You can always hire cleaning services if you want to outsource this activity.
- Fix anything broken: Light switches, faucets, locks, heaters, shutters, etc. Make sure everything is working properly to avoid tenants requests right at the beginning.
- Test all appliances: If you are including a fridge, washing machine, boiler, or stove, make sure everything works.
- Secure all doors and windows: Check locks and keys.
- Install smoke detectors: While not always mandatory, they are highly recommended to keep your tenants as safe as possible.
If your property is furnished, check that all furniture is in good condition and safe to use.
5. Take Good Photos and Write a Clear Listing
To attract the right tenants, you will need a good listing. Tips:
- Take bright, high-quality photos of every room (use natural light if possible). The best is to take pictures one day when there is a lot of sun outside, to make sure the house is looking its best.
- Mention key features: Number of bedrooms, bathrooms, if it has a balcony, elevator, garage, etc. The more information you add, the better the tenants request will be since they will already know the property corresponds to all their criteria.
- Be honest: Do not over promise, accurate listings lead to fewer misunderstandings later. It is better to have fewer visits, but good ones, to make sure you sign a tenancy agreement as soon as possible.
You can post your listing on Portuguese platforms like Idealista, Imovirtual or OLX.
6. Decide on Rent and Expenses
Choose a fair rent based on similar properties in your area. Check platforms like Idealista to see what others are charging. Also decide:
- What is included? Water, electricity, internet?
- How will payments be made? Usually via bank transfer with a monthly receipt.
- How much is the deposit? Usually one month’s rent, though two is also common.
Be clear about all this before signing anything.
7. Prepare the Lease Agreement (“Contrato de Arrendamento”)
A written contract is required by law in Portugal for most rentals. It must include:
- Full names and tax numbers (NIF) of both parties
- Property address and description
- Start date and length of contract (fixed-term or open-ended)
- Monthly rent and payment terms
- Deposit amount
- Any included services (e.g.: utilities, Wi-Fi)
- Maintenance responsibilities.
In Portugal, standard long-term contracts are often for one year with automatic renewal, unless stated otherwise. Use a lawyer or ask your accountant to help draw up a proper agreement or use a standard model from Portal das Finanças.
Once signed, you must register the lease and issue rental receipts (“recibos de renda eletrónicos”) each month through the tax portal.
8. Screen Tenants Carefully
In Portugal, it is common for landlords to ask for:
- Proof of income (like salary slips or an employment contract)
- Guarantor (“fiador”), especially for students or people without stable income
- Previous landlord references (if available).
While there are limits to how much you can ask for, it is important to choose tenants who are likely to pay on time and take care of the place.
9. Collect the Deposit and First Month’s Rent
Before the tenant moves in, make sure you:
- Receive the security deposit and first month’s rent
- Give the tenant a payment receipt
- Document the property’s condition (see below).
In Portugal, deposits are not held by a third party, you as the landlord, are responsible for returning it (or explaining deductions) at the end of the lease.
10. Do an Inventory Check-in
Walk through the property with the tenant before they move in. You should:
- Check the condition of walls, floors, appliances, windows, etc.
- Take photos and / or videos as proof
- Fill out and sign a check-in report (“Auto de Entrega “ / “Estado do Imóvel”) with the tenant.
This helps avoid disputes when the lease ends.
11. Provide Essential Information to Your Tenant
When handing over the keys, give your tenant:
- A copy of the signed contract
- Contact information (especially for emergencies)
- Instructions for appliances (or leave manuals)
- Building rules (if part of a condominium)
- Information on garbage collection and recycling.
This helps your tenant settle in and shows you are professional and prepared. You can also compile this information in a check-in guide that you handover to your tenant on moving day.
12. Organise Your Paperwork
Keep a folder (physical or digital) with all rental-related documents:
- Contract and registration confirmation
- Energy certificate and habitation license
- Receipts and payment records
- Communication with your tenant
- Maintenance invoices.
You will need this information if there is ever a legal issue or even just for taxes.
Final Thoughts
Being a landlord in Portugal comes with responsibilities, but it does not have to be difficult. If you follow this landlord checklist, you will be well prepared to rent out your property legally, safely, and with peace of mind.
Take time to do things properly from the start, it will save you headaches later.