How to rent out your property in Portugal when you are abroad
Many foreigners look to Portugal to buy a second home or even invest through a Golden Visa. The requirements to remain in the country for these foreigners may vary from 1 week to six months. This means that most of them leave their homes unattended for extended periods of time.
But why leave your precious home empty when you can be maximizing the investment made and monetize their initial investment by renting out their homes while they are away? Most think about doing it but lack the know-how or don't know or trust entities to do so. From prepping your house, storing away your belongings, renting your home and managing the rental- Kleya takes care of everything!
Here are some reasons as to why you should consider renting out your Portuguese home and why you should do so with Kleya!
Why not rent it out?
Furnished rentals are possible, but they are not improvised!
A very attractive concept for tourists: 70% of them believe that private rental is an accommodation offering the best value for money, according to an Ipsos survey. This is indeed the possibility for travellers that are looking and opting less for hotels and enjoying the comfort of an apartment or villa.
Provided everything goes well... Tenants have been alerted to questionable practices and contracts on some platforms containing illegal clauses. Airbnb has, for example, been pinned on the use of its users' personal data, the lack of compensation for defrauded tenants, or the lack of clear consent of users.
On the owner's side, there is also a concern. Worries can multiply, your home may be found left in bad condition, dirty, breakage, etc. So, if you're motivated to rent your home during your time away, check out our handy suggestions and tips for a trouble-free seasonal rental!
Who can rent their residence for seasonal rent?
Landlords have the right to rent their main or secondary residence without declaration or authorization, for a maximum of three months to the same tenant. This is a short-term furnished rental. You have no obligation to notify the condominium trustee or the union council.
For tenants, on the other hand, a clause prohibited by default the sub renting of the property. They will, therefore, have to ask for written permission from your landlord to rent your accommodation.
How do I find tenants for a seasonal rental?
While some homeowners are reluctant to rent their homes, most are happy to rent out other people's homes!
Depending on the region, it will, therefore, be difficult to find tenants. Kleya can handle the full process of seasonal furnished rentals. Calling in a professional can be useful if you aren't near or don't live in the same country as the rental property: they can manage the rental, be on-call, supervise the property and manage any repairs that need to be done.
Is it necessary to sign a lease?
The best way to guard against any problems, before, during and after the rental, is to sign a formal lease.
The lease will include the names and contact details of both parties, as well as a very detailed description of the property. As actual charges are difficult to calculate, a charging package will be preferred.
The rental amount, the terms of payment and the amount of the security deposit, if any, will be provided.
When signing, you can claim a down payment (the first payment that can be refunded) or a deposit (lost in case of cancellation).
Signing a lease for a furnished seasonal rental is essential, Kleya can take care of everything, whether it is the drafting of the lease as the signature of it.
Is insurance mandatory?
Most home insurance policies cover the possible presence of a third party in your home. But not tenants! Be careful to warn your insurer of the possibility of this happening even if its a one-time situation.
To leave quietly, it is better to take out an additional guarantee during the duration of the rental, or over a period of several months if you receive several tenants.
Some foreign tourists do not necessarily have liability insurance, make sure you are covered for any incident that your tenants may cause.
What if there's water damage, independent of the presence of the tenant or even if it occurs in his presence? Of course, insurance covers you, but you may have to come and manage the disaster yourself!
What to do in the event of a dispute?
Some simple precautions will prevent you from unpleasant surprises. Unplug your landline phone, if you offer Internet access, have the tenant sign a certificate pledging not to use your land connection to access illegal content, or engage in hacking activities.
We may be preparing and backing up, but some transactions can go badly. If your tenant feels that the unit does not match the description that was provided to him, he will try to negotiate a reduction in the rent. So, don't neglect the description you create of your property, always provide as many photos and details as possible.
What if a surprise awaits you on your return from your vacation? A Break-in, theft, vandalism, in most cases, your insurance only covers involuntary damage, willful damage, will have to be covered by your tenant's insurance.
Do I have to report the income from the seasonal rental of my house?
When renting your house for only a few hundred euros a year, we understand that you may feel tempted not to declare them. However, it is mandatory! Income from this rental must be absolutely stated on your tax return, and they are taxable.
In conclusion, seasonal rentals can be a good opportunity to make a profit on your vacant property, provided you take all the necessary precautions so as not to have any horrid surprises.
You can opt to do it on your own, with all the drawbacks that this may entail such as, writing the lease, being on hand to check in/check out, be able to intervene in case of problem, etc.
Or Kleya can take care of everything for you so that you can make your vacant property profitable, in peace, knowing that we will organize all aspects of the rental in these details, that we will be the point of contact of your tenant, and that we will be able to intervene in your name should problems arise.
Interested in renting out your property?
Contact us today!