F.A.Q.

Applying for a Rental Property

What does a rental contract consist of?

It is a document that stipulates the rights and duties of both the owner of the house and the tenant, aiming to protect both parties. It can be done for residential or commercial buildings.

 

In addition to the landlord or tenant, if there are guarantors, they must also be included in the contract.

 

What documents are needed?

Once the house has been chosen, all the details have been agreed upon and before concluding the rental contract, the landlord must ask the tenant for the following documents:

 

  • BI or Citizen Card;
  • Last 3 payslips or last IRS statement.

 

The tenant, in turn, has the right to request a series of documents related to the property from the landlord, namely:

 

  • Predial Booklet;
  • Energetic certificate;
  • Certificate of Content;
  • Housing license.

 

It is also natural for landlords to ask for a deposit (which may consist of the value of one or two months’ rent in advance) as a guarantee of compliance with the contract and even to protect themselves from possible damage to the property.

 

What elements must be included in the lease contract?

A rental contract must be concluded in writing and must include, from the outset:

 

  • The identification of both parties, including date of birth, place of birth and marital status;
  • The exact location of the house that will be rented;
  • The number and date of the housing license;
  • The amount of rent, as well as how it is updated and when it must be paid;
  • The date of conclusion of the contract.

 

It must also include: the identification of which places are intended for the tenant’s private use, which are intended for common use and any annexes. The duration of the contract must also be included, as well as, whenever applicable, the condominium regulations.

If a term is not established in the lease contract, then, in the case of a lease intended for housing, it is assumed that this will be two years (in the case of buildings for residential purposes). In addition to the elements mentioned, the lease contract may also contain other clauses that are agreed between the parties and permitted by law.

 

It is also important to point out that everyone who will live in the rented house must sign the contract, be it a couple or even, for example, a group of friends who go to university and decide to rent an apartment together.

 

Termination of lease contract: deadlines to respect

It is always possible to terminate a rental contract before the scheduled termination or renewal date, both by the landlord and the tenant. To this end, each party must respect the notice periods indicated in the Civil Code.

 

Termination by the tenant

To terminate their rental contract, the tenant must notify the landlord well in advance within the deadlines indicated in article 1098 of the Civil Code:

 

  • If the agreed term for the duration of the contract is equal to or greater than 6 years, the tenant must notify the landlord that they are leaving 120 days in advance;
  • If the contract term is equal to or greater than one year and less than six months, the advance notice must be 90 days;
  • If the duration is equal to or greater than six months and less than one year, notice must be given 60 days in advance;
  • When the term is less than six months, the notice must be one third of the initial duration of the contract.
  • If the tenant does not comply with the notice periods, he will have to pay the corresponding outstanding rent.

 

Termination by landlord

The landlord’s intention not to renew or cancel the lease contract must be communicated to the tenant within the following deadlines established in article 1097 of the Civil Code:

 

  • If the initial duration of the contract or its renewal is six years or more, the landlord must notify the tenant 240 days in advance;
  • When the initial duration of the contract or its renewal is equal to or greater than one year and less than six years, the notice period must be 120 days;
  • If the initial duration of the contract or its renewal is equal to or greater than six months and less than one year, the advance notice must be 60 days;
  • If the contract has a term of less than six months, then the notice must be given counting one third of the initial duration of the contract or its renewal.
  • Landlords can terminate contracts due to tenants’ non-payment, with a tolerance of up to three rent arrears, at which point they can be evicted.

Likewise, this complaint by the landlord may be justified to carry out works (in which case the tenant must be notified at least six months in advance of the vacancy date) and also due to the needs of the house in question. for housing for yourself or your first-degree descendants.

 

Finally, it should be noted that, to terminate the lease contract, either party must do so in writing via registered letter.

 

Renting

What happens when the lease expires?

You will find details of the expiry date in your lease agreement. If this date passes, your lease becomes a ‘continuing agreement’. This ensures all parties are bound by the original lease terms.

You can also request a lease renewal from the owner or agent. The owner of the property has the right to renew the lease, let arrangements continue under the terms of the original lease or issue the appropriate notice requesting that you vacate the property.

It is important for you to discuss whether or not you want to continue living in the property with the owner or agent well before the expiry date of your lease, which allows everyone to make the necessary plans and arrangements.

I want to break my lease, but have another person who wants to take over the property. What do I do?

Any agreed handovers must be done correctly and legally – you and the other person should contact your agent as soon as possible and let them know what you want to do.

You should also be aware that your agent or owner has no automatic obligation to agree to your request – the new person must complete an application form, provide references and carry out all the other steps that are necessary for anyone to be approved as a tenant.

If this application is approved, the new person should not move into the property until a final inspection has been carried out and the necessary arrangements are made with your owner or agent for the release of your bond.

What happens if I need to leave the property before my lease expires?

In this event, you are responsible for all reasonable expenses incurred by the owner or agent to locate a replacement tenant.

You would also need to continue paying rent until a new tenant is located and enters into a new lease agreement. You and the agent are both able to actively seek a new tenant – but this individual must complete all normal processes and checks before they are approved.

It is essential that you not leave the property without notifying your owner or agent – this will likely result in the loss of your bond and could also create a bad rental history record, which may make it more difficult for you to rent again in the future.

While in some areas, planned legislation will allow a tenant to make minor changes to the property – such as putting up picture hooks – as long as they leave the property in the same condition as when they moved in, other states take a more strict approach.

It is important for you to be aware that if any damage occurs through the installation or removal of picture hooks during your tenancy, you may be held financially responsible.

What happens if the owners of the property I am renting decide to sell?

There are a number of different scenarios that can occur if the owner decides to sell – these can depend on the expiry and terms of your lease agreement.

For example, if you are within the term of your lease agreement and the property is sold to another investor, you continue to have your rights to the property as a tenant when the new owner assumes the responsibility as your landlord.

If the property is sold to someone who wishes to live there, you will be given notice to vacate – this will usually give you plenty of time to arrange your next property.

How do I arrange any repairs that might be needed?

You need to advise the owner or agent of all requests for maintenance or repairs, preferably in writing. Maintenance forms for this purpose are often provided when you first move into the property.

It is essential that you do not attempt to repair things yourself – you have a responsibility to advise the agent or owner of maintenance matters that require attention. Your lease will include provisions for how you should handle repairs or maintenance requests.

What should I do if urgent or emergency repairs are needed at the property?

Generally, emergency repairs are required when the occupants’ health and safety – or the property itself – is threatened.

You should urgently try to contact your agent or owner and ensure you give them the opportunity to arrange for the emergency repairs, as long as they are completed in the most urgent and expedient manner possible.

If you cannot contact your agent or owner, you may have been supplied with a list of tradespeople nominated to handle emergencies when you signed your lease.

If some of my possessions are destroyed in a fire at my rental property, will my landlord pay for them?

As the tenant, it is your responsibility to insure your own personal belongings – the owner is responsible for insuring the fixtures and fittings included in the property at the time of letting, as well as the premises.

If you do not have home contents insurance for your personal belongings, you may need to bear the cost of replacing your possessions.
If you do not have home contents insurance for your personal belongings, you may need to bear the cost of replacing your possessions.

What should I do if I am temporarily unable to pay my rent?

It is essential for you to contact your agent – or the property owner directly, if you are not renting through an agent – as quickly as possible if there will be a problem with your rent payment.

Ignoring the problem will not make it go away – and you may find that you are able to come to an understanding with the agent or owner if your inability to pay rent is only temporary.

Communication is essential in these circumstances and it is important for you to continue to keep the agent informed of your circumstances.

I would like to rent a property, but do not have a job. Will this make it hard for me to rent?

When you rent a property, the major requirement is that you are able to prove you can meet your rent payments and pay the initial bond – this is usually equivalent to four weeks’ rent.

If you have a considerable amount of savings, this may not be an issue – although you may be at a disadvantage if you cannot show a source of income. If you are receiving assistance from another source – such as Centrelink payments – you should provide verification of this.

I want to buy a house in Portugal. As a foreigner, what are the steps for this process?

Obtain a NIF

Before purchasing a property in Portugal, you’ll need to obtain a NIF (Número de Identificação Fiscal), which is the equivalent of a tax identification number. This is necessary for opening a bank account and conducting financial transactions in the country.

 

How To Get a NIF Number in Portugal

It is important to know that applying for the NIF number in Portugal is somewhat different for EU and non-EU citizens. 

 

If you are a non-resident of Portugal

It is possible to apply for the number without physically being in Portugal. In that case, individuals can get a temporary NIF number from a representative or a Portuguese lawyer who they appoint as their proxy. The temporary number will be replaced by a permanent one after a few months or after the individual is a permanent resident in Portugal.

 

If you are a resident of Portugal

If you’re a resident of Portugal you can apply for the NIF in various ways as stated below:

  • You can visit “Finanças” (the local tax office) in person, or you can go to a citizen’s shop. Businesses can apply online at “Finanças”. It is important to remember that the website is in Portuguese only.
  • You can appoint a lawyer or an accountant to apply for it on your behalf.

 

Step By Step Guide

Luckily, you can get your NIF through two simple steps.

 

Step 1: Obtain the Required Documents

 

A photo ID

When you appoint a lawyer/representative on your behalf, a scanned, signed copy is sufficient. For non-citizens of the EU (European Union), EEA (European Economic Area), or Switzerland it is a must to show their passport. For citizens of the EU, EEA, or Switzerland, it is possible to show their passport or citizen’s identity card. Sometimes, a birth certificate can be presented if the passport or photo ID cannot be submitted.

 

Proof of Residency

Individuals who live in Portugal while applying for a NIF must provide a residential address. They can provide proof of residency via a rental agreement, a utility bill, and so on.

Individuals who apply for the NIF number from abroad (and whose address is outside of EU/EEA) must send a document (a power of attorney signed by an attorney and translated into Portuguese) to their lawyer/representative for them to act on the individual’s behalf. In that case, a bank statement of no more than three-month-old which states the non-Portuguese address will be sufficient.

Individuals who are citizens of the EU and living elsewhere can obtain their proof of address from somewhere in the EU.

 

Step 2: Go to the Closest Finanças to You

It would be easier to find and go to the closest government office. It is also important to find out their opening and closing hours before arriving there. You should bring the passport/ID card and the proof of residence to the office with you.

 

Step 3: Get Your NIF Number

After submitting these documents, you will be qualified to get your NIF number. It will usually take a few minutes for you to get your NIF. Note that your NIF doesn’t expire.

 

Budget

 Establish a realistic budget that takes into account not only the purchase price of the house but also additional costs such as taxes, legal fees, real estate agent fees, and maintenance costs.

Financing

 If you cannot afford to pay for the property in cash, consider seeking a mortgage loan from a Portuguese bank. Make sure to understand the terms and conditions of the loan, including interest rates and terms.

Choose a Real Estate Agent

Working with a real estate agent can make the property search process easier and assist with negotiations. Ensure that you choose a licensed real estate agent in Portugal like Sansa Real Estate.

 

Our team of dedicated real estate experts possesses in-depth knowledge of the local housing market and a commitment to finding the ideal home for you. Whether you’re seeking a cozy apartment in the heart of the city, a spacious family house in the suburbs, or a luxurious villa by the sea, Sansa Real Estate has the expertise to guide you through the process.

Purchase and Sale Agreement

After finding the desired property, you and the seller should sign a purchase and sale agreement. It is advisable to hire a lawyer or solicitor to review the contract and ensure your interests are protected.

Be aware of the taxes and legal costs associated with buying a property in Portugal. The Municipal Property Transfer Tax (IMT) and Stamp Duty are examples of taxes that may apply.

Technical Inspection

Before finalizing the purchase, it’s advisable to conduct a technical inspection of the property to identify any structural or maintenance issues.

Public Deed

The public deed is the legal document that officially transfers ownership to your name. It is signed before a notary public. Make sure to understand all the details before signing.

 

Remember that laws and regulations can change over time, so it’s advisable to consult with a lawyer or solicitor specializing in real estate transactions in Portugal for specific and up-to-date guidance on the property purchase process. Additionally, consider the tax implications in your home country when buying a property in Portugal.

Property management

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