How to Find a Property Manager in Portugal: The Ultimate Guide

What does a property manager in Portugal do?

A property management company can help you with buying to let in Portugal, and ensuring that the maintenance of your property is carried out on your behalf. They don’t just screen tenants; they also handle property maintenance complaints, service upkeep, collect rent receipts, and transfer utilities to residents as needed.

A property manager can provide additional services according to your needs. For example, they can pay the mortgage or property taxes on your behalf. If a tenant causes issues, property managers can handle evictions, making them helpful for property owners in Portugal.

Advantages of Hiring a Property Management Company

If you plan on buying property in Portugal so you can rent it out instead of living in it, a property management company can provide strategic advantages.

Many investors rely on apartment management services in Portugal to handle tenants, maintenance, and bookings efficiently. Here are the main benefits of hiring a property management company:

• Taking professional photos to market and promote your property
• Concierge services, like meeting the guests in person for viewing sessions
• Maintaining relationships with prospective renters and addressing complaints
• Filtering tenants
• Taking care of all payments and rental contracts (such as stamp duty or other property taxes)
• Carrying out evictions (if required)
• Property maintenance, initiating repair works, and other activities like ensuring pest control and maintaining smoke alarms, lighting, pool, and lawn
• Connecting with local experts, such as a property surveyor in Portugal, a tax advisor, and a real estate lawyer

Property Maintenance Costs in Portugal

Property maintenance costs in Portugal are lower than in most Western European countries, especially outside Lisbon, Porto, and the Algarve. Older properties and short-term rentals come with more expensive ongoing maintenance.

If you’re renting out real estate in the Algarve, professional property management in Algarve ensures your investment is cared for, rentals run smoothly, and you can increase your income. The table below provides a general estimate of your potential expenses, but they can vary based on the location, the size of your property, and the type of maintenance you need.

How much does a property manager cost in Portugal?

Portugal property management fees typically range from 8 to 12 percent of the monthly rent for long-term rentals and 20 to 40 percent of the gross rental income for short-term or holiday rentals. Additional services, like property inspections or marketing, can set you back €40 to €100 per month.

However, fees vary by region, property size, and service level, with Lisbon, Porto, and the Algarve having higher fees than rural or inland areas. A standard VAT (Value Added Tax) of 23 percent might apply on these services.

Note: Property owners pay a 6 percent VAT for tourist accommodation (Alojamento Local). You need an AL license to rent out your property short-term. It is charged on the rental income from guests, not on the property manager’s service fee.

Short-Term vs Long-Term Property Management in Portugal

The costs for property management in Lisbon, Portugal, vary based on the location and the size of your real estate:

• Short-term rentals: The average fees for short-term rentals are 20 to 40 percent of the rental income as vacation rentals require more upkeep and frequent guest turnovers. However, some companies offer basic or co-hosting packages for 10 percent to 15 percent of the income, excluding cleaning and maintenance costs.
• Long-term rentals: The fees usually range between 8 percent and 12 percent of the monthly rent, while comprehensive management packages can go as high as 15 percent to 20 percent.
• Medium-term rentals: Management costs generally fall somewhere in between, depending on how often tenants change and the level of property management support you need.

Most property management companies charge clients an ongoing fee based on the services offered. However, property management agencies also work on a commission model. With a property finder in Portugal, you can access local insights you would have never known otherwise. They can make the home search easier and more efficient.

For anyone considering real estate investment in Portugal, understanding property management is a critical first step. Insight into local rental markets, regulatory compliance, and management costs can help investors choose properties that generate strong returns while minimizing risk.

How to choose the right property manager in Portugal?

Many overseas investors find a property manager in Portugal from the USA before purchasing, so they can plan rental income and maintenance in advance.

To choose a property manager, you should:

• Decide whether you need steady long-term tenants or higher short-term rental income.
• Look for managers who operate locally, preferably in a city, town, or region you are interested in.
• Check for positive reviews and ask for a total cost breakdown for the property management services they provide.
• Consult with a buyer’s agent or a real estate agent in Portugal to ask for a reference from other property owners.
• Find out how they deal with repairs, emergencies, and electronic rent receipts (recibos eletrónicos).
• If possible, start with a short trial period before you commit to a long-term contract.

Expat Property Management Questions to Ask Your Property Manager

To make the most of the Portuguese real estate market with the help of local experts, it is important to ask them the right questions.

Here are some questions to ask your property manager before hiring them:

• How much experience do you have in managing properties in the area?
• How many property owners have you worked with?
• What network and resources do you offer?
• How can you meet my specific needs?
• What kinds of services do you offer? Is there any specific service that you cannot provide?
• How much do you charge for rental management?
• How do you set the rent?
• What steps do you take to market the property?
• How long does the management contract remain valid for?
• What is your cancellation policy?
• Do you use any new technologies to improve the guest experience?
• Are you an active real estate investor in Portugal?

Goldcrest: How We Can Help You 

Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.

Why choose Goldcrest?

• Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
• Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
• Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
• Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
• Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.