Updated: July 27, 2023
Famous for its stunning architecture, picturesque landscape, pleasant summers, and welcoming population, Portugal is situated in Southwestern Europe and is surrounded by the Atlantic ocean. Since the country experiences varied weather conditions – from very hot summers to storms during winters, it is important to find a property management company to manage your property in the country to protect your house/apartments from harsh weather conditions.
In addition, a property management company in the country will also help you promote your property, maintain client relationships and more. This article details how to find a property manager in Portugal, how to hire a property management company, and the cost of property management agencies.
Advantages of Hiring a Property Management Company
If you are planning to invest in real estate in Portugal, it is important to hire a good property manager. A property management company helps you to ensure the maintenance of your property in Portugal on your behalf. A property management company offers various services, such as:
- Marketing and promotion of your property in Portugal
- Maintaining relationships with prospective rentals and managing inquiries
- Filtering tenants
- Organizing viewing sessions of your property for potential tenants
- Taking care of all payments and paperwork
- Managing queries of clients or addressing complaints
- Carrying out evictions (if required)
- Maintaining your property, initiating repair works, and other activities like ensuring pest control, and the maintenance of smoke alarms, lighting, pool, and lawn.
You must note that these services are mostly customized according to your needs and requirements by your property management agency. Since all these services are critical, it is quite helpful for householders in Portugal to manage their property through property managers – whether it is a single property or multiple properties in the country.
Cost of Hiring a Property Management Company
It is critical to choose the right property management company to manage your property in the country efficiently. A good property management company often comes with a price, but it also ensures proper administration of your real estate. So you should definitely invest in a decent property management company if you have a property in Portugal and want to market it extensively.
There are various property management companies that offer property management services in Portugal. Some of them include: Portugal Property Management, Belion Partners, and Quinta Do Lago. It is important to note that the cost of these agencies can differ and mostly depends on the location of your property in the country, the square foot of your property and the range of services that you want to avail of from the property management company.
Most property management companies charge clients an ongoing fee on the basis of services offered. But there are also property management agencies that work on a commission model.
Considerations when Choosing a Property Management Agency
Choosing the right agency plays an important role in ensuring proper management of your property in Portugal. If your property is located in one of the main cities or near the coastline, you will tend to find more property management companies.
Look up the local property management companies online to find out more about the services on offer. Local forums/expat forums can also provide assistance and advice.
However, if you are around the area where your property is actually situated, you can always avail of the advice of the local residents or real estate agencies. After you have completed your search, make sure to choose the right property management company, as it will be the entity responsible to run the entire management of your property and uphold your reputation. Ensure to ask the right questions as it will help you to zero down on the best property management company.
Expat Property Management – Questions to Ask your Property Manager
- How much experience do you have in managing properties in the area?
- What are the kind of services that you offer? Is there any specific service that you cannot provide?
- How much do you charge for the operation and maintenance of the property?
- Do you charge any additional fees?
- How do you market/promote the property?
- How long does the management contract remain valid for?
- What is your cancellation policy?
- How much do you charge for managing properties? Are there any pricing packages available?
- How frequently do you update your clients about their properties?
If you are interested in finding out more about investing in the Portuguese real estate market, make sure to check out the following articles:
Frequently Asked Questions
What is the property management fee for the Algarve?
Most property managers charge 20% of your rent in Portugal as property management fees. In addition to this, you need to add 6% VAT to the cost.
How do I invest in a property in Portugal?
First, you need to decide your budget. Next, you need to list down all your requirements and priorities. Next, you need to select your seller and offer your price. You can do so through two options – Buyer’s agent or realtor.
Is rent negotiable in Portugal?
Wherever you live in the world, it is always a little dicey when it comes to negotiation for rental properties. The negotiation completely depends on the will of the landlord and the area where the property is located. If the house is situated in a high-demand area and is of the highest quality, it is unlikely that the rent will be negotiated.
Can I rent out my property in Portugal?
Yes, you can rent out your property in the country. But keep in mind that the rental market is highly regulated, so make sure that you follow all rules and regulations while putting your property on rent – especially for a short-term basis.
Is rental income taxed in Portugal?
Yes, if you are a citizen of the country then you need to pay tax on your rental income at a flat rate of 25%.