How to Avoid Renting Property in Portugal Pitfalls in 2026: Top Tips

1. Not Having a Written Contract

Particularly in major cities, such as Lisbon and Porto, it is quite common to find rentals on the market that will not give you a written contract. Rental contracts protect both parties, so make sure that your potential landlord gives you an official rental contract. Without one, you lack protection that can lead to legal problems further down the line.

Make sure that the rental contract clearly outlines the rent that you will need to pay, security deposits and conditions, duration of the rental period, responsibilities (for example, who will pay utility bills and running costs or be responsible for repairs), and termination clauses. Also, if you would like to make any changes to the property, make sure that this is allowed at this stage.

How long are rental contracts in Portugal?

In Portugal, long-term residential rental contracts are generally for a minimum of 1 year (12 months), although 2 (24 months) and 3-year initial contracts are also common. Bear this in mind when considering how long you want your rental contract to run for and ask about the renewal process, which should also be clearly shown in the rental contract. Short-term rentals are much shorter than this, and can be up to one night for short-term tourist stays.

For long-term rentals, we recommend having this contract reviewed by an experienced real estate lawyer in Portugal to avoid complications and to make sure the landlord is fulfilling his legal obligations under Portuguese law, particularly if the contract is written in Portuguese and you do not speak the language. The contract should outline the tenant’s rights clearly.

They will be able to catch things that you may not notice and ensure that the contract is fair for both parties, alongside walking you through the legal processes of renting. You can check for legal representation on the Ordem dos Advogados website.

Early termination

• For Tenants: Tenants can terminate a fixed-term lease by providing written notice to the landlord, typically 120 days in advance after the first six months of the tenancy (for contracts longer than one year). For contracts shorter than one year, the minimum notice period is one-third of the contract’s duration. For open-ended leases, the notice period is usually 120 days, but can vary depending on the contract.
• For landlords: The landlord can only terminate the contract before the end of the contract if the tenant defaults or for specific reasons laid out in law, such as the need for personal use, major renovations for the property, or non-payment of rent by the tenant. The notice periods for landlords are often longer than for tenants.

2. Visit the Property in Person

Never sign or pay anything before visiting the property in person and, if that is not possible, send someone you trust to visit the property on your behalf. Some listings for rental properties in Portugal can be too good to be true.

Money should never be sent before visiting a property. This is because landlords or property managers can show properties online with misleading pictures that do not reflect the reality of the property. This is common in Lisbon, Porto, and Cascais, where high demand means that renters are likely to agree to renting a property without thoroughly checking it out.

There can also be red flags on Facebook Marketplace, where reality does not live up to the images, or there are problems with the structure or interior of the property. Always make sure to visit the property. There can also be cases where the property does not exist at all, and you are faced with fake listings.

If the property owner is, for whatever reason, unwilling to let you visit the property in person, this is a big red flag, and you should reconsider your options.

4. Heating and Cooling

Despite Portugal’s mild climate, there is a lack of central heating in many properties, which is one of the major differences between Portuguese housing and housing in Northern Europe.

Make sure to check that the property has sufficient heating, as it can get cold indoors in the winter months, particularly in older properties. Having inefficient heating or getting a high-energy-consuming heater can lead to high electricity costs.

In contrast, also check if there is air conditioning that could prove useful in the summer months, particularly if considering renting in the Algarve or the Alentejo, or areas of Portugal known to get hot in the summer months.

In Lisbon and Cascais, it can also be worth investing in air conditioning, as it can also get quite warm in the summer, despite the breeze coming in from the Atlantic.

5. Be Wary of Bidding Wars

High demand for rental properties in Lisbon, Porto, and some other parts of Portugal has created an environment where, in some cases, landlords enter into a type of bidding war where they pressure tenants to pay a deposit by claiming that someone else is interested in the property.

The key point here is to make sure you are not pressured into paying anything before first having a rental contract in place and having verified the property.

If entering into negotiations with landlords, we highly recommend seeking the assistance of a real estate professional who will be able to negotiate on your behalf to secure the best price for you. Make sure the real estate agent or buyer’s agent you work with has an AMI license number issued by IMPIC, which is required for real estate brokerage in Portugal.

6. Do Not Pay Too Much in Advance for the Deposit

It’s typical to pay 1-2 months’ rent up front for the security deposit in Portugal. This will be returned to you when you leave the property. However, some landlords may request more than this, particularly in Lisbon, Porto, and the Algarve. You should not be paying more than two months’ rent when signing the contract.

Some tenants may agree to these terms, particularly if buying in a high-demand area, but paying too much does present financial risks. If you wish to leave the property early or if any issues arise with the landlord during your stay, they may make it difficult for you to get your deposit money back.

7. Rental Scams in Portugal: How to Verify a Property Before Paying

Before making any payment, make sure to verify the property’s lease registration. This stands for both short-term rentals and long-term rentals.

• Short-term rentals in Portugal require the property to have a valid Alojamento Local (AL) license, so be sure to check that the property has this license.
• For long-term rentals, make sure that the contract is registered with the tax office (Finanças, the Portuguese Tax Authority). Unlike Portugal’s short-term rentals, long-term rentals do not require an Alojamento Local (AL) license.

When it comes to renting property in Portugal, this one may seem obvious, and it goes hand-in-hand with many other red flags. In short, to verify a property before paying:

• It is also crucial to verify the ownership of the property using the Certidão Permanente, with the information provided always up-to-date.
• Take into consideration red flags in property listings and verify the property in person.
• Watch out for illegal subletting (see our next section for more details).

Key Steps to Navigating Renting Property in Portugal Pitfalls

Below, we’ve clearly outlined how you can protect yourself when renting property long-term in Portugal.

1. Verify ownership: Make sure the person you are renting from actually owns the property.
2. Visit the property in person: Never pay a dime or sign anything before actually visiting the property
3. Review the written contract carefully: Work with lawyers to review the contract to ensure your interests are fully protected. Also, make sure you are actually getting a written contract, as it is common in larger cities not to have one.
4. Photo inventory: Take time-stamped photos of each room and appliance on the day you move in to ensure you will have your deposit returned to you.
5. Pay by bank transfer: Paying via bank transfer leaves a legal paper trail, should you face issues further down the line. Do not pay in cash.
6. Confirm registration: Make sure the landlord is registering the lease on the Finanças portal (Tax Authority website).

Conclusion: Protect Yourself Against Renting Property in Portugal Pitfalls

Portugal’s property market is thriving, with many expats and foreign nationals coming to call Lisbon, Porto, and other stunning parts of Portugal home. However, as with renting in any country, renting property in Portugal does come with risks.

Armed with these eight things to watch out for, you’ll be well prepared to avoid red flags that could cost you financially and save you valuable time when relocating to Portugal and renting property.

Primarily, make sure you have a legally valid rental contract (and that the rental agreement has preferably been reviewed by a legal professional) and that you visit the property before signing anything.

Discover Your Ideal Rental with Goldcrest

There’s no place like home. This is why, when making the plunge and relocating to Portugal or finding a new place to rent, it’s incredibly important to take the time to find a rental home that ticks all the boxes.

As there is no one place to find all rental listings, and the best properties do not stay on the market for long, working with experienced professionals who understand the rental market and local regulations on renting, and who will have your back, can be a solid way to ensure your journey to the perfect rental property in Portugal is a success.

Whether you are seeking out your dream rental or looking to secure a property to present as proof for your residency visa, Goldcrest is here to help you uncover the property that meets your exact requirements. We work alongside you, from matching you with prospective properties to walking you through the rental process and the lease agreement, and negotiating the best rental price on your behalf. We also help you manage the current market, rental inflation, and answer any questions you may have about relocating to Portugal.

What sets us apart from real estate agents is that we protect the needs of the buyer or property renter throughout the process. We also help you get your NIF (Portuguese tax number), which is needed to rent property, and can assist with opening a bank account in Portugal.