Barbara Queiróz Updated: July 28, 2025
Are you considering relocating to Portugal and seeking out your ideal rental property? If so, you’ll want to make sure you protect yourself from potential pitfalls that could trip you up.
In this guide, we delve into red flags to look out for when renting property in Portugal, including how to avoid common rental scams that could cost you financially and complicate your move.
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 deposit conditions, duration of the rental period, responsibilities (for example, who will pay utilities 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.
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.
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.
2. Visit the Property in Person
Never sign 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 good too good to be true.
Often, landlords or a property manager will 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 out the property.
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.
3. Condition of the Property
When you visit the property, make sure to take into consideration its condition. Is there any mold? Are there any cracks in the wall? If renting a furnished apartment, is the equipment up to scratch? Does it have modern amenities?
Take a note and ask the landlord about these issues when you are visiting the property. If the landlord is working on fixing them, then no problem, but be sure to double-check this before signing any rental contract.
4. Heating and Cooling
Despite Portugal’s mild climate, make sure to check that the property has sufficient heating, as it can get cold indoors in the winter months, particularly in older properties.
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.
Looking for the ultimate resource on renting in Portugal? We have you covered.
5. Be Wary of Bidding Wars
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.
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.
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 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. Ideally, you should not be paying more than 4 months’ rent when signing the contract and even this is considered quite a lot.
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. Never Pay Anything Without Verifying the Contract
When it comes to renting property in Portugal, this one may seem obvious, and it goes hand-in-hand with many other red flags.
Before making any payment, make sure to verify the property. 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 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 short term rentals, long term rentals do not require an Alojamento Local (AL) license.
8. Be Aware of Illegal Subletting
Some tenants in Portugal sublet their properties without the permission of the owner of the property, which, in many cases, violates the rental contract.
This type of subletting will usually lack property contracts, meaning that you will not be protected legally. You can always request the official property documentation, known as Certidão Permanente, that will prove that they are the owner of the property and detail the legal details of the property.
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 not staying on the market for long, working with experienced professionals who understand the rental market and local regulations on renting, and 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.
Let's find your dream rental. We’re here to help.
