Since the Local Lodging boom began in 2008, small property owners are returning in increasing numbers to traditional long-term rentals. Numerous factors are pushing this trend. “AL” offerings have reached glut conditions in some central urban areas. Excessive offerings and limited demand push down prices. Over the last ten years, Local Lodging enrolments in Lisbon have soared from less than 3,000 to almost 50,000. In addition, Local Lodging can prove to be demanding work. Outsourcing tasks such as cleaning, marketing and maintenance can eat into profits. In contrast, long-term rentals require only a minimum involvement on the part of landlords.
New legislation stipulates that the minimum period for long-term rental agreements is one year and renewable for three years. According to the decree, “SIMA” (“Serviço de Injunção em Matéria de Arrendamento” – Lease Injunction Service) will be created to strengthen tenants’ rights, namely for the reimbursement of improvements incurred by tenants.
New legislation stipulates that the minimum period for long-term rental agreements is one year and renewable for three years. According to the decree, “SIMA” (“Serviço de Injunção em Matéria de Arrendamento” – Lease Injunction Service) will be created to strengthen tenants’ rights, namely for the reimbursement of improvements incurred by tenants. The legislation also assures the continuation of the National Rental Office (BNA), which has exclusive jurisdiction to deal with procedures for evictions.
The legislature voted in favour of the PS proposal mandating that the minimum term of lease contracts should be 12 months. The minimum time period does not apply to contracts for non-permanent housing or special transitory purposes, namely for professional motives, education, training or tourism.
Marriott International and Hostmaker announced a collaboration to introduce a new holiday home rental undertaking under Marriott’s Tribute Portfolio Homes brand. This venture marks Marriott’s first step into the home-share market, nine years after Brian Chesky founded Airbnb and disrupted the travel industry. The move comes at a time when Airbnb is attempting to step out of its “alternative travel” image, introducing concepts like Airbnb Plus that offer a more curated travel experience. Meanwhile, other traditional hospitality companies like AccorHotels and Hyatt have also launched similar endeavours.
Worried and even frightened by suggested new policies that the Government is creating for the rental market, APPII recommends dropping the “IRS” tax rate on 5-year contracts, rather than 10 or 20 years, as has been proposed. The association president considers the shorter period to be more realistic in achieving the goal of stimulating the rental market.
Following similar moves in London and Amsterdam, the holiday letting firm announced that hosts in four key Parisian neighbourhoods will only be able to rent out their entire homes for no more than 120 nights per year starting in 2018. The restrictions will bring Airbnb into line with current local regulations. Paris is the platform’s largest city based on listings.
The consumer group, “Deco”, and the “PSP” warn of potential dangers with vacation rentals, especially when using the internet. Every year Deco receives dozens of complaints related to scams associated with holiday home lets. While the internet can be the dominant means of publicizing and reserving holidays, it is essential to use care, especially when making online payments.
There are more houses being sold today but high prices in central urban areas are pushing buyers out to the suburbs. Simultaneously, rentals are in decline. Letting accounted for 60% of real estate activity at the height of the crisis but has fallen sharply in the last two years. In 2016, lets accounted for just 25% of housing turnovers.