Conclusion of a long-term rental agreement
The rental conditions here are different compared to other countries, especially in the Algarve.
The lease is a chapter in itself. "Finding" a long-term rental in the Algarve is a little more difficult than in the north of Portugal or the EU.
At the expense of tourism, from which the Algarve "lives", and the high turnover of people, the conditions for concluding a rental agreement for 1 year or more are relatively strict!
What will they most often ask of you (applies especially to real estate agents... Private owners may have their own specifics):
- proof of income. As a rule, the rent must not be more than 75% of your income
- first and last rent in advance
- 2x advance in the amount of 1 month's rent, so-called deposit
If you decide to live in a rental for €1,000/month, prepare €4,000 to begin with and you haven't even sat down on the couch yet, and then also the fact that your income must be at least €1,250, preferably €1,500.
If you conclude a rental agreement directly with the owner, the entry conditions may differ from owner to owner - for example, only 1 deposit in advance or proof of higher cash in the bank account.
I can't judge the rental conditions in the center of Portugal (Lisbon) or the north, but in general it can be said that the more desirable the location (tourism/city), the stricter and more demanding the conditions are than the countryside.
Why is that so?
The Algarve is a multicultural area where many people from Morocco, South America (Brazil, Argentina), Europe, Canada, the USA and Indonesia live. In order to find a place to live, these people will sign a disadvantageous rental agreement at the beginning and then within 2-3 months, as soon as they find better conditions, they will gladly move out. Therefore, the conditions regarding the conclusion of a long-term rental agreement (1 year or more) are stricter, regarding the documentation of the amount of income and increased expenses at the beginning. The owner wants to be sure that you will stay there for the year, pay and not set up an African tent outside the city where you will move.