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Changes to licensing of short term rentals AL 2018

05 Dec 2018
Changes to licensing of short term rentals AL 2018
Legislação
As of the end of October there were a number of changes to obtaining and keeping a AL license on your property, find out about all of them....
Changes to licensing of short term rentals 2018
The changes were initially controversial but have ultimately given more powers to condominiums (tends to be more of an issue in Lisbon where over a 3rd of the city centre properties have an AL license, making it very difficult to find long term rentals for residents) and councils.
Find out below some of the changes:
  1. ALL TYPE OF TEMPORARY RENTAL PROPERTIES WILL BE AL LICENSED
Whether you are providing temporary accommodation to tourists or renting a room in residence it needs to be AL licensed, hostels, apartments and lodging rooms are required to have an AL plaque indicating this.
 
2. CONDOMINIUMS NOW HAVE POWERS
• Authorization for hostels
If you are looking to set up a hostal in a predio horizontal (where there are other owners in the same building or resort) you must now seek authorization from the other owners in the condominium. This is because hostals are seen as far greater disruption to residents.
• Request AL closure
In addition to authorizing hostels, condominium owners may also oppose the granting of an AL license in a condominium or request the cancellation of an AL that is already in place in an apartment, but only "if there are repeated acts that disturb the normal enjoyment of the building to the condominium owners". This opposition has to be voted by more than half of the tenants and has to be communicated to the local authority. (again this is more relevant for Lisbon where there are more residential condominiums which have had problems with short term rentals)
• Increase contributions
The owner of an AL within a building/condominium may have to pay a further 30% annual condominium fee, if the joint owners so agree.
 
3. COUNCILS ALSO GAIN POWERS
• Supervise, suspend and cancel
In addition to the ASAE (health and safety department), the City Council can also monitor compliance of the AL regime and may also determine the closure or temporary suspension of a license. This suspension "may be enacted, for example, whenever a failure to comply with applicable legal provisions may jeopardize users' safety or public health," noting, however, that this "temporary ban does not originate" the cancellation of the AL registration.
• Approve and reject new registrations
 
So far, to register an AL it was enough to make a prior communication with the Tourism of Portugal, but as of now all the registrations have to go to the camera first and after 10 days (or 20 if it is a request for a hostel) a decision will be given on a new registration.
4. WHAT CHANGES ARE THEREFOR EXISITING LICENSES?
The AL’s that already exist remain as they are, but have two years from the law was passed to incorporate the charges - until October 23, 2020. This includes a Multi risk insurance, AL plaques and additional contributions to condominiums (should the condominium agree on this).
 
OTHER CHANGES
Deadline for reporting AL closure decreases from 60 to 10 days
Maximum occupancy of the establishments is maintained: nine rooms and 30 users.
Local Accommodation will be obliged to have an information book (house rules, important contacts, local information), manuals for electronic equipment, condominium rules, owners/managers contacts, license number and in at least four languages: Portuguese, English and two foreign languages.
Multi risk insurance – (building, contents and liability)
Fines in case of default increase from € 2,500 to € 4,000 in the case of a natural person and € 25,000 to € 40,000 in the case of a company

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