Over 7000 ‘pull plug’ on AL tourist rentals
Over 7000 landlords have requested suspension of their licences for Alojamento Local (short-term tourist rentals).
At the same time, the number of requests by property owners to join the previously booming regime has plummeted.
Say reports, the fall-off, in comparison to requests submitted in the run-up to last summer, is in the region of 40% ‘all over the country’.
But while no-one can tell what the 7000 landlords who have pulled out are doing ‘instead’, the overall impression is one of ‘relief’.
Says Eduardo Miranda, president of the association of AL in Portugal, “This reduction doesn’t worry us at all. In fact, it is healthy”.
In Lisbon, for example, the stampede by property owners to sign up for AL decimated the capital’s long-term rental sector – badly affecting university students and everyday working people and pensioners (click here).
Concern led to five Lisbon boroughs closing the doors to any new AL registrations – and this is what appears to have precipitated the slowdown generally.
Taking its figures from Turismo de Portugal, tabloid Correio da Manhã explains that between January and March this year, there were only 481 new AL properties registered, as opposed to 1,128 during the same two month period in 2018.
Miranda explains that in Lisbon competitivity has been so high that now “people are thinking twice” before considering AL as a line of business.
On a national scale, there are now 83,000 AL properties throughout the country, with Lisbon and Porto offering the lion’s share (18,000 and 7,500 respectively).
With councils being awarded greater powers to oversee the regime, CM adds that 3,220 licenses have since been withdrawn after owners were found to have ‘not complied with the rules’ in some way or other.
The overriding message in these new developments is that AL owners may be ‘returning to the traditional rentals sector’ which will come as a major relief to many nationals who have been finding it impossible to find a property even available for long-term rent, let alone affordable.