Proposed Change in the “Alojamento Local” (AL) Law

A new discussion has opened on housing problems, in large cities, based on the assumption that there is an excess of Alojamento Local (free-for-all) with short duration rentals, in the historic centres. The Government, therefore, accepts the creation of laws to regulate the local leasing market. In the political discussion the following proposals were launched by the parties:

1. The owner must request prior authorisation from the condominium to commence rental activity

2. Revokation of Alojamento Local license (license to rent out) - in case of repeated complaints from the joint owners - which implies the creation of a municipal supervision office to withdraw licenses and to prove the recurrence of infractions

3. To limit the holiday accommodation to 90 days per year

4. To limit the number of ALs allowed by each owner, proposing that in every four lodgings, one needs to be used for long-term lease

5. Hostels should return to the regime of “Empreendimentos Turísticos” - Touristic Developments

Luís Lima, president of APEMIP, states that "it is naive to think that by changing the AL laws, owners will direct their assets to the long-term rental market." He doesn’t agree with some proposals for limiting those who have already invested in purchasing a property and suggests:

1. An increase in the amount paid by the owner who rents out (as condominium expenses) to compensate for any inconvenience created

2. Creation of compulsory multi-risk insurance for housing to cover possible damage to common areas

3. The requirement of the signing of a term of responsibility for each guest to respect operating rules and any fines to be applied to non-compliant parties

Casas do Barlavento considers that the real impact of short-term leasing must be understood before limiting its activity. To realise that in places like the Algarve there has always been this type of accommodation which  co-exists in a balanced way with the hotel market.  The origin of this issue may be  misguided if you think that it was AL which helped economic recovery and boosted urban rehabilitation.