Midterm Rental Contracts in Lisbon and Portugal: An Alternative to Short-Term Rentals
In recent years, short-term rentals (STRs) have been an attractive option for property owners in Portugal, especially in Lisbon, Porto, and the Algarve. However, recent regulatory changes, particularly the crackdown on STR licenses, have prompted many property owners to explore alternatives. One increasingly popular option is midterm rental contracts, which offer flexibility, steady income, and legal security.
Restrictions on STR
Why Midterm Rentals Are on the Rise
The Portuguese government’s restrictions on STR licenses, especially in densely populated urban areas like Lisbon, have made it difficult for property owners to continue offering short-term stays. The tightening of STR licenses, designed to protect housing affordability, has driven many landlords to turn towards midterm rentals, which typically last between one and 12 months.
Unlike short-term rentals, midterm contracts allow owners to avoid the hassle of securing frequent tourist bookings and managing rapid turnovers while still benefiting from a turnover cycle that refreshes every few months. These rentals are ideal for digital nomads, expatriates, or professionals on temporary assignments who need a home base for longer than a holiday stay but less than a traditional long-term lease.
Why Midterm Contracts
Benefits of Midterm Contracts
1. Monthly Turnover: Property owners can still enjoy a monthly rental cycle with midterm contracts, making them more predictable and manageable compared to short-term lets.
2. Consistent Income: With longer stays, midterm rentals offer more stable revenue, minimizing vacancies and providing a steadier cash flow compared to the more volatile short-term rental market.
3. Flexibility: Midterm contracts allow landlords to adjust rental conditions more frequently, providing the flexibility to adapt to market conditions and personal schedules. This can be particularly appealing in tourist hotspots like Lisbon, where demand varies seasonally.
4. Legal Simplicity: Given the growing regulatory pressures on STRs, midterm contracts provide an easier route to legal compliance, avoiding potential fines and complications related to short-term rental licensing.
Midterm Rentals and the Portugal Portfolio Approach
At Portugal Portfolio, we have adapted our services to support property owners navigating the changing rental landscape. Whether you’re looking to shift from short-term rentals due to new regulations or want to explore midterm leases as an additional income stream, we offer comprehensive property management that takes care of everything—from finding tenants to handling contracts and property maintenance.
Many of our properties in Cascais, Lisbon, and Estoril have seen increased demand for midterm rentals, particularly from remote workers and expatriates seeking fully-furnished homes for several months at a time. Our experience managing these contracts ensures that your property remains well-maintained while generating optimal returns.
WHy Us
Why Work with Portugal Portfolio?
1. Extensive Experience: With years of managing both short-term and midterm rentals, our team knows how to maximize your property’s potential. We ensure that your rental stays compliant with local regulations and is marketed to the right tenant demographics.
2. Property Management Services: From guest turnovers to maintenance, we handle every aspect of managing your property, ensuring a hassle-free experience for you as a landlord.
3. Targeted Marketing: Our properties are listed on high-traffic platforms, reaching both local and international audiences. With the rise in digital nomadism and temporary relocations, midterm rentals are in high demand, and we know how to capitalize on that.
Explore Our Midterm Rental Services
If you’re considering offering your property as a midterm rental in response to Lisbon’s STR restrictions, Portugal Portfolio is here to help. Visit our Property Management Page for more information on how we can assist you. To see examples of our properties available for midterm lets, check out our Active Listings
