Navigating the Lisbon rental market can be challenging, particularly if you’re new to the city or from another country. Many encounter confusion about payslip validity, upfront costs, landlord requirements, and potential scams. This guide helps you navigate these tricky waters to secure the right place.
1. Understand the Reality: Lisbon’s Competitive Rental Market
Finding an affordable apartment in Lisbon can be tough. Rents in the capital are generally higher than in other parts of Portugal, although salaries tend to be higher, too. Increased tourism and a growing number of foreigners seeking to live here have made the process more difficult, with few standards. As a result, it’s vital to plan and be flexible about your search. Look at neighborhoods surrounding Lisbon like Setúbal, Odivelas, or Loures, which are usually more affordable. These areas may have hidden gems if you’re on a budget. It’s good to know that apartment hunting can be a marathon, so patience, research, and having a clear plan are key.
2. Determine Your Budget and Needs
Before you begin your search, be clear about your budget and what kind of place you need. Do you prefer a studio, or a one-bedroom or two-bedroom? Knowing what you can spend, and what your basic needs are will help you narrow your search efficiently. If your limit is 1,000€, focus on that amount. Remember, location plays a major role in rental prices so that’s one important decision you need to take. Once you are clear, start looking for apartments that fit your budget on online portals.
3. How to Begin Your Apartment Search in Lisbon
Start by exploring various online platforms like Uniplaces, Idealista, and Imovirtual. Consider using a real estate agent (REMAX or ERA). In Portugal, real estate agents mainly focus on advertising and showings, and your rental agreement will typically be with the property owner, not them. Once you find something, don’t hesitate to visit them in person and clarify any doubts during these visits. Take note of where local grocery stores and public transportation are. It is also important to gather all required documents and submit them to the landlord along with your offer to rent.
4. Decoding Apartment Types (T0, T1, T2, etc.)
Portuguese apartments are labeled differently from what you might be used to. Here’s what they mean:
- T0: An open-plan space where the living room, bedroom, and kitchen are combined, like a studio or loft. Great for students or those who like a combined space.
- T1: A one-bedroom apartment with a separate bedroom and living area, providing more privacy.
- T1+1: Similar to a T1 but with an extra, small space (often without windows), great for storage or a small office. Not for a real bedroom.
- T2, T3, T4 and T5 The number refers to how many bedrooms the property has. T2 and T3 are more common, accommodating families. Also, note that “rés-do-chão” are ground floor units, sometimes with small patios, and “caves” are apartments that sit below street level. Pay close attention to a property’s energy rating as this affects utility costs; “A+” is most efficient and “F” least efficient. Consider properties with double-paned windows for energy efficiency and noise reduction.
5. Anticipate Rental Costs and Furnishing
Rent prices vary a lot based on location and property type. For a T1 (50 sq. meters), expect to pay roughly €830-€1,425 monthly; a T3 (100 sq. meters) is approximately between €1,660-€2,850 monthly. Apartments with no furniture typically cost less than those that are fully furnished. You could find it less expensive overall since you purchase what you need. But it will also mean that you have the freedom to decorate to your taste. However, furnishing a home can run you between €3,000 to €22,000, depending on the size and quality. Consider used items from social media marketplaces or visit local shops to make your budget stretch further.
6. How to Use Online Rental Portals
Online portals are great resources. Here are some key platforms:
- Uniplaces: Good for securing a place before you arrive, and some properties include utility costs in the rental price.
- Idealista: A must-use site, allowing you to map your preferred areas. You can set alerts for new listings that fit your preferences.
- Casa Sapo: Similar to Idealista, it has options from both agents and owners.
- Imovirtual: A valuable portal with many listings from agencies and individuals.
- Airbnb: Useful for temporary stays but can get costly. Great for furnished options and shorter periods.
Also consider exploring the private Facebook Group by Worktugal for networking opportunities, or our Telegram group to stay engaged.
7. Understand Lease Agreements, Legalities and Fiador
A rental contract is crucial to understand, since it protects both you and the landlord. In Portugal, the contract must be registered with the Finance Authority. Key elements include the full names and NIF of both the landlord and tenant, a thorough description of the apartment, duration of contract, rent amount and frequency, details of required deposits, obligations, termination terms, and conditions. Ensure the contract complies with Portuguese law to protect both sides. It’s also worth it to speak with a real estate lawyer before signing to be safe.
After that you must register the contract online via the government’s “Portal das Finanças,” where you’ll need your NIF, choose your property, identify parties, and pay a stamp duty ( Imposto do Selo), with costs depending on your annual rent. A ‘Fiador,’ a guarantor is often requested. The Fiador would have to be a Portuguese national that has a clear tax and financial history. The documentation they have to submit would be similar to the tenant. Without a guarantor (fiador), owners may require a higher deposit upfront.
8. What Are Your Rights and Obligations as a Tenant
Tenants in Portugal have the right to:
- Temporary rehousing if the property needs urgent repairs,
- Get reimbursed for urgent repairs not done by the landlord.
- Make small home changes such as putting up pictures and shelves
- Live with family, spouse, relatives, and accommodate up to 3 guests.
- The right to buy the place if the landlord decides to sell, given you’ve lived there at least three years
- End the contract by giving a notice of between 60 to 120 days. Tenants also have the obligation to pay rent, any condominium fees, abide by community rules regarding cleanliness and noise levels, and respect other residents.
9. Navigate Fiador Requirements and Caução (Deposits)
A “fiador”, or guarantor, is often requested, who also assumes responsibilities and must meet the requirements needed. This is particularly tough if you are a foreign citizen. The fiador would have to provide similar documentation as you, their personal identification, their NIF, income proofs and their IRS. Since finding a fiador may be difficult if you are a foreign national, expect to pay a higher security deposit ( caução), which could be between 3 and 6 months or up to one year. You’ll see that these requirements aren’t uncommon, particularly when the lease applicant is not a Portuguese citizen.
10. Choose the Right Neighborhood in Lisbon
Consider the following options when choosing your neighborhood:
- Estrela and Lapa: Upscale areas with a lively atmosphere, well-connected transport links, and various local businesses.
- Santo António and Príncipe Real: Offer great locations with access to the bustle of the city and also calm and nature-filled locations.
- Rato and Amoreiras: Nearby to Principe Real, these locations often provide larger apartments for families, though prices may be higher.
- Saldanha, Picoas, and Arroios: Energy filled areas of town that are both residential but also have a buzz with many restaurants and parks.
- Alcântara: This area, which is close to Belém, is less touristy, providing a calm and peaceful vibe similar to small seaside towns in Brazil. However, public transport is less accessible. To get the best neighborhood for your personal needs, be sure to check other resources, as well. Be mindful of factors that affect your quality of life, such as easy access to transportation, and bike paths.
Additional Tips and Precautions for Your Lisbon Rental Search
- Time Management Set aside enough time to do the research, and do not feel pressured into making quick decisions.
- Financial Prep Prepare a solid amount of financial savings to ensure that you can confidently pay for your security deposit and at least your first month or two’s rent.
- Temporary Stays If you are unable to find the right place before your arrival, consider settling into temporary accommodation, where you have time to visit potential properties in person.
- Regular Monitoring The rental market in Lisbon moves fast, with apartments getting rented quickly, so keep monitoring online real estate portals.
- Reach out and book visits: Reach out immediately if an apartment catches your attention. Do not hesitate and make a move if a place is right.
- Checklists: Before you decide on a place make a detailed checklist highlighting all of the details about each property you’ve visited to ensure your final choice is the best possible.
- Scams: Never ever make any payments before visiting a place in person. A common scam is asking for payment before a showing. Agents and owners will never do this. Payments will only be required once all parties are certain and have signed a valid rental agreement.
- Thorough Review Be sure to read contracts carefully, checking the payment and details of all deposits and rent payments, plus the full details in writing and in plain English or your preferred language of choice.
- Energy Classification and Insulation: Always take note of the energy classification of the apartment as well as the insulation level to prepare for heat or cold periods and if that matches your own tolerance and the lifestyle that you are after. Also, make sure to get a good handle on where the property faces and if it has more access to the sun during the day. South facing buildings provide sun all day round, and less chance of damp or mold.
Sources: Pacola, A., Cortés, L., & Leite, R. (2024, August 8). Apartamento para alugar em Lisboa, Portugal: Consiga o seu. Eurodicas.
