The rise in short-term rental accommodation is becoming increasingly visible throughout the country. However, its creation and maintenance require specific rules and laws. Learn more about the best ways to operate if you have or plan to have a local accommodation business. 

Local accommodation: what is it?

Local accommodation is considered to be a space that provides accommodation services in exchange for payment, but that does not meet the requirements of a tourist establishment. 

What are the types of local accommodation?

Within local accommodation, four main types stand out:

Housing: A dwelling is defined as a self-contained, single-family building; 

Apartment: An autonomous unit within a building, where independent use is permitted.;

Lodging establishment: Accommodation consisting of rooms in an urban building. This place can also be considered a hostel.

Rooms: The rooms are located in the landlord's residence, with only the room being the accommodation in question. 

What are the rules for local accommodation?

Anyone wishing to run a local accommodation business should take certain rules into account, namely: 

• The presence of a complaints book in Portuguese, English, and two other foreign languages on site;
• The availability of the owner's telephone number;
• Existence of an identification sign for the local accommodation. 

What are the requirements for local accommodation establishments?

To create a local accommodation establishment, there are rules that its owners must follow: 

• Proper storage and operating conditions;
• Connection to the public water supply;
• Availability of suitable furniture and equipment;
• A security system that provides privacy;
• The existence of hygienic conditions. 

What are the legal steps to obtain a license for local accommodation?

For legal compliance with local accommodation regulations, after registering with the Electronic Single Window, owners must have essential documents with them, such as:

• Identification document code or access code to the permanent registration certificate of the owner of the site's operating license;
• Terms of responsibility;
• Copy of the urban property registration document;
• Copy of the lease agreement;
• Copy of the declaration of commencement of activity;
• Minutes from the condominium owners' meeting, authorizing the existence of the accommodation;
• Type of establishment of the accommodation in question. 

How to open a local accommodation business?

According to the regulations for local accommodation, it is mandatory that the space for rent be registered. To proceed with the registration, it is important to notify the mayor of the municipality in question in advance, through the Electronic One-Stop Shop.  

For this purpose, the tenant must have with them their identification, the name of the premises, its capacity, and the date of opening to the public. They must also have with them a document attesting to the suitability of the building, a simple copy of the commencement declaration submitted to the Tax and Customs Authority. 

The City Council will have to inspect the site and verify if it meets all the requirements. If so, only after this inspection is the accommodation ready to be used. 

Local accommodation law: what is it?

A Law No. 56/2023, of October 6 This law establishes rules regarding local accommodation. It covers topics such as the duration of licenses, extraordinary contributions on local accommodation, and the expiration of inactive registrations. 

Legal Requirements for Local Accommodation Owners

When creating a local accommodation space, there are legal requirements to consider: 

• Comply with mandatory insurance requirements, namely fire insurance and civil liability insurance, which protect the building against material damage or liability to third parties;
• To meet the basic requirements for owning a local accommodation establishment;
• Proper treatment of Taxes on local accommodation. 

Strategies for Dealing with Legal Issues in Vacation Rentals

To avoid problems in the short-term rental business, the best approach is to prevent them from arising in the first place. To do this, it's important to follow these steps: 

• Entrust the management of your business to professionals in the field;
• A quick response to any complaint, in order to prevent others from arising;
• Stay up-to-date on the best accommodation options; 
• Pay attention to guest feedback. 

Can a condominium prohibit short-term rental accommodation?

Yes, in situations where local accommodation is located in a part of a building, or in an urban building suitable for independent use. If more than half of the condominium owners' assembly opposes the practice of short-term rentals, it can be suspended. 

What types of legal problems are common in the short-term rental industry?

The problems arising from local accommodation are essentially related to licenses for this activity or financial issues, namely the payment of taxes.

In what situations should I seek legal advice for my vacation rental property?

From the moment you decide to start operating in this area, it's important to have a lawyer specializing in local accommodation. A professional in this field will provide assistance with legal matters related to the creation and maintenance of local accommodation.

No Lawyers in Braga You have access to specialized professionals who can help in this situation. 

What is the role of a lawyer specializing in local accommodation?

Legal advice for local accommodation is one of the main functions of a lawyer in this area. real estate law.Local accommodation contracts, the establishment and registration of a local accommodation business, lodging contracts, or monitoring all aspects of local accommodation operation are some examples. 

What are the main regulations that owners of local accommodation should be aware of?

Any regulations related to tax matters should be taken into account by owners of local accommodation. VAT code or decree-laws such as Decree-Law No. 220/2008, which is based on the maximum number of people that can be in an accommodation. 

How can I ensure that my vacation rental property complies with the law?

The best way to ensure that local accommodation complies with the law is through inspections. ASAE (Food and Economic Security Authority), the City Council, and the Parish Council are the main regulatory authorities for good practices in local accommodation. 

Conclusion 

A lawyer specializing in real estate law is the best option you can have in cases involving short-term rentals. Since you have to deal with both legal and financial issues, a lawyer is an advisor you can have on hand to resolve problems.