Finding a 12-month Rental Property in Portugal for D7 Visa Application This help sheet focuses on how to find a 12-month rental property in Portugal. We wasted time and money during our D7 visa application process, so I hope that by reading this, you’ll save valuable time and resources. Unfortunately, you will need to have a rental agreement in place to be able to submit your D7 visa application, in your own country, and this may probably result in your rental property remaining empty for some time. We found our D7 application process arduous, we wasted time and money, so I created a help sheet to help others - this can be downloaded from - https://www.live-long-prosper.com/p/d7-visa-help-sheet.html We were advised by our emigration consultant that it is a requirement for the D7 application process to have either a sponsor, or 12-month property rental agreement. Disclaimer: We do not accept any liability for any problems you incur, advice given here is provided as an example of our experiences, and everyone has different circumstances so we recommend that you take professional advice, particularly since the rules applying to emigration to Portugal are continually changing. Copyright: This advice sheet cannot be copied or published in any way without the permission of Michael Glanville mike.eurographic@gmail.com If you find this help sheet useful, please share this link https://www.live-long- prosper.com/p/d7-visa-help-sheet.html with others on social media - thank you. We hope that you will visit our YouTube video channel, https://www.youtube.com/ channel/UCDA0p9Z3HxAYwP1pmy80xlg Live-Long-Prosper @how-to-retire-early - please subscribe for updates, Like our videos to help our channel grow, and ring the bell for notifications of new videos - obrigado. D7 Visa Requirement Unless you are lucky enough to have a sponsor, you must have a copy of the 12 month rental agreement in Portuguese language, countersigned by the landlord, and you the tenant, on each page, to submit for your D7 visa application and interview. In the past I believe, 6 month rentals were acceptable but no longer, so you might find conflicting information on the Internet. It is my understanding that camper-van and AirB&B / hotel addresses are not acceptable. The exact wording requirement as we were advised is: “The landlord is to provide a lease agreement signed for at least 12 months and register the agreement in Financas (Model 2)”. We requested an additional clause for the agreement to stipulate that should we wish to purchase a property, that if we gave the landlord 3 months notice, that we could terminate the agreement early after 8 months. This was accepted by our landlord. In our experience, we found it particularly difficult to find a furnished 12-month rental property in the Algarve, since most landlords prefer to rent out their properties via AirB&B during the summer season. I have heard that the tax paid on longer term accommodation is higher than shorter term properties, perhaps there is a tax threshold and this is a disincentive for landlords to offer long term rentals. Big Regret As we had adopted a “belt and braces too” approach, we paid an emigration consultant who offered the following service: Looking online for places to rent (according to our criteria) Narrow down the search, by sharing links of listings. Visit up to 5 houses - this proved to be impractical since consultant lived in Lisbon, and we wanted accommodation in the Algarve. Negotiation with the landlord. Review of the rental agreement (we found this useful). Contract of utilities (water, electricity, gas, Cable TV and Internet) We paid the landlord directly for these services. This service cost € 750+VAT. The consultant was based in Lisbon, so to visit the houses would incur additional travel expenses and too much time. In hindsight we wished we hadn’t agreed to pay for these services. There is a major problem with this model if you are looking for property in the Algarve. Ok, things started out great, we received 15 links to properties listed on Idealista. See https://www.idealista.pt/ The major problems in the Algarve in particular and Portugal in general 1/. Most landlords in the Algarve can make four times the rental income during the holiday season which runs from June until September, than they can for the rate they can charge per month for a 12 month rental. For example, our 12 month rental property cost us € 750 per month for a T1 one bedroom apartment - in the summer season, the identical apartment next door rents out for € 70 per night on AirB&B. AirB&B properties are not acceptable for the D7 application, even if you could afford this budget. 2/. Currently there are 10 times more people searching for 12-month rental properties in the Algarve, than there are properties available. Properties are being snapped up within 2 days of of them appearing on the market. Hence, expecting a consultant to be able to travel from Lisbon to the Algarve to view 5 properties is, in reality, a non starter of an idea, it is just not feasible. 3/. You should be cautious before committing to properties advertised on FaceBook groups and Internet if a property seems too good to be true. Scammers have been known to impersonate property owners in order to try and steal holding deposits. Ensure that the landlord is genuine, we recommend working with bonafide estate agents / realtors / rental agents. 4/. There is no point you searching for rental properties on Idealista https:// www.idealista.pt/ or Rightmove https://www.rightmove.co.uk/overseas-property/in- Portugal.html because you are competing in the Algarve with 9 other D7 applicants. You could set up alert notifications from Idealista, but by the time you have been informed of an opportunity, so have others, so to beat the crowds, it is perhaps best to work with active realtors within the area you wish to reside. The best approach is to identify reliable realtors through the FaceBook groups listed below, explain your situation and requirements and request they find a suitable property, and prepare an acceptable rental agreement. Let them know that you are serious, and able to make a fast decision. Be flexible - perhaps a 1 bedroom restricts your ability to invite friends to stay, but enables you to qualify for the D7 application visa. A low budget 1 bed apartment may not be your ideal home, but once the SEF appointment is finalised, you will be free to find more suitable accommodation. Our experience We got all excited about a T2 (2 bed) apartment available in Lagos advertised for € 1300 per month. We contacted our consultant to check the lease agreement terms offered by the landlord, but by the time they had checked everything was ok, the landlord raised the price to € 1350 and we lost the apartment to another bidder - we were gazumped, the opportunity had become an auction. The landlord never even had the decency to inform us, we just discovered the price hike on Idealista. It was an unpleasant experience. There is no point wasting money by paying consultants who don’t reside in your immediate area. We paid € 750 plus VAT for service that didn’t really benefit us other than to check that the rental agreement was acceptable. We lost time, and we lost opportunities. We eventually found a T1 property through our own contacts. Our suggestion 1/. Visit FaceBook groups listed below and submit a post that you are looking for recommendations for realtors that handle 12 month rental properties in the area that you wish to reside in. See list of FaceBook groups at bottom of this help sheet. Once you have established the name of a reputable realtor, contact them to inform them of your requirements. You will need “The landlord is to provide a lease agreement signed for at least 12 months and register the agreement in Financas (Model 2)”. You might negotiate a get out clause to terminate the agreement after 8 months, giving 3 months notice to the landlord after the 5th month, if it is you intention to buy a property at a later date. However, if this is a deal breaker, it is perhaps a good idea to live in an area to gain experience before you purchase a property. If you do discover a dream home that you wish to buy before your rental period elapses, then ofcourse you you’ll need to honour the contract. It might be beneficial to remain in a rental property, if you intend to make improvements to a property that you wish to buy. To secure a rental property • Ensure that the realtor can provide a virtual viewing. • You should be ready to make a decision within 2 days, or risk losing the property. • This will require you to virtually view the property online through the Internet - it is not feasible to visit the area on scouting trips unless ofcourse that you can commit to secure a property immediately during your visit. Scouting Trips If you only have limited time, you might stay in an AirB&B or hotel, but if you have a month or two or three, furnished properties are available to rent from € 650 per month during September to May. Search FaceBook groups below for short term furnished rentals. Short term stays helps you to get a feel for a place before you buy. Buying a Property Do you want a price estimate for a property you've seen on idealista? You can look at the bottom of any property published on idealista and click on "Buy valuation report” What is included in the PDF report? • Property price estimation for sale and rent. • Information about the area. • Properties compared. • How do they create it? • They compare similar properties. • They analyse the price evolution. • They cross-reference data from the area. Here is an example. It is written in Portuguese. https://st3.idealista.pt/static/pt/pdf/ shoppingcart/Exemplo_de_estimativa_de_preco_de_imovel.pdf?20221209104931 Global Warming and Forest Fires In Portugal 2017, 141,000 hectares decimated by fire and 64 lives lost. The fact that eucalyptus trees make up over a quarter of the country’s forest cover was considered a significant cause for the rapid increase of deadly fires. Eucalyptus trees grow fast and produce more timber, but they require a lot of water and can drain soil of vital nutrients. The bark and sap of the fast-growing eucalyptus are highly flammable and add fuel to the already raging fires. Most forest fires happen in the north and central areas of Portugal, less fires occur in the Algarve region since there is less vegetation to burn. Many fires are started by people, some by accident, some intentionally by arsonists. In the past, mistakes have been made, highly flammable eucalyptus trees have been planted, invasive mimosa trees have been allowed to flourish after forest fires to smoother native trees. Land mismanagement is often to blame, agroforestry organisations prefer the planting of indigenous tress. Before you rent or buy a property, be aware of local potential fire risks. If you are worried about forest fires in Portugal, I suggest that you download the fotos.pt smart phone application which during summer months, shows where forest fires are happening, how big the fires are, how many emergency vehicles are involved etc. Flooding Be aware of potential flooding risks. Video showing forest fires in Portugal: https://www.youtube.com/watch?v=4r4E9H6tfZE&t=55s You might find this Expats Portugal help group useful https://expatsportugal.com/ List of Municipalities in Portugal - Popular Areas https://en.wikipedia.org/wiki/List_of_municipalities_of_Portugal Albufeira Algarve Almancil Coimbra Lagos Lisbon Loule Obidos Quinta do Lago Santarem Sao Bras de Alportel Silver Coast Tavira Vilamour Idealista Area Reports in the Algarve Almancil https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/loule/almancil/ Alvor https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/portimao/alvor/ Budens https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/vila-do-bispo/budens/ Estombar & Parchal https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/lagoa-algarve/estombar-e-parchal/ Faro https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/faro/faro/ Ferragudo https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/lagoa-algarve/ferragudo/ Lagoa & Carvoeiro https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/lagoa-algarve/lagoa-e-carvoeiro/ Mexilhoeira Grande https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/portimao/mexilhoeira-grande/ Monchique https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/monchique/monchique/ Porches https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/lagoa-algarve/porches/ Portimao https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/portimao/portimao/ Sagres https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/vila-do-bispo/sagres/ Silves https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/silves/silves/ Tavira https://www.idealista.pt/media/relatorios-preco-habitacao/venda/faro/tavira/tavira/ Facebook Groups listed in order of number of members Join a Facebook group (s) and post that you are looking for recommendations for realtors who handle long term rentals in the area you wish to reside in. Moving to Portugal - https://www.facebook.com/groups/moving2portugal Expats in Portugal Q&A - https://www.facebook.com/groups/expatsinportugalqa Expat Property Portugal - https://www.facebook.com/groups/expatpropertyportugal Americans & FriendsPT - https://www.facebook.com/groups/americansandfriendsPT Everything and Anything Algarve - https://www.facebook.com/groups/ everythingandanythingalgarve Expats in Algarve - https://www.facebook.com/groups/1575242979441437 British Expats in Portugal - https://www.facebook.com/groups/265570920476558 Expat Buy / Sell / Rent Property in Portugal - https://www.facebook.com/groups/ 885407198197444 Expat community Portugal - https://www.facebook.com/groups/expatportugal Property for sale/rent in Portugal - https://www.facebook.com/groups/ propertyforsalerentinportugal Long Term Rentals Algarve - https://www.facebook.com/groups/ LongTermRentalsAlgarve Properties for rent or sale in the Algarve - https://www.facebook.com/groups/ propertyandlandrentalalgarve Algarve Property for Rent or Sale - https://www.facebook.com/groups/ algarvepropertyforrentandsale LONG TERM properties ALGARVE / ARRENDAMENTOS de propriedades ALGARVE - https://www.facebook.com/groups/FreeGroupLongTermRentalsAlgarve Alvor Portugal - https://www.facebook.com/groups/1226682227365251 Property for Sale And Rentals in Portugal - https://www.facebook.com/groups/ 421877711311859 Portugal - The Good Life - https://www.facebook.com/groups/1432271143463019 Portugal Properties - https://www.facebook.com/groups/propertiesportugal Long Term Rentals Portugal - https://www.facebook.com/groups/279826126432137 Algarve Winter and Long Term Letting ( NOT HOLIDAY LETS) - https:// www.facebook.com/groups/1657084254359514 Rent in Portugal - https://www.facebook.com/groups/RentInPORTUGAL Expats living in the Algarve - information share - https://www.facebook.com/groups/ 1699007977035475 Rentals Algarve Long Term - Low Cost - https://www.facebook.com/groups/ 264421017834298 Expat Community Funchal Madeira Portugal - https://www.facebook.com/groups/ 2325180230845145 Long Term Rentals West Algarve - https://www.facebook.com/groups/ 471557939866164 East Algarve Long Term Rental - https://www.facebook.com/groups/ 114052362542035 If you found this help sheet useful, please share this link https://www.live-long- prosper.com/p/d7-visa-help-sheet.html with others on social media - thank you. 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