Demand outstrips supply in rental crisis

There is a dearth of housing supply for rent in the Lisbon property market according to the National Association of Landlords (ANP) and the Lisbon Landlords Association (ALP).

According to the two associations, the high demand and lack of supply will continue to put upward pressure on rental prices in the Portuguese capital.

The situation is causing some tenants to offer up to 12 months in rent up front to secure accommodation.

The situation is more commonly seen among foreign renters, particularly Brazilians. “They don’t have IRS returns to present which for many landlords serves as a guarantee when evaluating the financial capacity of the potential tenant to meet rent payments, and when they have cash upfront these tenants opt to pay a year’s rent in one go” one estate agent told the newspaper Jornal i.

However, the usual situation is for landlords to insist on three rents (two month’s rent and a deposit), but there are increasingly more landlords demanding four months payment (two month’s rent and two deposits).