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Maximise your rental income!

10 Compelling Reasons to Rent Out Your Property in Lisbon: Maximize Your Investment with The Upperkey

Updated: May 13

There are different ways to invest in property in Lisbon. Many investors choose short or long-term rentals while others invest in commercial properties. Some buy holiday homes they have access to whenever they like throughout the year. If you already own a property in Lisbon, renting it out could be a great option for you (think Airbnb management Lisbon). Here are some reasons why you should consider doing it. Airbnb stays in Lisbon, Portugal are growing in popularity and you could soon be on the path to becoming one of the best Airbnb Lisbon hosts.

Representing the different investment opportunities in Lisbon's real estate market
Investment opportunities in Lisbon and exploring property options.

1. High Demand

There is a high demand for accommodation in Lisbon. This is for two main reasons: tourism and government incentives. Lisbon is one of the most popular tourist destinations in Europe. First, it has very long summers and a warm winter making it a great place to visit throughout the year. Second, it is one of the few cities that have beaches.

The Portuguese government has put incentives in place to attract startups to the country. This has attracted a lot of young entrepreneurs who all need places to stay. This means there is a high demand for property, including short and long-term rental properties.

Such high demand means a high rental yield for property owners who choose to go this route, making renting out a great income generator.

2. Passive Income Source

Instead of having the property sit for some time, you could rent it out and let it become a source of passive income. This means a recurring income that requires little effort to maintain. As the property’s owner, you will still be required to have a hand in its maintenance and upkeep, so the property will provide mostly but not fully passive income.

You will also need to think about things like expenses, but these should be predictable once you have been renting the property for some time. Alternatively, you could let a property management company like Upper Key manage the property for you. This will turn it into a fully passive income generating property.

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3. It Can Make Owning The Property More Affordable

Owning a property can be very expensive because of the maintenance involved as well as other expenses you need to think about. It is up to you to ensure you are keeping up with all these as part of taking care of the property.

However, doing so can get expensive depending on the type of property you own. Additionally, you might be paying for maintenance and other things when you are not even using the property for large chunks of the year.

Renting it out can help offset some of these expenses. You can choose to take advantage of the seasonality of Lisbon by renting out the property for higher rates during the peak season and lowering the rates when the number of tourists decreases. This is a much better option than leasing out to a single tenant for this period.

Alternatively, let a property management company like Upper Key take care of everything for you. All you need to do is get in touch with them, let them visit the property, and wait for them to tell you how much income you can expect.

4. Incentive to Maintain and Improve the Property

You already know that your renters will expect a well-maintained property. This means you have more incentive to maintain and improve it than if you only lived in it for a portion of the year.

Also, having the home occupied all the time and having housekeeping there can help you find out if there are any issues with the property. This allows you to take care of these issues before they become significant issues that demand major repairs.

In addition to giving your guests a better experience, maintaining and improving the property also improves its value. This can be very useful for those looking to sell in the future.

The benefits of maintaining and improving properties for both owners and guests
The value of property care and benefits of maintaining and improving.

5. It Allows You To Choose The Best Time To Sell

It may come a time that you need to sell the property. Perhaps you would like to invest in something else or do not want to keep maintaining it. Sometimes, you may think of doing so when market conditions are not the best. In such cases, renting allows you to keep making money on the property while you wait on the market conditions to improve.

6. Property Value Appreciation

In addition to helping you hold the property while you wait for the market to improve, renting out your Lisbon property also allows you to let the property appreciate enough before selling. The Portuguese economy is robust and thriving at this time and the demand for property remains high. This means your property is already appreciating and renting ensures a steady income while it does.

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7. Favourable Taxation

In contrast to other countries., taxation on short-term rentals in Portugal is very favourable. The simplified regime allows for only 35% of the total rental income to be taxed. This is with the understanding that the rest of the income will be used on maintenance and improvements.

However, there are some things to keep in mind. First, the rate of taxation will depend on whether you are a resident. Second, it will depend on how much you make on the property.

Third, it depends on the length of the rental term. Long-term rentals typically attract higher taxes than short-term rentals.

8. It Can Help With Investment Diversification

You may already have a diversified portfolio that includes investments like bonds and stocks. Renting out your property allows you to diversify your investments further even if you did not initially mean for it to be an investment.

Due to the growing economy and high demand for property, renting out in Lisbon can add a layer of protection and hedge against risk.

9. Renting Ensures its Security

If you own property in Lisbon but wish to travel for work, you will be forced to leave the property empty, especially if you do not live with someone else. Although Lisbon is one of the safest cities in the world, renting out the property will give you peace of mind in knowing the property is less likely to be vandalised with someone living in it.

The comfort of knowing your property is safe and secure with renters in it
Safe and sound, the comfort of renting out your Lisbon property.

10. It Saves You Time

Managing a property is very time-consuming. Renting it out through a property management company like UpperKey means you do not have to worry about how much time you spend managing it.

Trusting such companies will also save you from a lot of nuisance because you do not have to deal with tenants directly.

If you own a property in Lisbon, there are numerous reasons why you should consider renting it out or allowing it to be managed through a Lisbon rental agency. Perhaps the most important is that it can become a source of passive income. Renting it out, especially through a property management company, can also save you time and headaches.


Determine your property's rental value with UpperKey as your tenant

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