Renting X-ray: 23.6% of landlords have rental debts.

A recent study found that more than twenty percent (21.4%) of tenants did not implement the annual rent adjustment for 2024 at the established rate of 6.94%. This was one of the key findings of the seventh edition of the Lisbon Property Owners Association (ALP) Barometer titled "Owners' Trust." The survey, conducted from March 14 to 22, involved 525 property owners. Nearly a quarter of landlords have rental arrears at the end of the third quarter of 2023, and more than twenty percent did not update rental rates for 2024 according to the legally established rate.

Interestingly, almost half of the respondents (44%) expressed support for the creation of a right-wing bloc, believing that the first initiative of the new government will be to freeze rental prices.The cancellation of the rent freeze should be a priority measure.“The first weeks and months of the new term will be critically important for sending clear signals to property owners that the State has once again become a reliable partner,” notes ALP President Luis Menezes Leitano.

Luis Menezes Leitano emphasizes thatThe cancellation of the rent freeze symbolizes the restoration of landlords' trust.He also notes that independent organizations have calculated how significantly this decision negatively impacts private landlords each year, as they are not required to fulfill a social function that should be the responsibility of the State. According to Menezes,This Barometer shows that homeowners want fairness and balance.and also wish to be part of a solution that will provide more housing for everyone. This is important for the sustainability of the new political cycle.

What do the tenants themselves say in light of this data? According to the ALP survey results, more than 21% of property owners have not renewed their leases for 2024, and a third of respondents explained this by stating that they have agreements with tenants regarding a different coefficient.Fourteen percentthey preferred to set a different interest rate, expecting that tenants would not be able to meet their obligations, and10%They just kept the rental rates unchanged.

An important finding was that almost9%The respondents noted the sale of their properties that were previously rented out. This is further complemented by almost6%who have redirected their properties from traditional rentals to short-term ones, for example, for students or professionals. Believing that the real estate and rental market is becoming less and less attractive,50%respondents expressed such an opinion, and43%They consider it too bureaucratic and complicated to understand. More29%Respondents believe that there are many operational costs, and24%Still confident that this is a profitable and reliable market for investment.

Only2%Almost all respondents have signed contracts through programs like "Rent for Subletting." At the moment, almost24%Tenants are facing issues with rent arrears. Among them30.3%have more than six months of unpaid rent, and27.9%— from two to three months.

Please note thatThe profession of a tenant is becoming outdated.almost48.2%The respondents belong to the older age group (over 65 years old),33.9%of them are aged between 65 and 75 years, while only1%— youth aged up to 34 years. The market mainly consists of small owners, and51.4%respondents own up to five properties, while more than two-thirds of those surveyed76.4%) have up to ten objects. About70%Tenants have become homeowners as a result of inheritance, while more than a third have invested their savings in rental properties as part of their retirement plan.

In light of the new elections96%The tenants voted, of which66%supported right-wing parties. Among them48%They voted for the Democratic Right Party, and more.11%They preferred liberal right-wingers. Almost.43%respondents are satisfied with the election results, while45%They don't believe that the new deadline will be met. More46%Real estate owners seem to be giving the new government a "vote of confidence," responding "possibly" to the question about the duration of its rule.

In response to the question of what measure should be prioritized by the new government,20.2%respondents noted the need to freeze rental prices, while15.8%They would like to be treated as partners rather than as enemies. On broader issues, most owners...48.8%They wish to restore trust among owners and investors, while48%point to the need for reforms in the field of taxation.

The question of old and new leases remains relevant: more than half of tenants56.4%) signed contracts before 1990 ("frozen rent payments"). Most of these owners (56.9%) receives rent of up to 150 euros per month. More20%Respondents with these "frozen" contracts receive between 50 and 100 euros.