Lisbon Landlords Signal Willingness to Enter Student Rental Market with Key Demands for Government Incentives
The Lisbon Landlords Association (ALP) has announced the results of a comprehensive survey indicating its members are prepared to make more properties available for the student rental market, a move that could address the national student housing shortage. However, this willingness is contingent on the implementation of significant fiscal incentives and protective guarantees from the government. The survey findings were released on Monday, outlining a clear path for mobilizing private property to solve a public crisis.
According to the statement from ALP's president, Luís Menezes Leitão, private landlords are a crucial part of the solution. He asserted that the government must create a favorable environment, stating, “It is essential that they are given fair incentives and adequate guarantees.” The survey, which gathered responses from about 10,000 associates, reveals that with the right policies, a substantial number of new rental units could become available. The data shows that while 51% of property owners are attracted by the flexible, short-term nature of student contracts, 49% are deterred by the perceived risk of property damage, a major obstacle to market entry.
The specific legislative and fiscal changes requested by landlords are clear. An overwhelming 87% of respondents identified tax benefits in both personal income tax (IRS) and municipal property tax (IMI) as the primary motivator for renting to students. Furthermore, 42% of landlords stated that the creation of a public guarantee system by the state to cover potential rent defaults would be an effective measure to stimulate the supply of student housing. This highlights a demand for risk mitigation as a prerequisite for participation.
The survey also addressed the issue of quality control and regulation. A significant majority of landlords, 64.4%, expressed their readiness to comply with minimum habitability standards, use official contract templates, and provide basic equipment in their properties. This compliance, however, is conditioned on their inclusion in institutional programs that provide the aforementioned tax benefits. This suggests a willingness to formalize and improve the quality of student housing in exchange for financial viability and security. Nearly half of the respondents (49%) would also agree to a voluntary certification system if it led to tax advantages.
Luís Menezes Leitão placed these findings in the context of the national education system, noting that Portugal has approximately 500,000 higher education students but only 15,000 beds in public residences. “It is evident that, perante esta realidade, os proprietários privados desempenham um papel essencial,” he remarked, emphasizing that supporting private landlords is indispensable for ensuring educational opportunities for young people from across the country and abroad.
In addition to tax incentives, the ALP is proposing a revision of current rental laws, specifically regarding security deposits. The association advocates for increasing the maximum allowable deposit, which is currently limited by law, to provide a more realistic financial cushion against potential damages or unpaid expenses. The ALP argues this change would enhance landlord protection and directly encourage more properties to be listed on the student rental market.
The findings from the ALP survey present a direct call to action for the Portuguese government and public entities. The association contends that there is a clear and tangible opportunity to expand the student housing supply through the private market, but the initiative now rests with policymakers to design and implement the necessary fiscal and protective measures to unlock this potential.
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