Lisbon Student Residence Illegally Converted to Hostel: A Warning for Short-Term Rental Investors

Lisbon Student Residence Illegally Listed as Hostel in Benfica

A student residence in Lisbon's Benfica district, intended for public university students, is being marketed to tourists as a hostel for August, yet the property reportedly lacks the required Alojamento Local (AL) license for short-term rentals. This development is a critical red flag for foreign investors in the AL market, highlighting the significant risks of non-compliance with Portuguese tourism regulations.

The situation at the Benfica-Calhariz University Residence underscores the importance of due diligence. Operating an AL unit without a valid license can lead to severe penalties, including heavy fines and immediate closure of the establishment. "This is a cautionary tale for any investor," warns a Lisbon-based real estate lawyer. "The authorities are cracking down on illegal rentals. Ensuring your property has a valid, registered AL license is not just a formality—it's essential for protecting your investment and avoiding legal trouble. The fact that a public institution is involved makes this case even more alarming and likely to trigger increased scrutiny across the board."

• Verify the AL License: Before purchasing any property intended for short-term rental, you must verify its AL license status through the official RNAL (Registo Nacional de Alojamento Local) database. Do not rely on the seller's claims alone.
• Check Municipal Restrictions: Be aware that some areas in Lisbon have 'containment zones' (zonas de contenção) where new AL licenses are restricted or banned. Confirm the property's location is not in such a zone.
• Understand Condominium Rules: Even with a valid AL license, the condominium (if applicable) can vote to prohibit short-term rentals within the building. Review the condominium regulations thoroughly.
• Engage Legal Counsel: Work with an experienced Portuguese lawyer to navigate the complexities of AL regulations, ensuring your investment is fully compliant from day one.

Explore opportunities with realestate-lisbon.com.