The rental market is largely focused on short-term (and more expensive) holiday rentals in the coastal resorts and larger metropolitan areas. Long term apartment or house rentals can be somewhat difficult to find, depending on the season. The type of housing will vary between apartments, villas or condominiums. Rates will depend upon location and quality of the structure, amenities etc.

A fairly typical monthly rate on a long-term 2-bedroom apartment lease in Lisbon would be over Euros 500/month, excluding utilities (see below for a comment on this price). The same apartment on a short-term or holiday lease might go for as much as Euros 50/day or 1500/month, depending on location.

It is important to have a signed lease agreement that spells out every detail of the lease, including termination clauses. A deposit equivalent to one month's rent is usually required, plus one month's rent in advance. A foreigner must have a Portuguese guarantor in order to enter into a lease agreement. The guarantor will guarantee in writing that the lease payments will be made should the renter default.

The best way to go about finding a suitable rental property is to consult a property management service or real estate agency. Ads are also sometimes placed in the classified section of the English language daily Portugal News (http://www.the-news.net/).

Added 7/12/05 by Tania - The normal price in Lisbon for a 2 bedroom flat is not even close to 500 euros anymore.