Short-Term Rentals in Condominium Buildings: What You Need to Know

Short-term rentals have become an attractive option for many property owners in Portugal. However, their presence in residential buildings has sparked debate about how tourists and permanent residents can share the same spaces.

In a building under horizontal property regime, each unit has its own owner, but everyone shares responsibility for the common areas — stairwells, lifts, the roof, and so on. This is where the condominium comes in, and it can have a meaningful say over how units are used, including for short-term rentals. Questions arise naturally: can neighbours block it? Is approval needed? And if guests cause noise, what happens?

The changes introduced by Decree-Law No. 76/2024, together with a growing body of case law and established practice, make this a good moment to clarify what the law actually says about condominium powers over short-term rentals.

Is Condominium Approval Required to Open a Short-Term Rental?

This is probably the most common question when setting up a short-term rental in a shared building. A property with multiple units and neighbours can be a sensitive environment for a constant flow of guests.

✅ Before Decree-Law No. 76/2024

For several years, Portuguese law required that, in buildings under horizontal property regime, opening a short-term rental in a residential unit needed condominium assembly approval — unless the building’s constitutive title already allowed commercial or tourism use.

This requirement was reinforced in 2018 by Law No. 62/2018, which introduced the need for unanimous co-owner approval to operate a hostel in a residential building.

✅ With Decree-Law No. 76/2024 (in force since 1 November 2024)

The new framework marks a shift in approach:

• Prior condominium approval is no longer required to register a short-term rental in a residential unit.
• This does not apply to hostels, which still require unanimous approval from the condominium assembly to operate in buildings that include residential units (Article 9 of Law 62/2018 and Article 6 of Decree-Law 128/2014).

Any property owner can, as a general rule, register a short-term rental in their unit, provided the usage licence allows residential use and all legal requirements are met. For a step-by-step guide to the registration process, see our article on how to open a short-term rental in Portugal.

ℹ️ Exceptions and points to bear in mind:

• Even without a prior approval requirement, the activity can still be challenged after the fact (see the next section).
• Condominiums whose internal regulations expressly prohibit short-term rentals may have valid legal grounds to block or cancel the activity.

In What Circumstances Can Residents Oppose a Short-Term Rental?

Removing the prior approval requirement does not mean there is no oversight. Decree-Law No. 76/2024 introduces a new mechanism for “after-the-fact” opposition, giving co-owners real powers to intervene and address problems.

Formal opposition by the condominium assembly

The condominium assembly can pass, by a two-thirds permillage majority, a resolution opposing the continuation of short-term rental activity, provided that:

• There is documented evidence of repeated disturbances, such as night-time noise, parties, constant foot traffic at irregular hours, rubbish left in common areas, and similar issues;
• Common areas have been misused or building rules have not been followed;
• It can be shown that the short-term rental operation prevents other residents from using the building peacefully and normally.

️ Consequence of opposition: cancellation of the registration

If the resolution is approved and formally notified to the local council, the municipality can cancel the short-term rental registration, preventing its continued operation. The cancellation takes effect 60 days after notification.

What if the building’s constitutive title restricts the unit to residential use?

If the constitutive title of the horizontal property specifies that the unit may only be used for residential purposes and not commercial or tourism activity, the assembly can pass a resolution — with a two-thirds permillage majority — opposing the short-term rental from the outset, even before any disturbances have occurred.

In this case, the prohibition can be applied preventively, regardless of whether any conflicts have arisen previously.

❗ Partial or full opposition?

The opposition may be directed at:

• A specific short-term rental, based on guest behaviour;
• Or all short-term rental activity in the building, if the building regulations or constitutive title allow this and there is sufficient legal justification.

⚠️ Risks for the property owner:

• Cancellation of the short-term rental registration;
• Liability for damage to common areas;
• Legal proceedings for breach of condominium rules;
• Loss of investment and reputational damage.

What Powers Does the Condominium Have Over a Short-Term Rental?

Even though a property owner can, in principle, register a short-term rental without prior condominium approval (except for hostels), there are a number of legal powers and mechanisms that can be used to regulate, condition or even stop the activity. These exist to protect peaceful coexistence, safety and the proper use of shared spaces.

1. Imposing an additional contribution to service charges

If a short-term rental is operated in a unit, co-owners can pass an assembly resolution setting an additional contribution of up to 30% of the annual service charge for that unit.

This contribution is intended to cover the higher costs arising from intensive use of common areas — wear on stairwells, lifts, front doors, and the increased cleaning burden.

✅ The resolution must be passed by a two-thirds permillage majority of the building’s total value (Article 1424 of the Civil Code).

️ 2. Charging for adaptation works

When installing a short-term rental requires works to common areas — such as access adaptations, security upgrades or changes to shared systems —, the full cost falls on the short-term rental operator.

The condominium cannot be required to share the cost of works whose sole purpose is to enable one owner’s commercial activity.

3. Requiring condominium rules to be included in the guest information book

Every short-term rental is legally required to provide guests with an information book containing:

• Internal rules of the short-term rental;
• Practices and norms from the condominium regulations;
• Rules on noise, rubbish disposal, stairwell and lift use, and similar matters.

This ensures guests are made aware of the building’s coexistence rules before their stay — which is essential for preventing conflicts.

4. Requiring a direct emergency contact from the operator

The short-term rental operator must provide the condominium with:

• An emergency telephone number;
• Availability to intervene promptly if guests cause disturbances.

The assembly can pass a resolution — by simple majority — making a 24-hour emergency contact number mandatory, to be shared with all co-owners.

5. Requiring noise rules to be posted

The short-term rental operator must display, inside the property and in a visible location for guests:

• Quiet hours and the noise rules set out in Portugal’s General Noise Regulation;
• Practical information to prevent disturbances (footwear indoors, parties, movement at night, etc.)

This requirement exists to protect the rest and quiet of other residents in the building.

6. Requiring additional security or hygiene standards

While not expressly set out in statute, the condominium may pass resolutions — within its scope of authority and where there is a direct impact on common areas — imposing additional security, cleaning or hygiene requirements, provided these are proportionate and do not infringe property rights.

Examples:

• Requiring keycode entry rather than a shared physical key;
• Setting a minimum cleaning frequency for corridors and entryways.

❌ 7. What the condominium cannot do

• It cannot prohibit a short-term rental without valid legal justification;
• It cannot require prior approval, except in the case of hostels;
• It cannot charge additional contributions above 30% of the normal service charge;
• It cannot revoke an existing short-term rental based on personal preference alone.

Condominium rules always interact with municipal regulations in each city. In Porto, the short-term rental regulations in Porto set out containment areas, ratios by parish and specific procedures that any property owner should be aware of before registering. In Lisbon, the relevant framework is covered in our guide to short-term rental licensing in Lisbon.

Conclusion

Setting up a short-term rental in a building under horizontal property regime is not a unilateral decision, nor is it without consequences. Even though the law no longer requires prior condominium approval (with limited exceptions such as hostels), good judgement, accountability and mutual respect remain essential.

Above all, it is important to maintain a balanced and respectful relationship with the other residents in the building. Relations between co-owners deserve protection — not just among permanent residents, but also between them and the guests who pass through common areas.

Short-term rental owners should take an active role in this:

• Screen guests carefully, avoiding bookings likely to cause friction;
• Set clear behavioural rules aligned with the building’s regulations;
• Communicate from the outset what is acceptable and what should be avoided, so that everyone in the building can rest and coexist comfortably.

Respecting the condominium is not just a legal obligation — it is also a condition for the long-term viability of the activity. A well-managed short-term rental that integrates thoughtfully into its building and neighbourhood will always be better regarded, by those who operate it and those who live nearby.

At Host Wise, we understand how important harmonious coexistence is between short-term rentals and the residents of the buildings where they are located. We work closely with condominium managers in every property we manage. Our team ensures that guests have clear rules to follow, that the building’s internal regulations are respected, and that a positive relationship with co-owners is maintained at all times. Through this hands-on approach, we protect the property owner’s interests, prevent conflicts before they arise, and ensure professional, responsible vacation rental management of your property.