20 May 2020 – The Lisbon City Hall is launching a new housing program this week, called Safe Rents, where it intends to attract homes that are currently on the short-term rental market to the long-term affordable rental market. Owners of homes used on platforms such as Airbnb have suffered with the coronavirus, as bookings have dropped precipitously.
The municipal government announced that it will invest 15 million euros over a period of five years, the expected duration of the rental agreements. It is hoped that that amount will be enough to cover the rental of approximately one thousand homes.
The mayor of Lisbon, Fernando Medina, initially announced the policy at the end of 2019, and its implementation has been hindered by the pandemic and ensuing lockdown. However, the pandemic has also strengthened the case for a move away from investments in short-term local accommodations and future waves of the disease remain a distinct possibility.
Besides guaranteeing a fixed income stream for property owners, they will also receive certain tax benefits, including an exemption from income tax on rental payments.
Original Story: Jornal de Negócios – Filomena Lança
Translation/Summary: Richard D. Turner