Having read the posts with interest, I however understand that legislation is very clear on this subject; it does not allow renting out privately. You might want to check with your lawyer and quote the following paragraph, which basically says that the management company has this exclusive right.

Best


Decreto-Lei n.º 167/97, relativo ao regime jurídico do funcionamento e instalação dos empreendimentos turísticos.



Art.º 44.º

Exploração dos empreendimentos turísticos

1- A exploração de cada empreendimento turístico deve ser da responsabilidade de uma única entidade.

2- A unidade de exploração do empreendimento não é impeditiva de a propriedade das várias fracções imobiliárias que o compõem pertencer a mais do que uma pessoa.

3- Só as unidades de alojamento podem ser retiradas da exploração dos empreendimentos turísticos e apenas nos casos e nos termos estabelecidos nos regulamentos previstos no nº3 do artigo 1º.

4- As unidades de alojamento que tiverem sido retiradas da exploração de um empreendimento turístico não podem ser objecto de outra exploração comercial, turística ou não.

Miklyn & jessie1,
Sorry for the delay, I haven't checked in here for a while. If you are still interested and have not been passed the photobucket link by someone else, just contact me at: boeman55@yahoo.co.uk and I will send it to you.

Hi All

We have purchased a T3 with another couple as a business investment. We also have a number of other properties in the UK that we successfully rent out. The other couple visited the resort rcently to see the progress. I trust their views 100% and the acid test for me was when they returned I asked them if what we had done (purchased a place there) was the right thing. The reply was yes, dont think you will be disappointed. Thats good enough for me. They also took a load of photo's which I have seen and in my opinion looks great, just needs to get the greenage established which of course will take time to mature. We are heading out Oct half term for our first stay as we are part of the 3 yr rent agreement. So I hope I'm not disappointed.

I feel if there are still many concerns people share, then they - we should join together to get these iron out with the developer before its too late. Judging from recent correspondance the deeds are to be signed in the next couple of weeks which does not give a great deal of time. I would be interested to know how many have these concerns and feel strong enough to form a joint campaign focused through a single voice.

Finishing on a positive note....

The interior colour scheme (compulsory on the rent programme) is not all red and orange and actully in the flesh it does not like the photo's Monte Santo sent out a couple of months ago. Also as they say this colour scheme will be much more forgiving than the beige and creams we all saw in the show house, especially if your renting heavily like we hope it will.

Lastly our Portuguese bank went to take a look at the development a few months back to release the 2nd stage payment to ensure the state of the development was sufficently worth releasing the funds. I'm no expert on Portuguese banks, but they valued the property way over what we have paid which was rather pleasing as the UK banks tend to only tell you of a property you are buying is worth the asking price, not what it is actually worth.

Of course time will tell and I am sure that some of the negative concerns that we have all shared to date will start turning into positive ones

"I feel if there are still many concerns people share, then they - we should join together to get these iron out with the developer before its too late. Judging from recent correspondance the deeds are to be signed in the next couple of weeks which does not give a great deal of time. I would be interested to know how many have these concerns and feel strong enough to form a joint campaign focused through a single voice."

Hi day&jones,
With regard to what you have said above, there are a number of us already conversing on some issues. If you contact me on the email in the post above yours, I can fill you in.
Regards
J

MJS wrote:
"Having read the posts with interest, I however understand that legislation is very clear on this subject; it does not allow renting out privately. You might want to check with your lawyer and quote the following paragraph, which basically says that the management company has this exclusive right."

MJS, I showed my solicitor your post and got him to repeat what he had already told me twice before. He wrote:
"The reply is the same as usual.
You cannot assign the property to an agent which will compete with the
resort's entity, however, you'll be able to let the property out personally."

Besides my earlier comments, I understand that further legal amendments are in the late stages of approval, supporting my arguments further ....
I would wonder however, how you and your lawyer would see the practical terms of your/his assumptions....

I understand that the resort in question is a closed condominium, which I then suppose has a gated security? As soon as a person shows up at the entrance without a reservation (of the specific management company) I would assume they would not be granted access to the resort?

For the sake of argument, if you were able to sneak your guests in, I would just dread the possible consequences on the subject of their safety. Would they check in and follow the legally required police registration? I would suppose not, as they have no reservation with the management company. Then, when having for instance a fire, your guests would not be accounted for, with possibly far stretching consequences for you!

Even more, any tourist property in Portugal will receive a specific license from Turismo de Portugal. Following this (with the established star classification), a management company needs to adhere to particular operating criteria and standards; e.g. an established frequency of changing the linen. How would you, when intending to rent out privately, go about this? Any non-authorised housekeeping staff will be denied access to the resort. You would not be able to adhere to the star classification attributed. Would you want to put this license and your investment (and of all others) at risk?

Another practical issue. Would your guests have access to bar, restaurant, reception and other on-site facilities? Are these private property or public area? In case it is the latter, they might be denied access to all, which would not create the intended 5-star holiday experience for your guests. Also, the management company would not have any responsibility of needing to deal with their queries or possible complaints.

Furthermore, I understand from my solicitor in Portugal, in case a management company suspects private renting, it is obliged by law to notify the Portuguese Tax Office, who then will levy penalties against the respective owner renting out privately.

In all fairness, in case you want the management company to market your property in your best interest, should it not be entitled to the rental returns? Marketing and Sales expenses for their rental operation are undoubtedly tied to a particular percentage of their total annual operating budget. If it cannot forecast its rental returns, will this not have consequences for their marketing investments and your rental results......?

Consequentely, I would suppose you might want to inform the management company of any rental leads you might have, so adding to your rental share.

Why not sit down with the management company and see how you can help each other? Most of us have private companies or have senior positions in corporations with websites, newsletters, promotional material, staff incentives, emagazines etc, which can all feature the resort, while possibly having access to local media and journalists, facilitating the desired exposure and positioning in key markets. This will work in both your interest.

Hope this helps.

Hello

Just logged in after a few weeks away. We are owners of a T3 at Monte Santo and would love to join any form of joint approach to the developer.

We too are heading out there for Half Term (18 - 25 Oct) We are BQ F7. Maybe we could meet up if our weeks coincide.

In the meantime we still have no news on completion date?

Look forward to hearing from you.

Vanessa

Hi Paul & Hayley

We have also invested in a T2 and are also apprehensive. We are heading out on 18th october - will you still be there?

Thanks
Vanessa

Vanessa

I have not been on the forum for a couple of months as a number of owners have been corresponding by email. I note that you have a T2 and a T3. Is that a T3 apartment or a T3 townhouse. If it is a T3 apartment there are a number of concerns that you would ned to know about. I also have a T3 and am just back from MSR. If you want to talk off line drop me a mail to rikki.huddleston@bt.com

Regards
Rikki