First 90 Days After Purchase: A Checklist For Setting your Property Up For Rentals
Key Takeaways
Realistic timeline: Plan for 100-120 days from purchase to first booking, not 90. AL license processing, furniture delivery, and platform verification all introduce delays.
Biggest bottleneck: Alojamento Local license applications take 60-90 days in most Algarve municipalities. Start gathering documentation immediately after purchase.
Budget requirements: Expect €4,000-7,000 for furniture and equipment, €250-400 for professional photography, €400-800 annually for insurance, plus €150-300 for smart locks and safety equipment.
Time investment: The setup process requires 40-60 hours of direct work, spread across administrative tasks, vendor coordination, and platform configuration.
Critical early decisions: Internet speed, furniture quality, and professional photography directly impact your booking rate and nightly prices. These aren't areas to economize.
Cannot operate without: Active AL license, proper insurance covering short-term rentals, safety equipment (smoke detectors, fire extinguisher, complaints book), and verified platform accounts.
Want to see what your rental property in the Algarve should actually be earning?
Click here to get your free earnings estimate using real Algarve market data.
You've just purchased your Algarve property. The paperwork is signed, the keys are in your hand, and the excitement is real. But between today and your first rental booking sits a mountain of administrative tasks, physical preparations, and platform configurations that most new owners dramatically underestimate.
The first 90 days determine whether your property launches successfully or stumbles through months of delayed bookings, compliance issues, and frustrated guests. This comprehensive checklist breaks down exactly what needs to happen, when it needs to happen, and what you can realistically expect from the process.
Whether you're planning to self-manage or work with a property manager, understanding this timeline helps you make informed decisions about time investment, budget allocation, and when you can realistically start accepting bookings.
Days 1-30: Legal & Administrative Foundation
The first month focuses on administrative groundwork. Most of these tasks involve waiting periods, so starting immediately after purchase is critical.
Utilities Transfer and Setup
Contact EDP (electricity), your local camara (water), and your chosen internet provider to transfer accounts into your name. This typically requires your NIF (which you should already have from the purchase process), proof of property ownership, and a Portuguese bank account for direct debit setup.
Internet deserves special attention for holiday rentals. Test your connection speed immediately. Most guests expect reliable WiFi for remote work, and slow internet generates negative reviews faster than almost any other issue. If your property has less than 50 Mbps download speed, consider upgrading before listing. MEO and NOS offer fiber connections in most coastal areas.
Budget 2-3 weeks for utility transfers to complete, though electricity sometimes takes longer if meter readings are disputed.
Property Insurance
Your purchase mortgage likely required buildings insurance, but holiday rental properties need additional coverage. Standard policies exclude short-term rental activity, leaving you exposed to guest-related damage and liability claims.
Look for policies specifically covering Alojamento Local operations. These typically cost €400-800 annually for a two-bedroom property and include public liability cover (essential if a guest injures themselves), contents cover for furnishings, and loss of income protection if the property becomes uninhabitable.
Portuguese insurers like Fidelidade and Tranquilidade offer AL-specific policies, as do international providers operating in Portugal. Read the exclusions carefully—some policies won't cover damage during parties, which matters if you accept groups.
Alojamento Local License Application
This is your longest lead-time item. Without an AL license, you cannot legally operate short-term rentals in Portugal, and platforms like Airbnb increasingly verify licensing before publishing listings.
The application process involves submitting architectural plans, proof of ownership, fiscal documentation, and compliance certificates to your local câmara municipal (town hall). Processing times vary dramatically by municipality—Lagos typically takes 60-90 days, whilst smaller councils might complete applications in 45 days or stretch to four months.
Required documentation includes:
Property compliance certificates: Electrical installation certificate from a licensed electrician, gas installation certificate if applicable, energy performance certificate (required at purchase anyway), and water quality certificate if you have a borehole or well
Safety equipment installation: Functioning smoke detectors in all bedrooms and common areas, fire extinguisher accessible from all sleeping areas, emergency lighting near exits, complaints book (Livro de Reclamações) displayed prominently, and emergency contact information posted visibly
Start gathering these certificates immediately. Finding qualified technicians, scheduling inspections, and receiving official documentation easily consumes 3-4 weeks before you can even submit your AL application.
Fiscal Representative (Non-Residents Only)
If you live outside Portugal and don't plan to spend significant time here, Portuguese tax law requires appointing a fiscal representative. This person or company acts as your official contact point for tax authorities and receives all correspondence on your behalf.
Fiscal representatives charge €150-400 annually and handle your annual tax return submission, communicate with Finanças regarding any queries, ensure you meet all reporting obligations, and maintain your tax compliance status. Missing tax deadlines because you didn't receive notices at a foreign address creates significant complications.
Most property managers offer fiscal representation as an add-on service, or you can hire a standalone accountant. Either way, arrange this before your first rental income arrives.
Local Vendor Relationships
Start building your support network immediately. You'll need reliable contacts for cleaning, maintenance, pool service (if applicable), and emergency repairs. These relationships take time to develop, and scrambling to find a plumber at 9pm when a guest reports a leak is exactly the scenario you want to avoid.
Cleaning: Test at least two cleaning companies before launching. Standards vary dramatically, and your first few guest reviews will reference cleanliness before anything else. Expect to pay €60-90 for a thorough changeover clean of a two-bedroom property in the Lagos area.
Maintenance: Identify a handyman who responds to messages quickly and can handle basic repairs. Many property owners recommend finding someone semi-retired who treats your property as priority work rather than a large company juggling dozens of jobs.
Pool service: If your property includes a pool, weekly maintenance during summer is non-negotiable. Budget €80-120 monthly during peak season. Poor pool maintenance generates instant negative reviews and potential health hazards.
The Casa Oeste team has spent years building relationships with reliable local vendors. When owners work with us, they benefit from these established partnerships and our ability to coordinate rapid responses—particularly valuable when you're not physically present in Portugal.
Days 30-60: Property Preparation
Month two transforms your property from an empty space into a guest-ready rental. This phase requires the most hands-on work and the biggest immediate cash outlay.
Furniture and Equipment
Furnishing a holiday rental differs significantly from furnishing your personal home. Durability matters more than style, functionality trumps aesthetics, and guests judge your property against hotels, not residential homes.
Essential furniture for a two-bedroom property typically costs €4,000-7,000 if you're buying new:
Bedrooms need quality mattresses (guests will complain about uncomfortable beds more than almost anything else), sturdy bed frames that won't squeak, bedside tables with lamps for reading, adequate wardrobe space with hangers, and blackout curtains or shutters for summer sun.
Living areas require comfortable seating for your maximum occupancy, a dining table with chairs for all guests, adequate lighting (overhead plus lamps), and durable flooring that handles sandy feet and spills.
Kitchen must be fully equipped to hotel standards: full-size cooker and hob, large fridge-freezer, dishwasher (guests expect this in properties above budget category), microwave, coffee maker, toaster, kettle, complete cookware set including pots, pans, and baking dishes, full cutlery and crockery for maximum occupancy plus spares, sharp knives (dull knives generate surprising amounts of frustration), and glassware including wine glasses.
Many new owners underestimate kitchen equipment costs. Budget €800-1,200 to properly equip a rental kitchen from scratch. IKEA in Loulé offers the most economical option for bulk purchases, whilst Continente and Leroy Merlin work well for smaller items.
Outdoor spaces deserve particular attention in the Algarve. Quality outdoor furniture, adequate shade (umbrellas or pergola), and comfortable seating dramatically increase booking appeal. Properties with well-furnished outdoor spaces often command 15-20% premium pricing during summer months.
Safety Compliance Deep Dive
Your AL license application requires safety certificates, but actual compliance means purchasing and installing the physical equipment:
Smoke detectors belong in every bedroom, hallway, and kitchen. Test them monthly. Battery-operated units work fine—interconnected mains-powered systems aren't required for residential AL properties.
Fire extinguishers must be easily accessible, clearly marked, and rated for Class A, B, and C fires (multi-purpose dry powder extinguishers handle all three). Mount them near potential fire sources but not directly adjacent—kitchen extinguishers should be by the exit, not above the hob where grease fires might prevent access.
Emergency lighting near exits isn't always explicitly checked during inspections, but it's required in the regulations. Battery-backup LED units cost €15-25 each and install in minutes.
The complaints book (Livro de Reclamações) must be displayed prominently with a notice informing guests of its location. You're legally required to provide this even if guests never use it. Purchase the official version from any papelaria (stationery shop) for €3-5.
Post emergency contact information visibly, including your phone number or property manager contact, emergency services (112), local police, nearest hospital, and utility emergency numbers.
Professional Photography
This deserves its own conversation because photography directly impacts your booking rate and the nightly prices guests will accept. Professional photos aren't optional if you want your property to compete successfully.
iPhone photos cost you bookings. Even good amateur photography rarely matches what professional equipment and experience delivers. Guests scroll past dozens of properties in seconds, and professional images make yours stand out immediately.
Professional photography in the Algarve costs €250-400 for a standard property shoot (2-3 hours, 30-40 edited images). This includes exterior shots, all interior rooms from multiple angles, detail shots of amenities, and outdoor spaces at optimal lighting.
Schedule photography after furnishing is complete but before listing. You'll use these images across Airbnb, Booking.com, your own website, and social media for years. The investment pays back within your first few bookings.
At Casa Oeste, we arrange professional photography shoots for all managed properties and art-direct each session to highlight features that drive bookings in your specific property category. We've learned exactly which angles, lighting, and compositions generate the strongest booking response in the Algarve market. See our approach to photography staging.
Internet Speed and Technology
Test your internet connection under real-world conditions. Download large files, stream video on multiple devices simultaneously, and run speed tests at different times of day. Many Algarve properties experience significant slowdowns during evening hours when entire neighborhoods are online.
Minimum acceptable speeds for holiday rentals:
Budget properties: 30 Mbps download
Mid-range properties: 50 Mbps download
Premium properties: 100+ Mbps download
Slow internet generates negative reviews and lost bookings. Remote workers specifically filter search results by WiFi speed, and families streaming entertainment expect reliable connectivity.
If your connection underperforms, contact providers about upgrades. Fiber is available in most coastal towns now. Budget €40-60 monthly for quality internet service.
Key Management Systems
Decide how guests will access your property. Traditional key handovers work if you live locally, but electronic locks offer significant advantages for remote owners and create better guest experiences.
Smart locks with unique codes for each booking eliminate key handoff logistics, allow you to change codes remotely between guests, provide entry logs if you need to verify timing, and integrate with major booking platforms for automatic code generation.
Quality smart locks cost €150-300. Installation takes 30-60 minutes if you're replacing a standard lock. Budget options frequently fail—invest in reliable brands like Yale, August, or Nuki that other property owners recommend.
Some owners prefer lockboxes with physical keys as a middle ground. These work adequately but don't provide the security features or automation benefits of proper smart locks.
Days 60-90: Platform Setup and Marketing
The final month focuses on digital presence. This is when your property becomes visible to potential guests and starts generating bookings.
Platform Account Creation
Start with Airbnb and Booking.com—these two platforms drive 80-90% of bookings for most Algarve properties. Creating accounts takes minutes, but verification processes add days or weeks to your timeline.
Airbnb requires identity verification, proof of property ownership or management rights, and sometimes additional documentation depending on your location. Submit everything immediately rather than waiting for prompts. Verification delays are common and frustrating.
Booking.com has a more extensive property verification process, including video calls in some cases. Their standards run higher than Airbnb, but they also drive significant booking volume, particularly for European travelers who prefer Booking.com's interface and policies.
VRBO/HomeAway represents your third-tier platform. It drives less volume in the Algarve than UK or US markets but still generates supplemental bookings worth the listing effort.
Listing Optimization
Your listing makes or breaks your booking success. Even with professional photos, poor descriptions, incorrect amenity tags, or weak pricing strategies tank your performance.
Listing titles should be descriptive and specific: "Modern 2-Bed Apartment with Pool - 5min to Lagos Beaches" outperforms "Beautiful Holiday Home." Include your location, key features, and proximity to attractions guests care about.
Descriptions need to balance comprehensive information with readability. Write for scannability—short paragraphs, clear sections, bullet points for amenities. Cover the space (room dimensions, bed configurations, bathroom count), the amenities (pool, WiFi speed, parking, air conditioning), the location (beach distance, restaurant proximity, grocery stores), and practical details (check-in process, house rules, what's provided).
Guest communication starts before booking. Your description sets expectations that determine whether guests leave happy or disappointed. Be accurate about distances, honest about potential noise sources, and clear about property limitations.
Amenity selection impacts search visibility. Tag everything your property genuinely offers, but never list amenities you don't have. "Beach nearby" doesn't mean "beachfront," and guests who feel misled write brutal reviews. Similarly, if you advertise air conditioning, it needs to work in every bedroom, not just the living room.
Pricing Strategy Foundation
Your initial pricing determines how quickly you generate your first bookings and reviews. New listings without reviews struggle to compete at premium prices, regardless of quality.
Consider launching at 10-15% below comparable properties to accelerate your first 5-10 bookings. Reviews matter more than maximizing revenue in your first two months. Once you've established a 5-star average with multiple reviews, gradually increase rates to market level.
Dynamic pricing transforms rental income, but implementing it manually requires daily attention. If you're self-managing, budget 15-30 minutes daily for pricing adjustments based on local events, competitor changes, seasonal demand shifts, and booking velocity.
Base rates should account for all your costs plus target profit: mortgage/opportunity cost, utilities, cleaning fees, platform commissions (15.5% for Airbnb), maintenance reserves, property management (if applicable), and insurance.
A common mistake new owners make is pricing based on their costs rather than market demand. Your mortgage payment doesn't determine what guests will pay—comparable properties do. Research thoroughly before setting initial rates.
Calendar Management
Open your calendar strategically. Don't make your entire year available immediately—guests rarely book 11 months ahead for Algarve properties unless they're returning to a favorite.
Open 6-9 months initially. This creates some urgency whilst giving you booking flexibility. As you gain experience with seasonal patterns, you'll develop your own calendar strategy.
Block personal use time immediately. Nothing frustrates guests more than last-minute cancellations because owners want the property for themselves. Your personal time deserves protection, but plan it before accepting bookings.
Minimum stay requirements balance booking frequency against revenue optimization. During summer (July-August), 5-7 night minimums maximize revenue and reduce changeover costs. Shoulder seasons (May-June, September-October) work well with 3-4 night minimums. Winter might accept 2-night bookings to maintain occupancy, though some owners prefer longer stays to reduce turnover frequency.
Guest Communication Templates
Prepare message templates before your first booking. You'll need responses for common situations: booking inquiries, booking confirmations, pre-arrival information (check-in instructions, directions, what to bring), check-in day greeting, mid-stay check-in, and checkout instructions with review request.
Time investment in guest communication varies significantly based on your response process. Template messages save time whilst maintaining quality. Customize each one slightly—guests recognize and dislike obvious automation.
Response time matters enormously. Airbnb's algorithm favors hosts who respond within one hour, and guests comparing multiple properties usually book with whoever responds first. If you can't guarantee quick responses throughout the day, consider whether self-management fits your schedule.
At Casa Oeste, our team maintains average response times under 15 minutes throughout the day. This quick engagement converts browsing guests into confirmed bookings and prevents bad reviews through proactive communication.
House Rules and Policies
Establish clear rules before launching. These protect your property whilst setting guest expectations:
Smoking policies (most Algarve properties prohibit smoking indoors), pet policies (if you allow pets, charge appropriate fees for additional cleaning), party policies (explicitly state maximum occupancy and quiet hours), and checkout procedures (what guests must do before leaving—run dishwasher, take out rubbish, etc.).
Your cancellation policy represents a strategic choice. Flexible policies generate more bookings but expose you to last-minute cancellations that leave empty periods. Moderate policies balance guest appeal against your revenue protection. Strict policies reduce bookings but protect you from cancellation losses.
Most Algarve properties succeed with moderate cancellation policies. Flexible works during low season when you're competing aggressively for bookings. Strict suits peak summer season when demand exceeds supply.
Timeline Summary
Month 1: Administrative Foundation
Week 1-2: Utilities transfer, insurance setup, vendor identification
Week 3-4: AL license documentation gathering, fiscal representative appointment
Month 2: Physical Preparation
Week 5-6: Furniture purchasing and delivery, safety equipment installation
Week 7-8: Professional photography, final touches and staging
Month 3: Digital Launch
Week 9-10: Platform account creation and verification, listing optimization
Week 11-12: Soft launch with competitive pricing, first booking generation
This timeline assumes everything proceeds smoothly. Reality frequently introduces delays—furniture delivery takes longer than quoted, technicians reschedule inspections, AL license processing extends beyond estimates. Build buffer time into your planning. Most properties realistically need 100-120 days from purchase to first booking, not 90.
Common Bottlenecks
AL license delays cause the most frustration. Municipal processing times are unpredictable, and you can't legally operate without approval. Some owners launch without licenses and hope for the best—this is increasingly risky as platforms verify licensing and Portuguese authorities conduct more inspections.
Furniture delivery extends timelines, particularly if you're ordering from mainland Portugal or internationally. IKEA Loulé stocks most items locally, but custom furniture or specialty pieces might take 6-8 weeks. Order early.
Vendor reliability surprises many new owners. Tradespeople in the Algarve work on relaxed timelines, particularly outside peak season. The electrician who promises "tomorrow" might mean "within three days." Factor this into scheduling.
Platform verification occasionally stalls without clear explanation. Both Airbnb and Booking.com sometimes request additional documentation or clarification. Respond immediately to any requests rather than waiting—each delay extends your launch timeline.
Technology setup catches owners off-guard if they're not technically comfortable. Smart locks, WiFi optimization, and platform integrations take time to configure properly. Don't schedule your photography shoot for the same week you're installing smart locks—separate technical projects from creative work.
Conclusion
The first 90 days transform your Algarve property from a purchase into a functioning holiday rental business. The checklist above represents approximately 40-60 hours of direct work, plus weeks of waiting for administrative processes to complete.
Many owners find this period coincides with other priorities—settling into Portugal if they've relocated, managing their primary business remotely, or simply wanting to enjoy their new property rather than treat it as an intensive project. The work is achievable for motivated owners, but the time investment and coordination demands surprise most people.
At Casa Oeste, we work with property owners at various stages of this journey. Some owners handle setup independently and engage us later for ongoing management. Others prefer we coordinate the entire launch process, from arranging AL license documentation to optimizing their first listings. Our experience managing properties across Lagos and the Western Algarve means we know exactly which local vendors deliver quality work, how to navigate municipal processes efficiently, and which setup decisions impact your long-term revenue most significantly.
Explore our property management services to see how we support Algarve property owners, or visit ourhomepage to learn more about our approach to holiday rental management.
Want to see what your rental property in the Algarve should actually be earning?
Click here to get your free earnings estimate using real Algarve market data.
Frequently Asked Questions
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Processing times vary by municipality. Lagos typically takes 60-90 days from submission to approval. Smaller councils like Vila do Bispo might process applications in 45 days, whilst busier areas occasionally extend to four months. The documentation gathering phase before submission adds another 3-4 weeks. Start the process immediately after purchase.
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Legally, no. Portuguese law requires an active AL license before operating short-term rentals. Platforms like Airbnb increasingly verify licensing before publishing listings. Operating without proper licensing risks fines, forced booking cancellations, and complications with future license applications. Wait for official approval.
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Budget €4,000-7,000 for new furniture and equipment if purchasing everything from scratch. This includes all bedroom furniture, living area seating, dining table and chairs, full kitchen equipment, outdoor furniture, linens and towels, and safety equipment. Buying second-hand or bringing items from elsewhere reduces costs significantly, but factor in transportation expenses.
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If you're a non-resident earning rental income in Portugal, tax law requires appointing a fiscal representative. This person or company acts as your official contact point for Portuguese tax authorities. Fiscal representatives cost €150-400 annually and ensure you meet all tax obligations and receive important correspondence. Most property managers offer this service.
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Aim for at least 50 Mbps download speed for mid-range properties. Budget properties can manage with 30 Mbps, but you'll receive guest complaints if speeds drop below this. Premium properties should offer 100+ Mbps. Remote workers specifically filter searches by WiFi speed, and families streaming video expect reliable connectivity. Test your connection under load before listing—many Algarve properties experience significant slowdowns during evening hours.
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List on both simultaneously. Airbnb and Booking.com together drive 80-90% of bookings for Algarve properties. They attract different guest demographics—Airbnb skews younger and more international, whilst Booking.com captures European travelers and older demographics. Setting up both accounts takes the same effort, and calendar synchronization prevents double bookings.
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Professional photography costs €250-400 for a standard property shoot in the Lagos area. This includes 2-3 hours of shooting time, 30-40 professionally edited images covering all rooms and outdoor spaces, and usage rights for all marketing platforms. This investment pays back within your first few bookings through higher rates and better conversion.
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Plan for 100-120 days rather than 90. This accounts for typical delays in AL license processing, furniture delivery, vendor scheduling, and platform verification. Properties that rush the process often launch with incomplete setups or missing documentation, creating problems with early guests that damage your review rating permanently.
About the Author
Matt Deasy is the founder and CEO of Casa Oeste: a property expert with more than 20 years of experience in international tourism and 15 years living in the Western Algarve. Having renovated multiple properties across Portugal, Matt brings a practical, boots-on-the-ground perspective to every article.
A travel industry expert, he previously launched and ran a multinational travel company, selling tens of thousands of bed nights across Europe and Africa for over a decade - and is the co-founder of PortugalXpert - specialists in Portugal relocation. He is the co-author of two books on relocating and investing in Portugal: Portugal Beckons and Your Portuguese Property Beckons, both available on Amazon.
Through Casa Oeste, Matt helps homeowners unlock the full potential of their Algarve properties with expert management, renovations, and market-led insights.
