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The purpose of this paper is to discuss a method for assessing the condition of buildings. The method was developed in Portugal as part of a new Urban Tenancy Regime approved in 2006.

The method was developed in six phases, namely: definition of objectives; analysis of existing instruments; formulation of the proposal; discussions with organisations in the rented sector; pilot; and technical presentations of the final version.

The method is viable and adequate, since a balance was achieved between the accuracy of the results in view of their importance for the contractual relationship between landlord and tenant, and feasibility in terms of human and financial resources available for its implementation.

The method has been in use for two years. Further research is needed to confirm the accuracy of the results.

The results are used to determine the maximum annual rent value and to summon landlords to carry out repairs if the state of the building falls short of the required standard of maintenance. In a broader perspective the method is also used to assess of rented stock condition of large property owners and, in an adapted form, to assess buildings viability and determine repair needs.

This paper is relevant because it describes the assessment method; the previous methods for assessing the condition of Portuguese buildings were too simplistic and lacked the accuracy, transparency and independence required.