The most common
It’s a tradition in Nazaré!
By the end of June most locals pile with family, or move to secondary houses, to free their main houses to tourism. I think that more than 80% of tourists from July to September, use this solution, renting a house or room from the many women in the walkways, showing a typical announcement “Quartos-Chambres-Room-Zimmer”, in a tight network that passes from one to the others the needs of each family seeking for lodging.
You will be invited to see a house, and if business fails, you will move a few meters apart, where the same woman or a new one has another offer to make.It is not cheap, but is is cheaper than regular hotels or even hostels.
Of course, many houses are old, with tiny rooms. Some of them giving the idea that we must sleep standing, because there will be no space for furniture.
Bargaining is almost mandatory, but margins, generally, will not exceed 20 or 25%.
Local authorities are now trying to get some control (and fiscal income) from this market, ordering previous registration. You may find some offers in the many rental sites, but street approach keeps being the main way to make business. Well… some of them not so controlled as wished.