When owning a property, it is often more profitable to opt for renting furnished accommodation during holidays rather than for long-term. If you wish to know more information about property rental, visit www.for-sale.com/.
The advantages of seasonal rentals
The furnished tourism classification is not mandatory, but it can be very interesting. In addition to the trust it gives to the client due to the “label” effect, it allows an exemption from the business tax normally applicable to real estate rental companies. Attention, this is only possible if the property put in vacation rental is also considered as a second home that the owner is supposed to occupy at least once in the year. In return, the housing tax or the territorial economic contribution must be paid.
Why prefer the short term rather than the long term rental of a real estate property?
Long-term rental can actually be likened to renting an apartment or an unfurnished house. The short-term rental is considered a seasonal rental. The vacation rental offers greater freedom: the housing is not subject to a lease and occupied for at least 3 years. If you are an owner, you can dispose of it almost whenever you want. If you also want to enjoy this second home for your own vacation, nothing is against it. Just manage your rental schedule. Your friends and family will also enjoy your vacation rental. You no longer have to worry about the risk of large unpaid bills, especially as seasonal tenants sometimes pay as soon as they arrive. Also note that the short duration of the rental encourages the holiday makers to respect the places if only to recover their deposit. With a short-term rental (depending on the geographical location of the property and the attractiveness of the tourist region in which it is located) the economic return is much higher than that of a long-term rental. On some municipalities, the price of a month’s long-term rental is most often applied to the week for a vacation rental. The profits can therefore be almost quadrupled if you have tenants throughout the year.
Study the economic potential of seasonal rentals
It is therefore important to evaluate the filling capacity of a short-term rental to prefer it to a long-term rental. It is not always easy to find tenants, the security of rent paid every month is not similar and this involves additional publicity work. We must also organize to welcome visitors and ensure regular maintenance such as cleaning. The geographical proximity between your personal residence and the property rented as well as the time that you can devote to the seasonal hiring are essential criteria for you to decide for the short duration rather than for the long-term lease. In any case, seasonal rental is often the ideal solution at first to make the purchase of a home profitable.