Short-term lease is a practice that allows ownersoptimize their performance by offering your goods property for short stays. However, while this alternative can be very attractive from a financial point of view, it also presents a certain number of risks and limitations that must be faced. In this article, we will look at a few factors to consider before embarking on this typeinvestmentto avoid the most common pitfalls.
Regulation: Strict legal framework
First of all, know this you must follow certain specific regulations when you decide on a seasonal rental. This is mainly about compliance with valid legislation related to tourism, hygiene standards or even specific rules specific to certain cities or municipalities. For example, you will need to check:
- Registration conditions at your town hall according to the system established by it.
- Obligation to declare income.
- Mandatory evacuation measures (tourist tax, etc.).
Careful selection of real estate: a crucial step
Even before investing, it is essential to have with you pay special attention to the choice of accommodation that you want to rent for a short period of time. So, to maximize your chances of success and limit your risks, there are several elements to consider:
Place
This is undoubtedly the most important criterion when marketing a rental property. Indeed, well located apartment, close to public transport, shops or tourist attractionswill naturally be more sought after by vacationers.
Property composition
Depending on the requirements of potential tenants, the size of the accommodation, the number of bedrooms or the presence of outdoor space will also be taken into account. For example, rentals with a large capacity (large families, groups of friends) can be very popular.
Comfort and quality of equipment
If you want to attract guests who are willing to pay a premium price for their stay, consider take care of the interior design and offer quality equipment. Air conditioning, TV, recent home appliances… So many elements that will make a difference in the eyes of future residents.
Management or self-management: finding the right balance
Owners of real estate intended for short-term rental very often find themselves faced with the following dilemma: managing the operation and maintenance of their accommodation themselves or delegate this task to professionals using a rental management service. Each of these options has its advantages and disadvantages:
- Own management – saving on management costs, direct contact with tenants, full control of the booking schedule, etc.
- Management – saving time, peace of mind, recognized expertise provided by professionals, administrative and accounting monitoring…
Choosing between these two options will depend primarily on your availability, your property management skills, and your desire to be directly involved in the tenant relationship. AND Choosing a hybrid solution can be a good compromisewhich would allow you to outsource certain missions while retaining control over other aspects of the lease.
Rental income: don’t fall for the illusion of tempting promises
One of the common mistakes of novice investors (and sometimes even some experts) is to predict rental yield levels that are too high compared to market reality. It is therefore advisable to remain cautious and don’t just rely on the simulations you can find from agencies or online platforms.