Short-term vs. long-term rental.

Short-term vs. long-term rental.

1: Short-term vs. long-term rental – differences and choices.

• short-term: involves renting for days or weeks, popular with tourist. It can bring a higher profit, but requires more time to manage reservations, leaning and dealing with guests.
• long-term: involves renting for several months or years, resulting in; stable income, less work, but usually the monthly profit is lower.

The choice depends on the location of the property. In tourist places, short-term rentals will work better, while in business or educational areas, long-term rental is a better idea.

2: Legal requirements and licenses.

• short-term rentals: in Spain, a tourist license is required. Regions have different regulations. On Costa Blanca you need registration with the tourist office.
• long-term rentals: requires a rental agreement that complies with Spanish law, usually for a minimum of 6 months. Tenant protection laws are changing, so it is a good option to consult with a lawyer.

3: Initial costs and property preparation. Renovations and refreshing. With short-term rentals it is worth investing in modern furnishings and decor, which increases the attractiveness of the property. Furniture, household appliances, air-conditioning-everything should be in good conditions.

4: Marketing and promotion of the offer.

Photographs and descriptions: professional photos and accurate descriptions increase inquiries. Describe the area, transportation availability and amenities, use ad platforms.

5: Guest service and communication.

• short-term rentals: require frequent contact with guests, key management and cleaning services. Consider conciegre services to make guest´s stay easier.
• long-term rentals: less involved; once a relationship is eestablished, communication is limited to e. g. repairing issues.

6: Taxation.

• short-term rentals: income from short-term rentals is taxable as a business. Expenses such as cleaning, maintenance and commissions can be accounted for.
• long-term rentals: income is taxable as capital gains. Administrative costs and repairs can  be deducted.

7: Rental management vs. an outside company.

• self management: this option is more time-consuming, but allows you to maintain full control.
• rental management company: a good option for owners living abroad or with a larger number of properties. In Spin, many companies offer comprehensive services-from communication with guests to cleaning and repairs services.

8: Property maintenance.

• short-term rentals: more frequent repairs and regular cleaning. It is reccomended to hire local cleaning services that can quickly prepare the apartment for the next guests.
• long-term rental: maintenance depends on the contract-it is worth  agreeing with the tenant which repairs will be the landlor´s responsibility.

9: Guest evaluation and satisfaction.

• reviwes: for short-terms rentals, positive reviews on sites like airbnb or booking are key. It is worth taking care of the details; excellent contact with guests and quick resolution of problems.
• in long-term rentals: positive relationship with a tenant can translate into longer tenancies and referals.

10: Summary: What to choose? Short-term vs. long-term rental.

• short-term rental is better solution for owners who want to maximize income and are willing to engage in tenant service.
• log-term rental: more stable and requires less work. A great option for those who value steady income and less paperwork.

Each landlord should tailor the strategy to their lifestyle and financial goals. How about you? Already know which type of rental suits you better?