Short lets: another opportunity within the real estate industry
The “short lets” segment has been growing quite a lot in the last few years.
Who is not aware of Airbnb? Who has not rented an apartment for a vacation or a short weekend abroad?
It is a sector that people like more and more, many families, young people, even managers prefer this solution to the “classic” hotel.
How it this possible? It is not always a question of costs, but above all of freedom and comfort.
Specifically what? The furnished apartment, which in the industry “slang” is named holiday home.
These housing solutions can be advertised free of charge on the most popular international web platforms (Airbnb, Booking, Expedia and on and on).
The user searches for the ideal solution for his needs, books, pays and … it’s done.
The guest will be welcomed to the property that he/she booked and will spend the planned stay. At the end he/she shall write a review about his/her experience on the same platform where he/she has booked.
Beware, not all that glitters is gold, because you will have to pay for commissions on your sales (different according to the platform policy).
Right now this is another interesting opportunity to raise an income out of a housing property.
There are many important differences as opposed to traditional rentals:
- Guarantee payments (guests pay in advance)
- No risk for the building to be occupied
- Constant care of the property (cleaning, maintenance, etc.)
Of course, earnings are very interesting, potentially higher than traditional rentals.
This is possible when the property is in central areas, well served by public transport (better by metro) and in places with attractions.
Why can earnings be higher?
the real comparison is with hotels, because the service offered is hotel-type (linen, cookware, etc.), so the price you set is per day and not monthly as for a traditional rental; said aspect by achieving an average coverage of monthly occupancy can generate great benefits on your ..pocket.
How to manage an apartment with this type of rental?
There are those who manage their property directly and therefore reduce costs to a minimum (check-in, cleaning, portal commissions).
However, our local Authorities recently set a number of new rules, ending up with complicating things (strange for Italy?). If you want to work professionally you must be compliant with the regulations of the Metropolitan city, the Municipality, the Police … and so on and so forth!
If you don’t feel like doing it or do not have time, there are companies taking care of everything, do you want to know more?
I’ll tell you about it in the next article.
(picture is a courtesy of ShortStays.com)