Is tourism rental more profitable than traditional rental?

Tourist rental is more profitable, but only from 60% occupancy.

In recent years, it has increased the investment in housing to allocate it to tourist rentals. From the outset, this type of rent seems to report a high profitability. The agreed rental price is usually higher than that of traditional rental.

However, tourist rental is more profitable than residential rental only if it exceeds 60% of occupancy in cities such as Madrid or Barcelona. This is confirmed by the second 'Comparative study on tourist vs residential rental' prepared by Safe Rent.

Therefore, so that the tourist rental is more profitable than the traditional, housing must have a high occupancy .

Disadvantages of tourist rental

There are certain disadvantages with respect to this type of rental. For example, taxation is different, there are always a series of risks and a series of licenses must be in order to allocate the home to such use.

On the other hand, there is taxation. The tourist or seasonal rentals must be declared in the Rent as real estate capital yield. Unlike the traditional rent, the 60% reduction in net return is not applied.

Calculation of profitability of a tourist rental

In basis at € 80 per night.

Source: Rent Insurance.

In this way, an owner who is thinking of allocating housing for tourist rental must calculate the expenses and income very well.

Related news tourist rental .

"The administrative regime of tourist housing: Inspection and sanctioning regime", by Ms. Encarnación Montoya Martín

"Key ideas on the contractual and civil liability regime in the accommodations in houses of tourist use ", by Mr. Manuel García Mayo

" Tourist apartments and neighborhood communities ", by Mr. Guillermo Cerdeira Bravo de Mansilla

" Taxation of the tourist homes: t tax, control and fraud ", by D. Alfonso Luis Cerdeira Bravo de Mansilla

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