​The 5 rules for renting a vacation home and maximising earnings

The 5 rules for renting a vacation home and maximising earnings

Anyone who owns a second home or is about to make a real estate investment has good prospects ahead to make an extra income from holiday rentals. According to one of the short let Italian portals, the request for short-term rentals is up 10% compared to last year.

1.)evaluate the commitment required

Every guest must be welcomed and seen off, the owner should remain available in the event of unforeseen events and organise the cleaning of the property between one stay and another. Also do not forget about any maintenance needs (air conditioner, boiler, replacing broken glasses, plates, pots, dishes and sheets, everything must be in working order). It is best to first establish how much time you have on hand to dedicate to the holiday let home. As an option you can ask a local property management company to take care of the lettings which will take about 20% of the earnings.

2.)Online promotion and transparent rates

80% of bookings usually is via the Internet. Having presence on the main holiday let portals is an absolute necessity, updating the availability calendar on all platforms. You should establish the rental prices at the beginning of the year, taking into account the different seasons. The prices should be the same across all the platforms you are using for the reservations.

3.)Keep an eye on taxes and bureaucracy

You do not need to register for a VAT in Italy if you are letting out your property as a holiday home. It is mandatory to keep the attendance register up to date for the Police, registering with the appropriate portal and communicating the names of your guests within 24 hours of their arrival. The income from the letting can be subjected to income tax or to the 21% flat rate tax.

4.)Clear rules

If the holiday home is located inside a development, you should print for the incoming guests (possibly in multiple languages) a summary of the main condominium rules, for example, the times in which to respect the silence, rules about pets, the care of common areas and waste collection.

5.) Not only formality, but true acceptance

It can make a big difference if the owner is available to provide information and suggestions on events, places of interest.