If you have a vacation home, you have surely wondered if it is profitable to rent your house.
Holidays rentals have become a trend and although there have always been owners who have rented their homes while they are not in them in order to get “extra money”, things have changed today.
There are some regulations that you need to take into account to rent out your home safely, so if you have ever thought about it, we will tell you how to do it and what the benefits are of renting your property as a holiday home.
How to rent your home as a holiday home
The first thing you have to do if you want to rent your house for vacation purposes is to make a contract for the use of the property. A contract between the owner of the property and the person to whom it is rented.
It must be a seasonal rental contract, in accordance with the urban lease law. If the rental is made through an agency, the agency will be in charge of all these procedures.
It is important to specify that it is a seasonal rental without tourist services. That is, the property is transferred, but services such as cleaning, replacement of sheets, customer service, etc. are not provided.
Can you rent and provide services?
Yes, you can rent the house and also offer tourist services. In this case we would be dealing with a tourist accommodation contract. Here you can include the services, but it is subject to a series of tax obligations, such as submitting a declaration from the start of the tourist activity.
Therefore, if you rent your home as a holiday home, the contract must specify that it is a seasonal rental contract WITHOUT the provision of services.
Options for renting your home as holiday accommodation
- The first option is to do it yourself. You will be in charge of renting your home, managing the contracts, finding the tenants, and leaving the house ready before arrival and after the tenants leave.
- Alternatively, you can relax and leave the rental management to a professional agency. In this case, we will be the agency in charge of advertising your property, taking care of the contracts, leaving your house ready before and after, and giving all the attention to the tenants before and during their stay. We also look after your home, even if you do not have tenants at that time.
Legal points to consider
One of the biggest concerns is how to declare the vacation rental income of your home. That is to say… What taxes are you going to pay?
A tax declaration (if you live in Spain) can be made as a second home. Once the vacation rental contract is signed, the income is imputed in the income statement as income from real estate capital. You must deduct all the costs involved in putting the house up for rent, such as IBI, insurance, rubbish fee, community, agency…etc.
Register the house as tourist accommodation. In this case, you must register with the Tax on Economic Activities (IAE) to be able to carry out the activity. In this case, the income generated by the vacation rental is considered income from economic activity and you must declare VAT. In addition to quarterly income tax and VAT returns.
In any case, it will always be much easier if you decide to trust professionals who can manage your house as a holiday home while you are not there.
Benefits of renting your house as a vacation home
At this point, once you know the legal options, you may be thinking that it’s not worth all the trouble to rent your holiday home, but we can assure you that if you trust Just Enjoy Holidays to manage your home, the procedure is much simpler than it seems, you will always be advised and it also has several benefits.
- Improves profitability. With proper accommodation management, your house will be occupied most of the time you are not in it, this means a considerable increase in profitability.
- Your house is always cared for. One of the biggest fears for owners is the deterioration or misuse of it. If your home is managed by professionals, it will be 100% monitored, clean and preserved, since we offer continuous maintenance to ensure the quality of the homes we rent.
- Guaranteed payment. With the management of vacation properties you eliminate the risk of non-payment, since the fee is charged in advance
- Your house is ready when you need it. The biggest advantage is that being a vacation rental is totally flexible, so the owner can decide the dates he wants to rent it and when he wants to enjoy it.
If you have decided that you want to rent your house as a holiday home, contact us, and if you still have doubts, call us or contact us through our website, we will advise you on everything you need.
Don’t miss out on the opportunity to get more from your home.