Been thinking about renting your apartment for short term rentals with AirBNB instead of one long term contract? You would be surprised how much more money you can make.
Demand for short term accommodation is growing as more people consider staying in a private property rather than a hotel. Amazingly 25% of all travelers now stay in non hotel accommodation. Websites like AirBNB & Homeaway are helping to drive this surge.
The biggest benefit to property owners is the increase in income which can be anything from an extra 30 to 100% per month. Long term yields are around 3.5% and short term can be from 7% to 10%. Here are some examples of properties in Prague comparing yearly income in CZK for long term to short term:
* Above data shows gross income after commission before electricity, water, etc. expenses
Short term renting om AirBNB gives you the added flexibility of being able to say when you want to rent out the property and when you don’t. Dates can be blocked for your personal use.
The downside is that short term rentals require more management. Someone must do the cleaning, check ins, bookings, etc. It is very important to manage photos, descriptions, listings, pricing and logistics. Poorly managed properties generate poor returns. Daily prices need to be adjusted for the season, day of the week, special events and so on in your AirBNB calendar. A property that rents for 40 EUR in the off season could rent for 120 EUR in summer.
You need to consider who will do this work. It could be you, someone in your family or circle of friends or a property management company.
Honeco can give you advice on any of these issues. We are a professional short term property management company with 15 years of experience who can maximise your income and take away the work. We constantly adjust the price of your property and monitor market trends. Our team manages all parts of the process. Feel free to contact us anytime on our Facebook page or our website www.Honeco.cz