Long term vs. short term rentals
Let’s begin by clearing up a misconception! Long term and short term rentals differ mostly not only in the duration of time a property is being rented, but also in the type of the activity.
Let’s take a look at them one by one.
When a property is being rented out long term, there’s always a lease contract being written that states the rights and obligations of both the Lessee and the Lessor. The contract can be written for a definite or an indefinite period of time, but usually at least one year. After it’s expiry, the contract can be renewed.
It’s up to the owner’s discretion whether or not the flat will be furnished and will they require the services of a professional cleaning company on a regular basis.
The rental fee is fixed and besides that the tenant will be obliged to pay the utilities. Furthermore, at the time of signing the contract, the Lessee usually pays two months of security deposit tot he Lessor, which serves as an assurance in the duration of the contract. At the time of vacating the property, the deposit must be returned tot he Lessee, given that they haven’t damaged the flat.
On the other hand, the target audience of short term rentals are mostly tourists and visitors who are looking to sublet for no more than ninety days.
Sublets are almost always fully furnished and eqipped flats and the price includes cleaning and utilities. As a general rule of thumb, linen, towels and basic necessities are provided in most cases.
When subletting in Hungary, you must posess a Tax number that can be obtained from the tax authorities and report the activity at the local authorities’ notary public.
In this age of technology, Airbnb is a widely used alternative of subletting. But what is Airbnb?
Airbnb, or it’s original name, AirBed&Breakfast is an online reservation platform based on sharing. It gives a wonderful opportunity to owners and private individuals who would like to rent their flats, houses or rooms for short term, usually a few days or weeks, while generating revenue.
The platform begun it’s journey in 2008 and became so popular, that millions of travelers and hosts have created a free account with the purpose of advertising their place or finding lodging anywhere in the world.
Airbnb uses a completely secure reservation system when it comes to communication and finances.
How is subletting worth it, you may ask?
The potential of subletting by Airbnb lies in frequent reservations and finding the right fee. It may even exceed revenue generated by long term rentals.
What are the tasks that come with subletting?
Managing the process includes time management, frequent communication, hospitality, being available to your guest when needed, check-out process, cleaning and maintenance and giving tourist infomation. These are all important aspects of providing high-quality service.
Our office has multiple years of experience in property management handling both long term rentals and sublets (Airnbnb). Nearly a hundred owners have trusted us with managing their property. If you have no time, experience, patience or courage to sublet your flat, but you’re interested in trying out Airbnb, contact us and we will help you maximize the financial potential of your property!