Holiday rentals: Long-term versus short-term

Discover the advantages and disadvantages of the two options

  • What is the difference between long-term and short-term rentals?
  • Advantages of long-term and short-term holiday rentals.
  • Disadvantages of long-term and short-term holiday rentals.
  • What do you need to do to get your property ready to be rented?
avantages et les inconvénients des locations courte et longue terme

December 2023

More and more people are looking to let out their homes as holiday rentals, seeing it as an excellent investment. So, if you’re set on renting out your home, you need to consider your financial interests and the rental period. Below, we explain everything you need to know to determine the most profitable option for you and what taxes you’ll need to address if you decide to rent out your property as a holiday home.

Also, bear in mind that renting out your home doesn’t guarantee a stable income. It largely depends on whether it’s high or low season, as well as the weather of each season and the location of the property, among other factors. However, if you play your cards right, you can engage in a very lucrative business and make good use of that property you don’t normally use or buy with the intention of investing.

What’s the difference between long-term and short-term rentals?

If you want to rent out a holiday home for more than a month, then it’s considered a long-term rental. On the other hand, if the time is less than that period, we would be talking about a short-term rental. How do you choose the most suitable option? What aspects should you consider?:

  • The duration you want to rent out your holiday home.
  • What type of guests do you want to accommodate (families, tourists, young people…).
  • The availability of your flat when renting it out.
  • If the equipment you have is suitable.
  • The location of your holiday home.
  • Compare your rates with the market on a holiday rental portal.
  • Assess the taxes for short and long-term rentals.

Once you have all this clear, you can advertise your holiday home with sufficient notice to welcome your future guests. It’s important to post high-quality photos showing different angles of each room in the house, and here’s a photography guide you can consider.

Advantages of long-term and short-term holiday rentals

Advantages of Long-Term:

  • Monthly costs will be covered.
  • Ad and marketing management will be more economical.
  • Tenants usually pay household bills.
  • Larger deposits, providing greater security.
  • You won’t have to constantly look for tenants.
  • Taxes are paid once, at the end of the year.

Advantages of Short-Term:

  • Better control over your home’s availability.
  • Good earnings if billed per night or week.
  • Easy access to the house to check its condition.
  • Lower taxes than long-term rentals.
  • Positive reviews can make your property attractive.
  • Less wear and tear on the house and its contents.

Disadvantages of long-term and short-term holiday rentals

Disadvantages of Long-Term:

  • You must keep the property in good condition, incurring expenses.
  • You can’t use your home, especially if rented for several consecutive months or years.
  • Wear and tear on the entire property due to daily use.
  • Less control over the property until it’s vacated.

Disadvantages of Short-Term:

  • You also need to keep the property in good condition for positive reviews.
  • Competition with other holiday homes in the same area.
  • Income will be more irregular than in long-term rentals.
  • Frequent turnover of guests.
  • Continuous maintenance and cleaning are necessary.

What do you need to prepare your home for renting?

Preparing for guests:

Your home should be equipped with the minimum necessary furniture for guests to feel comfortable. It’s crucial to provide a good Wi-Fi connection, as few will book your holiday home without it. Also, supply your guests with clean sheets, spare towels, and hygiene products like soaps and gels.

Setting house rules:

Specify the house rules before guests arrive. If you have a specific guest profile in mind, explain that they must follow basic rules for good coexistence. It’s advisable to display these rules prominently, such as on the entrance door or in the room. Another option is to email the house rules to guests before arrival and ask them to confirm in writing that they agree, ensuring to avoid misunderstandings.

Providing information to guests:

Your guests may not be familiar with the area, whether they’re traveling for pleasure or business. It’s advisable to provide them with a city map to easily locate points of interest. Similarly, they’ll appreciate you explaining where essential items are located (glasses, broom, bedding, etc.), as well as the proximity of supermarkets and nearby restaurants.

Emergency contact number:

While nothing may happen, it’s always recommended to provide an emergency contact number. Guests will be more at ease knowing they can rely on the homeowner in any situation, and so will you. If you desire more privacy, use two different numbers, one for private matters and another for your guests.

Of course, don’t forget to keep your holiday home occupancy calendar updated. An unforgivable mistake would be for two people to rent a stay on the same dates or have overlapping days. This process is easier to automate with the help of Channel Manager platforms like Holidu.

Other posts in this category:


Legal requirements for the management of holiday rentals in Murcia


Make your holiday rental pet-friendly


Design of outdoor space for holiday rentals


Using renewable energy sources in your holiday home


Art and crafts in holiday rentals


Organising workshops or seminars in your holiday rentals