Seasonal rental is a very advantageous real estate investment in 2018, if you have the necessary knowledge of the different facets of this business. For a successful seasonal rental in 2018, we give you some advice.
Invest in a tourist area
To succeed with a seasonal rental in 2018, you will need to find accommodation located in a tourist area. It can be an area near a beautiful beach, in the mountains, or even in large cities with high tourist traffic. Also target places that host special events throughout the year (festivals, fairs, conferences, etc.) or that have the greatest number of monuments to visit (museums, parks, etc.). Wherever you decide to invest in seasonal rentals, also think about finding a specific target (locals, foreigners, seniors, young people, etc.).
Offer a rent adapted to the market
Investing in seasonal rentals is profitable on the condition of proposing a price adapted to the investment sector, and to the environment of intervention and to the existing offer. To dare to offer a high-end service, at a high price, you must also offer substantial equipment. The ideal is to align your price with the rents offered by properties similar to yours.
Evaluate the return on your investment
In general, a seasonal rental is more profitable than a traditional monthly or annual rental. But calculating the return from this type of rental is sometimes more complex and hypothetical, as the number and duration of rentals are more uncertain.
To assess the return on your investment, here are some basic things to consider:
- The purchase price of the home: assess the amount of monthly payments if you have used a mortgage.
- Charges or condominium charges as the case may be: maintenance, renovation, rental management fees.
- Rental income: calculate an average return based on different scenarios, taking the most optimistic and the most pessimistic.
Invest in equipment and furnishings
In terms of seasonal rentals, the equipment and furnishings of your home take precedence over its exterior appearance. Remember to provide basic equipment such as bed, table, storage, etc. Without forgetting to add certain household appliances to stand out from the competition (microwave, oven, washing machine, dishwasher, etc.). And don't neglect essential consumables like toilet paper, oil, coffee, cleaning products, etc.
Write a unique ad
The majority of tourists search the Internet for vacation rental accommodation. Therefore, it is important to take good care of your ad. Written by yourself or by an agency, it must contain all the details of the accommodation: surface area, number of rooms, equipment, additional services, rent. To make the difference, you can also add a small description of the region, city, neighborhood, tourist attractions, events, amenities or activities available to tenants.
Opt for rental management
Rental management is an activity that makes it possible to better manage a seasonal rental, especially during periods when tenants follow one another at high speed and at a frequency that is sometimes unmanageable. Entrusting the management of your accommodation to a professional allows you to relieve yourself of all the procedures and procedures to be done before, during and even after the departure of your tenants.
Don't neglect taxation
The seasonal rental is taxable like any other commercial activity. It is the furnished rental regime that applies to this type of income, which will therefore be taxed in the category of industrial and commercial profits (BIC). Two options are available to the owner:
- The micro-BIC which offers a 50% flat-rate reduction on gross income.
- The real simplified BIC which allows all charges to be deducted from income. This option is more advantageous, but it will be necessary to make a more complete declaration.
In short, choosing to invest in seasonal rentals only has advantages for owners. The key is knowing how to choose your sector of intervention, your target and refine your offer in relation to the current market.
