With a seasonal rental, the owner favors flexibility and relatively short stays, from a few days to a few weeks. This type of rental is generally done in advance and for the holidays: Christmas, Easter and the summer season for example, when the demand for accommodation is greater, especially in tourist areas with particular points of interest. With this type of rental, you can book as soon as possible to have the property you want. Long-term rentals are generally rentals that last at least 6 months and can go up to several years or even decades depending on the lifestyle choices of the tenants.
This article is written in collaboration with Nadège, director of our agencies concierge service in Fayence, Bagnols et Roquebrune.
Definitions of seasonal and long-term rental
According to the government website and on the basis of Law No. 70-9 of January 2, 1970, the definition of seasonal rental is as follows: For the purposes of this law, the rental of a building concluded for a maximum and non-renewable period of ninety consecutive days. To go further: according to article L. 324-1-1 of the Tourism Code, furnished tourist accommodation is furnished villas, apartments or studios, offered for rent to transient customers who do not take up residence there. and who makes a stay there characterized by a daily, weekly or monthly rental.
Long-term rental is directly linked to the residential lease, defined in law no. 89-462 of July 6, 1989. The residential lease is a contract between the landlord and his tenant for the occupation of a housing or mixed-use premises (professional and residential use) in return for the payment of rent, for a period of 3 years when the lessor is a natural person and 6 years if the lessor is a legal person. The lease is tacitly renewable: it is automatically extended on expiry, without action by either party. Its termination may occur at any time subject to compliance with a minimum notice period of generally 3 months.
Difference between seasonal and residential / long-term rental:
There are two major distinctions between these rental methods:
1 – In short-term rental, the tenant does not take up residence in the rented accommodation. He lives there only for holidays or a short stay.
2 – The seasonal rental is concluded for a maximum duration of 90 consecutive days to the same person.
Unsurprisingly, the fundamental difference is the rental period. More specifically, seasonal rental has a maximum duration where residential rental has a minimum duration and is tacitly renewable. Add to this that in form, the seasonal rental is almost always furnished. In the case of long-term and residential rentals, there will be more unfurnished or partially furnished accommodation.
Advantages of a vacation rental
The advantage most highlighted in the context of seasonal rental is the expected profitability vis-à-vis the real estate investment. Everyone knows that buying a property, especially in popular towns in season, is a real long-term investment. The question of the financing of profitability therefore quickly arises. Seasonal rentals have good press on this point and rightly so: in the tourist sectors, the increase in demand during the season is such that prices are significantly increased. Profitability therefore explodes naturally and allows good returns on investment.
Advantages of a long term rental
Unlike short-term rentals, residential rentals do not benefit from price fluctuations during the summer season. Whatever the time of year, the rent remains fixed for the tenant. Profitability is thus lower since it does not take advantage of periods of high demand. That being said, it has the advantage of offering the security of rented accommodation for a long period. Where the seasonal rental can be empty for several days or weeks a year, the owner of a residential rental will have a certain serenity vis-à-vis this point. Be careful though: at the end of the lease, finding a serious tenant can be tedious and will inevitably take much longer than in a seasonal rental. It should also be noted that due to the permanent presence of the same tenant over a long period, the cost of renovating or cleaning up the accommodation is higher at the end of the rental, where it is carried out gradually during the seasonal rental.
Specificities specific to short-term rental:
There is no ideal property for seasonal rental, nor perfect property for residential. However, depending on the characteristics of your accommodation and its location, it may have better potential for seasonal rental or vice versa. To help you identify the real potential of your seasonal rental investment, YourHostHelper concierge agencies offer you a free one-year rental income estimate. This personalized study will allow you to know the potential of your Airbnb rental property on the basis of reliable and professional key indicators.
Future owners and current owners of properties for seasonal rental, do you want to popularize your accommodation and encourage the arrival of new tenants all year round? We suggest you read the following article in this dossier on the world of airbnb concierge services: What are the vacation rental websites? You can also consult the other articles in the dossier via the links below:
File: All you need to know about the Airbnb concierge service and rental management
What is seasonal rental?
Seasonal and long-term rental: what are the differences?
What are the vacation rental websites?
How does an Airbnb concierge work?
What are the services of a concierge?
What price and what percentage does a concierge charge?
What is the role of an Airbnb concierge agency?
How to put an apartment under rental management ?
How to get started in concierge services?
