Make the most of your property with short-term rental. Here’s how.
Do you own a property in an area popular with tourists that you have still been unable to let on a long-term basis? Let it short-term. We will tell you how, without having to deal with all the bureaucratic steps associated with operating a short-term rental.
If you have looked into this area before, you have probably noticed that operating a short-term rental is no longer as easy as it used to be. Some time ago, the Financial Administration introduced new guidance that put a stop to the freedom previously enjoyed by all short-term rental operators. They are now required to pay health and social insurance contributions and tourist and spa fees to the municipality, and to report accommodated foreign nationals regularly to the Foreign Police. As this guidance classifies the activity as a trade, it is also necessary to register a trade and mark the premises in accordance with the law.
As a short-term rental operator, you must also pay VAT under the VAT Act, for example if your turnover over the past twelve months has reached at least one million Czech crowns or if you have registered for VAT voluntarily. Unfortunately, you will also need to pay personal income tax, and bear in mind that accommodation services are subject to EET, meaning that you are required to record revenue through the electronic sales registration system.
Operating a short-term rental also involves other essential steps that require a great deal of time and energy. This includes property management itself. To ensure the rental is effective, you need to advertise it, communicate with prospective guests, accommodate them, collect payments from them, and allow for regular cleaning and maintenance. The amount of bureaucracy and the fees involved make operating a short-term rental an activity that is no longer worthwhile for everyone.
On the other hand, there is a solution that allows you to retain a regular income. When managed effectively, short-term rental can be considerably more profitable than long-term letting. This is particularly true during Advent, when tourists visit Advent markets and seek private accommodation. So if you own a property in cities such as Prague, Olomouc, Brno or elsewhere, do not be discouraged by the number of obstacles.
The solution is offered by the independent real estate company Bohemian Estates International, which, by entering into a lease agreement with the property owner, takes on all the responsibilities. “If someone chooses to arrange a short-term rental with us, we sign a lease agreement with them, thereby becoming the party responsible not only for the rental itself, but also for meeting all official requirements and paying all statutory charges,” explains David Novotný, founder and CEO of Bohemian Estates International, outlining how the short-term rental service works.
As a property owner, this allows you to continue earning income while leaving all the worries behind. “Under the agreement between us and the property owner, we assume all risks and responsibility. The figures clearly show that professionally managed properties achieve higher occupancy rates, and it can be assumed that working with us is not financially demanding for the property owner. On the contrary, in the long term, this service can pay for itself,” concludes Novotný of Bohemian Estates International.