Short-term rental: Is it still worthwhile?
If you own a flat in a tourist-attractive location, you have probably already considered short-term rental. According to statistics, this type of rental is far more profitable than long-term rental and can make a significant contribution to the household budget. However, this form of business also brings a considerable administrative and financial burden. There is also unwelcome pressure from cities and their residents on owners of flats intended for short-term rental. Czech media are also keen to escalate the situation.
Are short-term rentals responsible for emptying city centres?
The greatest concern among critics of short-term rental is the emptying of city centres, as residents move to outlying areas. However, the main reason is rather rising rents. The number of flats available for short-term rental is not large enough to help resolve the housing shortage and meet demand for rental housing. The main issue is the Building Act and municipal zoning plans. The approval process is extremely lengthy, and until this situation is resolved, there will never be enough flats. Banning platforms such as Airbnb would not solve this problem.
Inconsiderate tourists
Residents of city centres complain about problematic tourist behaviour. Local people often describe tourists as noisy and inconsiderate towards their surroundings. This is undoubtedly a highly complex issue. On the other hand, nobody complains about the economic benefits of tourism.
It is an accommodation service – just like a hotel
Until a few years ago, the main issue with operating short-term rentals was that accommodation providers did not have to comply with the same conditions as hotels and guesthouses. This raised legitimate concerns among hoteliers, while cities were losing considerable funds that could otherwise have been invested in tourism development. However, this issue was resolved through guidance from the Financial Administration, which set clear conditions for everyone.
Short-term rental as a business activity
The guidance clearly established that operating short-term rentals is a legitimate accommodation service, and landlords should hold a trade licence and meet all tax obligations. At present, operating a short-term rental involves a substantial administrative burden and the obligation to pay taxes and fees. It is also necessary to mention the time commitment involved in operating a short-term rental.
Professional management
The solution is professional rental management by a company licensed to provide accommodation. Professional rental management also has positive effects on city districts with high tourist traffic. Management companies can regulate the rental process and select their guests. In addition, platforms such as Airbnb allow not only guests but also landlords to be rated. Most professionals in this sector also properly pay taxes and meet all legal obligations. Cities such as Prague need tourists and the income they generate, which plays an important role in the city's economy.
How to advertise a flat for short-term rental
The rental process involves advertising the flat, communicating with prospective guests, accommodating guests, cleaning and regular maintenance. All of this requires time, which few people have available today. That is why, at Bohemian Estates, we offer a property management service for flats intended for short-term rental, making things easier for property owners and taking on all responsibility for them. If you decide to use our services, we will enter into a lease agreement with you and our company will take over all obligations. Property owners then simply receive regular rent.