A new chapter for short-term rentals after the pandemic

Before the pandemic, short-term rentals were a gold mine. According to a 2021 study by the Institute of Planning and Development, compared with the period before the onset of the pandemic, the number of flats and houses offered for short-term rental in the capital fell to just under seven thousand accommodation units – a drop of half. Most of them also remained vacant for long periods. Property owners and investors therefore reassessed their approach and switched to mid-term and, more often, long-term tenants so that they would not depend on the normal functioning of tourism. This is, after all, a highly uncertain factor.

Uncertain returns?

“Short-term rentals are intended primarily for owners of flats and apartments in city centres or touristically attractive locations. Rental periods range from a matter of days up to one year. In addition to higher returns compared with long-term rental, another advantage of short-term rental is that the flat experiences less wear and tear. It is not occupied continuously, and tourists or managers, who are the most common guests, generally use it only for overnight stays,” explains David Novotný, owner and managing director of Bohemian Estates real estate agency, with eighteen years of experience in the sector.

However, to achieve a higher one-off income, you need to have the flat rented out for most of the month. In reality, owners are often glad to achieve even 50% occupancy during the season. Once you calculate the economics of the investment, returns from short-term rental fall significantly. The frequent turnover of guests is another challenge. The owner usually has to arrange the handover of the flat, including the keys, and take everything back from guests at the end of their stay. Cleaning and preparing the property for the next visit must also be taken into account, which is time-consuming in itself. The solution is to hire a specialist company.

“With a professional and experienced property manager, you will earn an average of 5,2 % more than if you manage the flat yourself. Above all, though, you will save 960 h a year and be able to sleep soundly. The manager will handle the professional presentation of the property, advertising, marketing, viewings, administration and money transfers,” explains David Novotný. You can therefore be sure that guests will find out about your flat or apartment and that it will remain consistently occupied. “We have our own robust booking system connected to all major booking portals. We also work with international companies that regularly accommodate foreign employees, as well as with travel agencies,” adds Novotný of Bohemian Estates.

The rebirth of short-term rentals

Despite rising prices across the board, the number of guests in Czech hotels and guesthouses is increasing, as confirmed by data from the Association of Hotels and Restaurants. With the growth in tourism, the number of short-term rentals in large cities is also booming again. The appetite for travel has persisted after Covid, and more flats for short-term stays are returning to the market after a forced pause.