If you have an empty property and you want to earn returns from it, the management of temporary rentals in Barcelona may sound like a very attractive option. However, be aware that this type of rental is not geared towards tourists but rather visitors, like professionals and students, who plan to spend 32 days or more in the city. Barcelona is a destination in high demand among both populations, but knowing the difference between these two types of rentals will allow you to avoid extremely high fines.
Holiday rentals are designed for short stays of less than 32 days. To operate a holiday rental in Barcelona, municipal regulations have a strict requirement that you must have a tourism license. This type of rental is primarily for tourists, implying a high turnover of guests and, therefore, constant management. Lodging has been a pioneer in this type of product and we offer numerous services for property owners with a permit.
Temporary rentals, on the other hand, are designed for tenants who require accommodation for a period of 32 days to 11 months. They do not require a tourism license and usually attract professionals, students or people who move to the city temporarily for work or personal reasons. Increasingly, there are foreign citizens who move to Barcelona for leisure for more than 31 days, but you can rent to them without a license only if this figure is exceeded. For owners, this type of rental offers the advantages of more stability and fewer worries about regulation and day-to-day management.
The fundamental requirement for month-to-month or temporary rentals is that the lease must be for more than 32 days and state the reason for the stay (work, study, other personal reasons, etc.). A well-written contract, setting out the responsibilities of the landlord and the tenant, is essential to avoid misunderstandings. Visiting professionals, students on exchange programs, and families undertaking a move and needing temporary accommodation are the most common users of this type of rental formula.
Although they cannot match the returns of tourism rentals per day, temporary rentals provide stable income throughout the year, with fewer costs related to tenant turnover. It’s a good option if you want less operational burden and more stability in your earnings.
Though both modalities require you to declare the income generated in your taxes, holiday rentals have more complex tax implications because of their designation as an economic activity and the possible applicability of sales tax. In contrast, temporary rentals’ taxes are simpler to manage because they are classified as traditional housing leases. In either case, however, it is always a good idea to have a professional advise you on your tax obligations.
Though in recent years Barcelona has witnessed a very restrictive regulation of tourism rentals, the city’s popularity among digital nomads, tourists and students continues to offer numerous real estate opportunities for owners. Choosing the right type of rental is essential if you want to avoid legal problems yet still enjoy good returns from quality tenants. If you decide to opt for month-to-month rentals, know that it requires dedication, knowledge and efficient management. Get support from a specialized company like Lodging Management in the management of your temporary rentals in Barcelona and you’ll be well on your way to optimizing your income, worry-free.
