How to get your holiday rental ready for a long stay

December 2023

Getting your rental ready for a long-term stay requires specific strategies to meet the needs of guests looking for extended stays. In a scenario where holiday rentals face intense competition, one key to standing out and attracting tenants lies in optimally equipping the spaces in your property. Want to turn your holiday accommodation into a magnet for those seeking a temporary home? Keep reading!

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Dedicating your property to long stays – what does it involve exactly?

Properties dedicated to long stays refer to extended periods, typically one to three months, where guests make monthly payments. With the rise of remote work, these accommodations are becoming increasingly popular as tenants seek comfortable spaces to rest during their daily activities.

These homes should have essential services like an internet connection, a suitable workspace, a well-equipped kitchen, or air conditioning, among others. In this article, we’ll tell you everything you need to know to adapt your holiday rental to the needs of remote workers.

Among its advantages are:

• Provides guests with assured regular income during rental periods.
• Peace of mind knowing the property is reserved for an extended period, avoiding constant guest turnover.
• In some cases, depending on the region, there are tax deductions and reductions in management expenses.
• Allows the creation of a deposit at the end of the reservation, providing liquidity if needed.

However, there are also some drawbacks:

• Less flexibility for the owner in using their property more limitedly.
• Less control over the property, as hosting guests for an extended period may mean not knowing the conditions it’s in.

How to optimise your holiday rental for hosting guests during extended stays?

Here are some essential strategies and tips for hosting guests during extended stays:

• Decorate the property in a welcoming manner: the aesthetics of the property play a crucial role in this case. Decorate the home attractively to create a cosy and functional environment. It’s recommended to use neutral colours, comfortable furniture, homely detail pillows, and minimal items to achieve a welcoming space. 

• Provide amenities for daily life: in extended stays, amenities make a difference. Organise ergonomic workspaces and fully-equipped kitchens to meet your clients’ needs in an unforgettable experience. Offer washers, kitchens, high-speed internet, and all necessary appliances.

• Create a special rate for long-term stays: conduct a market study to establish attractive and competitive rates that benefit both you as a host and your guests.

• Establish clear and concise rental contracts: draft contracts in collaboration with a lawyer, taking into account local regulations. This ensures a harmonious relationship between guest and host.

• Provide long-term maintenance service: continuous maintenance is vital for a long-term rental. Create a cleaning and equipment review program to ensure your property stays in optimal condition and avoids setbacks.

• Highlight local attractions: provide detailed information about tourist attractions, cultural activities, festivals, restaurants, and nearby parks.

• Provide information about local services: detail relevant information about hospitals, health centres, pharmacies, public transportation, and accessibility to essential services like supermarkets to offer a unique experience to visitors.

• Establish flexible policies tailored to tenant needs: ensure you have flexible check-in and check-out policies. Adapt your cancellation policies to guest needs, allowing modifications during the stay as per agreed-upon terms.

• Maintain good communication: establish communication channels such as instant messaging or email and respond appropriately, preferably within 24 hours. This allows for addressing guests’ concerns comprehensively and providing immediate solutions to potential problems.
• Encourage guests to leave positive reviews: this tip allows you to improve the experience for future tenants and provides an incentive for those who leave their suggestions, such as discounts on future stays.

Common concerns among hosts

How to manage and maintain the property in optimal conditions during extended stays?

Managing and preparing a holiday home in optimal conditions during extended stays involves a proactive and strategic approach. Some recommendations to follow are:

• Regular maintenance program: Conduct regular inspections to identify problems before they become major inconveniences.

• Attention to emergent issues: Establish a quick response system for emergent issues. Provide clear contact information to guests for reporting any problems, ensuring a prompt response and efficient resolution of concerns.

• Durable equipment: Invest in durable and quality equipment. Although it may involve higher initial costs, in the long run, this equipment withstands wear and tear better, reducing the need for frequent replacements.

• Open communication with guests: Encourage guests to report any problems or needs immediately.

• Local support team: Having local professionals for maintenance facilitates a quick response to specific issues.

• Holiday rental insurance: Make sure to have holiday rental insurance covering potential damages. Review policy conditions to understand which situations are covered and how to proceed in case of claims.

• Continuous feedback: Request continuous feedback from guests. Their comments can reveal areas for improvement or potential problems that were not evident during regular inspections.

How to prevent the property from becoming monotonous for long-stay guests?

Maintaining diversity and novelty is key for long-stay guests to feel comfortable. Avoiding monotony is essential to keep their interest and comfort over time. Here are some strategies:

• Decoration rotation: periodically change small details in the decoration, such as curtains or accessories. This can provide a sense of novelty without implementing drastic changes.

• Hobby supplies: provide hobby supplies. Depending on the space, these could include books, puzzles, craft materials, or musical instruments. This allows guests to explore new activities.

• Listings of local activities: provide updated listings of local activities. Inform guests about events, festivals, markets, and other nearby activities so they can explore and break the routine.
• Technological updates: make periodic technological updates. Ensure the property has modern devices such as smart TVs, a home cinema system, or entertainment systems that allow guests to enjoy diverse experiences.

How to determine fair and attractive rates benefiting both the host and the guest without compromising profitability?

Here are some strategies to establish fair and attractive rates that benefit both parties in the contract:

• Market research: conduct thorough research of the local market and similar properties in your area. Understanding the competition’s rates will provide a basis for setting your own rates.

• Consider costs: calculate all costs associated with the property, such as taxes, utilities, management fees, and maintenance.

• Set and review competitive rates: offer competitive rates that attract guests without compromising your profits. You can adjust your rates according to the season and local events to optimise occupancy.

• Offer discounts for extended stays: consider offering discounts for extended stays. A long-term tenant represents a stable source of income and is ultimately more profitable than a shorter vacation rental, even if the rates are lower.

• Include additional services: add value to your property by offering additional services, such as regular cleaning, free parking, or access to special facilities if applicable.

• Temporary promotions and discounts: create temporary promotions and discounts to attract guests during specific periods. This can generate interest and increase occupancy during the off-peak season.

• Dynamic pricing models: use dynamic pricing models that adjust automatically based on demand and supply. This allows you to optimise rates in real-time to maximise revenue. Listing your property on Holidu enables you to implement these changes quickly and easily.

• Flexibility in cancellation policies: offer flexible cancellation policies to provide peace of mind to your guests. Flexibility can positively influence their choice of your property. 
• Monitor and adjust: Continuously monitor the performance of your rates and make adjustments as necessary. Fluctuations in demand and competition may require periodic adaptations. 

Ensuring legal compliance and understanding potential tax deductions

Ensuring legal compliance and understanding potential tax deductions related to extended stays is crucial for hosts. Some guidelines to ensure compliance and take advantage of tax opportunities are: 

• Consult with a professional tax advisor: A tax advisor can provide specific guidance on local tax laws and deductions available for long-term holiday rentals. 
• Know local regulations: Tax laws vary by location, and it’s essential to be aware of the specific regulations in the region where the property is located.
• Registration and documentation: Maintain accurate records of income generated by the rental and associated expenses. This will facilitate tax settlement and demonstrate transparency in case of inspection.
• Declare income and expenses: Declare all income and expenses related to the rental. Include any income generated by the rental in your tax return and ensure you detail deductible expenses.
• Specific tax deductions: Some countries or regions offer tax benefits for properties dedicated to such rentals. These may include deductions for maintenance expenses, repairs, or depreciation.
• Conditions for deductions: Some deductions may require the property to be available for rent during certain periods or that you meet specific criteria set by tax authorities.
• Inform guests about local taxes: In some places, hosts may be required to collect local taxes from guests. Ensure compliance with these regulations and provide clear information to guests about any additional taxes.
• Update contracts and agreements: Ensure that your rental contracts accurately reflect tax conditions and any tax obligations that may fall on the guest.
• Periodically review legislation: Tax laws can change, and it’s crucial to stay updated on any modifications that may affect your situation.
• Explore specific deductions: Some regions offer tax incentives for properties that incorporate eco-friendly features.
• Consult government resources: Some governments provide detailed guides and online resources to help property owners understand their tax obligations.

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