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Short-term accommodation services

Some real-estate investors focus on providing short-term accommodation services by renting furnished apartments. There is demand for furnished apartments in many cities. However, make sure you know the situation in your local market. The profits of short-term accommodation services may exceed those of long-term leases, but the operation also usually requires more work.

There are two different strategies for short-term accommodation services. If you offer your apartment for stays of up to a single night or a few nights e.g. via Airbnb or Booking.com, your operation is legally considered a professional accommodation business. More information regarding the rules of such an operation is available here.

Another strategy is to offer furnished apartments with a standard lease. There are various situations in life where a furnished apartment may come in handy, either for a short period or a longer stretch. For instance, there are temporary workers, families that have to leave their homes due to major renovations or water damage, divorces etc. In some areas, there might be seasonal peaks that require extra accommodation capacity. Outside the high season the apartment can be rented out for longer periods.

Whichever strategy you choose, you should openly inform the housing company of the way you do business. Frequently changing tenants may cause confusion amongst your neighbors. However, open communication usually prevents misunderstandings and complaints.

The rules regarding short-term accommodation services are yet to be fully established, and many cities have sought to restrict the services in residential apartment buildings. Some cities have gone as far as restricting short-term leases that are in fact comparable to standard living arrangements. Therefore, you should get to know the policies in your own municipality before choosing short-term leases as your strategy.