Is it worth renting out the house during the holidays?
Are you thinking of being away during the summer? Renting out your house during that period can be a smart way to monetize the property.
Find out what you should consider before putting your house on the temporary rental market.
With the arrival of summer, many homeowners consider renting out their homes while on vacation.
This is an increasingly common practice, especially in urban or tourist areas, where there is greater demand for temporary accommodation. But does it pay off?
You can earn extra income
Renting out a house for short periods can represent a good additional income - especially in cities with high demand from tourists. Platforms like Airbnb, Booking or local platforms facilitate the promotion and management of the rental.
Example: An apartment in Lisbon or Porto can yield between 70 and 150 euros per night, depending on the location, typology and time of year.
There are costs and bureaucracies to take into account.
Despite the advantages, temporary leasing entails expenses such as cleaning, maintenance, water/electricity consumption, and even platform fees. Additionally, it requires:
- Register the property as Local Accommodation (AL);
- Inform guests to SEF;
- Declare income to the Tax Authority.
If you do not have availability to manage the property, you may have to hire a management company, which further reduces profit.
3. Safety and property care.
If you are going to leave your house with strangers, it's important to take precautions:
- Save personal and valuable items.
- Install secure locks.
- To have adequate insurance for short-term rentals.
Fiscal impact.
Short term rental income is subject to IRS taxation, and can be either included in the overall income or subject to autonomous taxation.
Inform yourself with Finance or an accountant to avoid surprises and understand if it is worthwhile in your specific case.
In general, renting out your house during the holidays can indeed be financially rewarding - but it requires planning, fiscal responsibility, and some dedication. If done safely and legally, it can turn your space into a source of seasonal income.
Read more: Renting a house: What is it and is it worth buying to rent?
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