Buying rental properties and guaranteeing extra income every month has always been a Brazilian dream.
Services such as Airbnb and Alugue Temporada emerged and allowed this new way of renting, putting you in contact with clients to rent your property for short periods, sometimes just one day. It is important to remember that this rental model also follows the tenancy law .
Recently, Airbnb also made long-term rental available on its platform, but which model is more worthwhile? What are the pros and cons?
Return to time
When making an investment, one of the main goals is income.
Vacation rentals have been shown to generate significantly higher returns than traditional rentals.
A survey carried out by Nested estimated how long it would take to recover the investment, comparing the rent per season with the traditional one.
The research was carried out based on the average price of a three-bedroom apartment in the city of São Paulo and found that, through traditional rent, it would take 279 months to recover the amount invested.
With seasonal rental, the estimated time for return on investment would be 93 months.
Thus, according to the survey, with vacation rental you can rent your property for a third of the time and receive the same return as traditional rent.
Flexibility: rent one day, use the next
Another great attraction of this rental model is its flexibility.
As your property will be rented for short periods, you can set aside a few days for you, or a family member, to enjoy it. A very attractive feature for those who buy apartments outside the city where they live.
This property can therefore become both a source of income and a travel destination.
Location: the key to success
Buying a property and receiving higher returns than traditional rent sounds great, doesn’t it?
But it’s no use if there aren’t people interested in renting it.
As we talked about in the matter Real estate investments: how they work and why to consider , the location of the apartment is essential.
But in the case of vacation rentals, it’s even more important because you need a steady stream of renters.
It is important that you look for properties in already consolidated regions.
Also, as your audience will be mostly tourists, you need to choose a region with great tourist appeal and good transport infrastructure.
More money, more work
Not everything is flowers.
Seasonal rental offers superior returns, but it also requires more effort.
Unlike traditional renting, where your tenant will likely stay a few years in the property, with seasonal rent you will, if all goes well, have several tenants per month.
And each person will need a little of their time, whether to talk about the property, about the region, about payment or handing over the keys.
And don’t underestimate this factor. The platforms, which mediate this service, claim that considerate homeowners have a higher occupancy rate and are able to charge higher rents.
Many people who want to invest in real estate, however, don’t want this headache.
Therefore, it has become increasingly common to hire specialized people to manage the seasonal rental of properties.
The real estate market is entering a new cycle of growth, attracting the eyes of investors, and vacation rental appears as a new way of investing.
If you want to take advantage of this moment and do not have the capital to purchase a property in full, we will soon teach you a way to invest in this market without spending too much.