Pros and cons of holiday lets compared with traditional lets

The main pros and cons of holiday lets have to do with returns, being able to use the home yourself and the management workload. Holiday lets can offer more flexible pricing and allow the owner to block out dates, but they also mean variable income, higher turnover, frequent maintenance and complying with administrative and tax obligations.

When someone buys a flat as an investment, they should ask themselves which option is the most profitable so they can get the most out of it. The most important thing is to know all the pros and cons of holiday lets compared with long-term lets, so you can make a decision. It is also very important to compare the home with others nearby and ask yourself a few questions: is it an area with a lot of tourism? What is the average price of each type of let? Do I want the flat to be available in case I need it?

Returns, availability, risks and management you should compare before choosing a type of let

Higher income

This is without doubt one of the biggest advantages. Because you let by the day or week, you can adapt the price to demand and maximise your profits. If you do it well, in the high season you may be able to earn the same in 4 days as in a whole month as a long-term let. It is very important to keep prices up to date and to find out about any event or date that may bring higher occupancy. It isn't easy to do by yourself, so we recommend hiring a specialist company to optimise your prices, such as beBalmy.

Being able to use the home

As these are short stays, you can use the home whenever you want: you just need to block out those dates so nobody books them. This allows more flexibility, especially for people who travel a lot and don't have another home in that town. It is also an interesting option for earning money from the home on the days you're away.

No risk of non-payment

All bookings made through a website such as Airbnb or Booking are prepaid, so the guest has already paid for their stay when they arrive at the home. This gives the owner a lot of peace of mind.

Lower risk of squatting

As it isn't their main home and the contract is for less than 30 days, there is no risk of a guest staying longer than they are entitled to. In this respect it is the same as a hotel, where there is a set period of use.

The home is better looked after

Being able to get into the home after each guest leaves and having to get it ready for the next one means everything is kept in perfect condition. As well as the check carried out during cleaning, guests will suggest improvements that make it more and more welcoming. With a long-term let, after several years… you may find a house you barely recognise!

Disadvantages of holiday lets or short-term lets

A lot of management

Bear in mind that there are many tasks involved in a holiday let. Cleaning after each check-out, handing over the keys, having several sets of sheets, registering guests, staying in touch with the guest throughout the stay… You can do all this yourself if you have the time and enjoy it, or you could hire a specialist external company to take care of everything in return for a percentage of the income. In our case, we offer this service from 8%.

Variable income

You won't be able to predict your future income because it will vary. It is important to keep a closer eye on things and think about long-term returns: even if the total is higher than with a long-term let, you need a cushion for the low-season months. If you want to go deeper into the comparison, here is our guide to holiday lets vs long-term lets.

More maintenance

In a holiday let, every detail matters. You can't have a wardrobe that doesn't close properly or wifi that doesn't work perfectly. You need to stay on top of everything and listen to your guests' needs so your rating improves and you can get higher occupancy. An external company such as beBalmy can also take care of all this so you don't waste time and can stop worrying. If you are unsure whether to do it yourself or hand it over, compare professional management vs managing it yourself.

With these pros and cons, it should be clear how worthwhile it is to run your home as a holiday let, as you can avoid most of the drawbacks by using a holiday-let management company such as beBalmy, where we give you a complete maintenance service for the flat in return for a percentage of your profits (with no minimum per booking). And if you still have doubts, here we debunk some myths about holiday homes.