Landlords earn up to 30% more income with mid-term rentals and, on top of that, they are not covered by the Housing Law, which is why this type of rental is a trend in Spain.
And you, have you ever wondered what is the difference between a short term rental and a medium term rental, and which one suits you better?
The reality is that, for business travel, this is the most convenient mode of rental for both parties, lessee and lessor.
In this article we will explain why mid-term rentals are gaining popularity in Spain, what benefits they offer and how they are implemented.
What is the mid-term rental?
A mid-term rental is an accommodation solution that lies between a short-term rental (such as a hotel stay) and a long-term rental (such as a conventional lease).
This type of rental usually lasts between one month and six months, and is perfect for those who need temporary accommodation without committing to a long-term contract.
For example, it is very convenient for business travellers who need to arrive in one city, close business deals and go to the next region to promote the economic benefits of a company.
What is the importance of mid-term rentals today?
Mid-term rentals are gaining popularity due to new trends in the world of work and lifestyle.
More and more people are working remotely, allowing them to move to different locations without having to change jobs.
In addition, business travellers and exchange students are also often looking for medium-term accommodation options.
In fact, business travellers are the main occupants of mid-stay flats or flats.
And, of course, the property does not have to be negatively affected by the Housing Act, which allows landlords to work better and offer better rental prices for tenants.
Difference between short-term and medium-term rentals
But are you wondering what the difference is between short-term and medium-term rentals? Now we will tell you the difference.
It is a type of accommodation that is hired on a daily or weekly basis, and is related to hotels, hostels and tourist flats.
The main advantage of this type of rental is flexibility, as it allows travellers to choose accommodation according to their needs.
Unlike short-term rentals, mid-term rentals offer a more stable solution for those looking for temporary accommodation.
These rentals usually include furnished flats and houses, and often offer additional services such as cleaning and maintenance.
One of the best advantages of this type of rental is that it provides a home away from home, which is very useful for those who have to go to a new city on business.
Why do business travellers use mid-stay rentals and not other types of rentals?
Undoubtedly, because of the comfort and conviviality they can enjoy.
Business travellers prefer mid-stay rentals because they offer much more homelike comfort than a hotel.
In fact, these rentals have all the comforts of home, such as a full kitchen or living room, allowing tenants to prepare their own meals and save on food costs, as well as enjoy a good book.
In addition, renting a flat or house for part-time stays is often cheaper than staying in a hotel for an extended period of time.
Benefits of medium-term renting for landlords
In the case of landlords, there are two major benefits of mid-term rentals:
Landlords can benefit from renting part-time accommodation by earning a regular income without the need to commit to a long-term rental contract.
In addition, these rentals tend to have higher rates than long-term rentals, which increases the return on investment and monthly income.
Reduced tenant turnover
Since mid-term tenants stay for a longer period than short-term tenants, landlords experience a lower turnover of tenants.
This reduces the costs associated with finding and selecting new tenants, as well as maintenance and cleaning costs between stays.
Not included in the Housing Act
The main objective of this law is the regulation of rental costs in lease contracts.
The problem is that they charge 150% IBI and require a bonus of 250 euros each month for social work with young people.
Well, with half-stay rentals, they do not have to comply with this law, which means easier contracting and lower management costs.
How to use mid-term rentals in Spain?
This is the procedure for establishing half-stay rental formats in Spain:
Find a suitable property
The first step to taking advantage of mid-term rentals in Spain is to find a property that suits your needs.
You can search online or contact an agency specialising in mid-term rentals for help in finding the perfect property.
Prepare the property
Once you have found a property, it is important to prepare it for rental.
This includes cleaning, maintaining and decorating the space to make it welcoming and functional.
Make sure the property is furnished and equipped with appliances and kitchen utensils.
Promote your property
Use online rental platforms and social media to market your property to potential tenants.
Include high quality photos and a detailed description to highlight the features and benefits of your property.
You can also create a website and promote your rentals through it, but this option is ideal for you if you are in the business and have several properties.
Establish a rental contract
The final step is to establish a rental agreement that outlines the terms and responsibilities of both the landlord and the tenant.
This is crucial to ensure a harmonious relationship and to avoid possible conflicts in the future.
Being within the legal framework of the agreement between both parties is indispensable for a good working relationship and to avoid short term inconveniences.
In addition, the responsibilities of each party are delegated in detail and both parties agree because, after reading them, they must sign the document.
In short, mid-term rentals are an increasingly popular option for both tenants and landlords.
It offers a practical and economical solution for those looking for temporary accommodation without committing to a long-term contract.
It is also the best option for business travellers because it helps them to reduce costs, and for lessors because it allows them to make better financial returns.