The luxury short-term rental market is growing rapidly. This is certified by both the requests arriving on the Luxforsale portal and the data arriving from abroad.
Some numbers? For the year 2022 there was an increase of 39% in the city of New York alone, a + 27% in London and an increase in requests equal to 15% in Singapore. A quick tour of the world that attests to a constantly growing trend: people are looking for short-term rentals in luxury homes.
In a nutshell: there is a boom in requests for Short Rent. But what are the reasons?
Luxury short-term rentals: many advantages
When a trend goes viral quickly, it means it hides many advantages. Many owners of luxury villas have noticed this, who have shelved the idea of the sale and are focusing on the opportunity to rent their prestigious homes for a short period of time.
Here are the main benefits of the Short Rent:
1) Constant control and maintenance: renting a property for a short period means keeping it in optimal conditions. Constant cleaning, maintenance of the home, effective control of the functioning of all appliances and much more;
2) Increase in income from rental income: compared to the classic rental, the Short Rent of luxury homes allows you to increase the collection of rental income. In the eyes of the customer, it is still convenient, because it is an option valid for a short period of time, without the need to draw up multi-month contracts. This solution could be ideal, for example, for people who travel for work and need a high-level home to be used as a base for attending conferences, fairs and events;
3) Elimination of the risk of arrears: long-term rentals, as we know, hide an implicit risk of arrears, with all the legal and economic consequences that follow. With the Short Rent, the risk of arrears is almost eliminated, because the user enters the property only after paying the rent relating to the pre-established time of stay;
4) Insurance up to €3 million for property damage and civil liability: through the main luxury short-term rental platform, Airbnb Luxe, insurance is in fact provided, free of charge and included at the time of uploading the ad, up to €3 million for damage to the property and/or problems with guests.
5) Possibility of using the property during the course of the year: those in possession of a luxury property to be rented for short periods can also decide to set the rent in a seasonal perspective, leaving free time spaces for use to children, relatives and friends.
6) Increases the value of the property in the event of a future sale: the Short Rent allows you to keep the property in excellent condition, making it constantly livable and maintained. This, of course, does nothing but increase its value in anticipation of a future sale.
Short Rent: the situation in Italy
As seen at the beginning of the article, Short Rent is literally exploding abroad. Even in Italy, however, the situation is rosy and many real estate companies are successfully approaching this solution. This is because it is an excellent way to invest in real estate with the idea of making the property income, no longer with only and exclusively the classic rent, but also by exploiting the short-term rental option. To understand the growing attention towards Short Rent, just think that in the main Italian cities such as Milan, Florence and Rome, there are no longer luxury properties to be rented out as they are all income-generating, but with short-term rentals.
What if the property is for sale?
Short Rent is a solution that works optimally even when the property is for sale. In fact, to get the most out of short-term rentals, it is only necessary to coordinate as best as possible with the real estate agency in case of visits to the house.
At Luxforsale we are already successfully experimenting with this solution, thanks to the creation of a Hub specialized in short-term rentals, called Luxforsale Short Rent. The goal of this portal is to help agencies and owners of luxury villas to make the most of the short-term rental solution, a path that can make property management sustainable through a constant income capable of maintaining property in excellent condition and make it even more attractive for sale.
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