Is It Worth Renting Your Vacation Home When You Are Not There?

You have invested in your favorite travel destination by buying a vacation home – the perfect place to stay when enjoying time away. However, you have only so many weeks to spare to use the property yourself. Is it worthwhile to rent your vacation home to other travelers when you aren’t using it? Could this be a profitable way to get back some of your original investment in the property?

Should you rent out your vacation home to tourists?

You’ve invested in a beautiful vacation villa or apartment, an extension of your home base located in your favorite city. However, you find you can only spend limited time in the new property due to work commitments and the property stays empty for months.

Have you ever thought of renting out your vacation property when you aren’t using it and could you make it into a profitable vacation rental? Handling this the right way can be hugely profitable and can offset maintenance costs while getting some of your investment back into your bank.

Record tourist numbers in Europe

According to the BBC, Spain alone has seen a record 85.1 million international visitors during 2023, marking a 19 percent increase from the previous year. However, some vacation homeowners may be reluctant to rent out their precious property to tourists. Yes, there are some horror stories of tourists behaving badly, with locals in some Spanish locations fighting overtourism.

Christian Wolf, CEO of CW Real Estate Ibiza is an expert in luxury properties and says:

Renting out your holiday let has significant benefits, but also comes with several drawbacks. The key is to weigh them up and decide what’s right for you.

The pros and cons of vacation rentals

Wolf outlines what you need to know about renting out your vacation home when you’re not there.

“A holiday let is a property that you rent out for short-term stays to vacationers, potentially generating significant income, especially in popular destinations like Ibiza,” explains Christian.

When you are not using the property, it stands there gathering dust. However, one of the advantages of renting it out includes better property upkeep, as well as potential tax benefits.

“On the other hand, there are cons to consider, such as potential wear and tear, the effort of managing bookings, and ensuring compliance with local regulations,” Christian added.

Tips for renting out your vacation home

Christian went on to share his top tips for renting out your vacation property safely and effectively.

1. Screen your guests carefully to avoid potential issues.
2. Invest in quality insurance to cover any damage or liabilities.
3. Maintain your property to high standards to attract repeat guests.
4. Consider using a reliable property management service to handle day-to-day operations, ensuring a hassle-free experience for both you and your guests.

“Understanding these aspects can help you make informed decisions and maximize the benefits of your investment,” Christian added.