Those who buy a property in Marbella with the idea of renting it out are soon faced with an essential question: should they opt for holiday rentals or long-term rentals? Both options have their own advantages, risks and characteristics. From Marbella Top Homes, with years of experience managing both types of operations, we analyze their differences to help you make an informed and strategic decision.
Vacation rentals -the best known thanks to platforms such as Airbnb, Booking or Vrbo- is, without a doubt, the one that offers the highest profitability in the short term. Marbella, being an international tourist destination with a high season that runs from May to October, allows charging very high daily rates in well-located properties, with swimming pool, near the beach or the old town. During these months, a property can generate more income than throughout the rest of the year.
But vacation rentals also require more active management: cleaning after each guest, constant communication, impeccable maintenance, check-in and check-out, troubleshooting, etc. That is why many owners rely on specialized companies or our network of Marbella Top Homes collaborators, who take care of everything. In addition, it is required to comply with the regulations of the Junta de Andalucía and obtain the VFT license (Vivienda con Fines Turísticos).
Long-term rentals, on the other hand, offer greater stability and peace of mind. A contract of 12 months (or more) allows the owner to forget the daily management, guarantees a constant monthly income and usually involves less wear and tear on the property. In Marbella, this type of rental is increasingly in demand, especially from foreign families coming to settle in, displaced professionals, international retirees or young locals looking to become independent.
The great challenge of long term renting is in the selection of the tenant. At Marbella Top Homes we advise our clients in this process to ensure payment guarantees, solvency, references and contract compliance. We also work with non-payment insurances that cover the owner in case of incidents.
Regarding taxation, both types of rentals are taxed differently. Vacation rentals can be considered an economic activity, depending on the degree of management that is carried out. Long-term rentals, on the other hand, are usually taxed as income from real estate capital, with the possibility of deductions. In both cases, it is advisable to have a good tax advisor.
And what about the appreciation of the property? In both cases, keeping the property in good condition is key. A well-maintained property, which has not suffered excessive use, will be easier to sell or convert into a permanent residence. Here, long-term rentals tend to be “kinder” to the property, while vacation rentals may require more frequent renovations.
So what is the best option in Marbella? The answer depends on the objectives of the owner. If you are looking for high profitability and you have time or managers, vacation rentals can be a great choice. If stability and tranquility are prioritized, long-term rental is ideal.
At Marbella Top Homes we help our clients to choose the formula that best fits their profile, their investment and their lifestyle. And, if they wish, we also guide them in the transition from one model to the other, depending on the market or their needs.
In any case, Marbella remains a place where investment in housing generates real returns. And choosing the right rental model is one of the key decisions to maximize those returns.
