Long- or short-term rental dilemma for landlords

Thousands of apartment owners across continental Greece have in recent years pondered whether it makes more financial sense to put their property up for short- or long-term rental.

This year, in particular, when short-term seems to be bouncing back, the dilemma concerns many landlords/hosts who over the last couple of years chose to abstain from the short-term leasing of their apartments, coming off the online platforms.

In practice, takings from Airbnb-type rentals may seem appetizing, but they also have significantly higher expenses compared to long-term rentals. Even so, the rise in short-term rates this year points to more favorable conditions for hosts in several regions and property types. Especially when it comes to flats at points of high tourism interest, such as Koukaki that is near Plaka and the Acropolis in Athens, many hosts are in doubt as to whether their should return to online platforms.

Data show that right now a third-floor renovated flat of 75 square meters, in a building from 1980 can secure monthly takings of 2,040 euros. That is based on an occupancy rate of 24 days per month at an average of €85 per night. Such figures constitute the annual mean rates, as in the summer season, i.e. from early June to late September, the average rate per night at Koukaki tops €110.

Nevertheless, as the head of Mint property management company and the association of short-term property leasing companies (STAMA), Nasos Gavalas, tells Kathimerini, “one should factor in a series of expenses, starting from the 15% commission (€306) to the platform, and the various utility and cleaning bills estimated at €170/month.”

He adds that the income tax from renting comes to €184/month and if it concerns a property utilized as an investment (i.e. not being the host’s main occupation) then there is another 20% commission to the management company for promoting and operating the asset, i.e. another €408.

If you also include furniture amortization costs (some €100/month), net earnings come to just €872 a year, he adds.