Know how to monetize your property
You have a property you don’t use, but you would like to monetize it? Know there are some ways to do it. Follow all the steps in this article and decide which is the best option in order to monetize your property.
Portugal is, definitively, one of the most fashionable countries in Europe. Of course, this makes tourism grow exponentially, both in the urban centres and in the Algarve. Following the growth of tourism, is the growth of opportunities to monetize your property. If you never thought about this, know that you have a lot to gain!
There are two basic types of leases, the long-term, and the noted, short-term lease. The choice only depends on you, and the kind of use you give to your property.
Long-term lease
Long-term, as the name shows, consists of a long period of lease. It is a way to monetize your property, in a constant and safe process. A contract must be attached to the long-term lease, which has a duration of at least one year and may be renewed.
In the same topic of long-term lease, you have two solutions to monetize your house.
- Traditional lease – This is a well-known way, as well as the oldest. You should be aware that the house will be inhabited for at least a year. If you just want to make the house available for a shorter period of time, you should agree on this in advance with future tenants. This type of lease implies the declaration of the contract to the finances, with high sanctions for those who don’t.
- Room leases – If you have an empty room, why not monetize it? This is an option that has more and more supporters and helps balance the budget at the end of the month. You should guarantee that the chosen person you’ll share your house with fits your lifestyle perfectly.
Another way of renting is to rent to students who are looking for houses in university cities. Because it is cheaper, students rent rooms, usually, in flats that are also inhabited by other students.
Be well-informed on how to proceed with the lease contracts with the Finances department of your area.
Short-term lease
Lately, we have heard a lot about Alojamento local, Airbnb, or even holiday rentals. This is the best way to make money in a short time. Be aware that, you’ll have to take some time for cleaning, check-in, and check-out. These rentals are very seasonal, have better accession in festive seasons or hot months, this happens especially in the Algarve.
- Alojamento local – The alojamento local subject at the end of 2018, was given to city councils, and therefore, if you intend on this, you must communicate your intentions to this entity. You can do it through the website Balcão Único.
The alojamento local must be in perfect condition. It must ensure the proper functioning of the equipment and installations and be well-ventilated. A fire blanket and an extinguisher are required, as well as a first aid kit and a visible national emergency phone-number.
This type of accommodation generates good results, especially if the surrounding area has touristic sights, but you’ll also have to spend some time in this business. The cleaning and the proper function of the equipment are important, for good quotations in websites like Airbnb or Booking, which are intended to advertise your business. (if you’re considering starting an alojamento local business, you need to know all the rules before doing so)
- Holiday rentals – It is during holidays, especially in summer, that people most often look for houses to rent. The length of stay can vary from one week to one month. This type of rental is more sought after by families, as it becomes more practical, for example, for those who have kids.
As the length of stay is longer, you don’t need to spend so much time on cleaning, check-in, and check-out. In many cases, the owners decide to rent only in the summer and can enjoy the property during the winter.
For holidays rentals, you must post the availability of your property on the internet. This task will have to be up to you, and sometimes it can be exhausting answering to the all the doubts and questions that can come up. You always have the alternative of hiring a real estate agency that will solve all these topics for you. In all probability, they already have a customer portfolio ready for your property, all while making the access to all necessary paperwork easier. (if you have some doubts about all the process, please contact CDBRentals).