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Holiday Rental vs. Seasonal Rental: Everything You Need to Know

07/23/2024

3 minutes read

Holiday Rental vs. Seasonal Rental: Everything You Need to Know

Are you thinking about renting out your property and unsure whether to choose between a holiday rental or a seasonal rental? Don’t worry! Here we explain the key differences so you can make the best decision and get the most out of your property.

What is a Holiday Rental?

A holiday rental is a perfect option for those looking to rent out their property short-term to tourists.

According to Decree 75/2020, of August 4th, on tourism in Catalonia, tourist accommodation establishments offer temporary lodging and other tourist services in a habitual and professional manner, with the necessary authorization and for a price. These accommodations cannot become permanent residences, except for rural tourism establishments.

Since holiday or tourist rentals are involved, they are excluded from the scope of the Urban Leases Act (LAU).

The purpose of this type of accommodation is profitable, and their promotion is carried out on specialized platforms such as online travel agencies (OTAs).

Another aspect to consider is that municipalities and autonomous communities can establish additional requirements to regulate holiday rental properties.

What is a Seasonal Rental?

A seasonal rental is ideal for property owners who wish to rent out their property for longer periods without committing to a long-term lease.

A seasonal rental is considered a lease for a use other than permanent housing and, unlike a holiday rental, is regulated by both the Urban Leases Act and the Civil Code.

The LAU defines this type of lease as “urban property leases for seasons, for an industrial, commercial, artisanal, professional, recreational, welfare, cultural, or teaching activity, regardless of the individuals involved.”

Key Differences Between Both Types of Rentals

  • Regulation: Seasonal rentals are governed by the LAU and the Civil Code, while holiday rentals are subject to regional tourism regulations.
  • Contract: A holiday rental contract is only mandatory in some autonomous communities, while a seasonal rental must always be formalized with a signed contract between the owner and the tenant.
  • Services: Seasonal rentals do not include complementary services, but in a holiday rental, additional services such as cleaning and reception can be offered.
  • License: Holiday rentals require a tourist license and registration in the Tourism Register of the corresponding autonomous community.
  • Rental Duration: Seasonal rentals are intended for long stays, starting from 32 days, whereas holiday rentals are for short stays, up to 31 days.
  • Purpose of Rental: While holiday rentals are exclusively for tourists, seasonal rentals can have multiple uses, from commercial to cultural.

Which Type of Rental is Better for You?

Each type of rental has its advantages and may be more suitable depending on your property’s characteristics and location. For example, if you have a property on the coast, a holiday rental could attract tourists all year round. On the other hand, a seasonal rental may be ideal for professionals needing to reside in a specific area for a few months.

At Placid, we understand that each property and location has different potential. We are here to help you choose the best option for renting out your accommodation.

Interested in Maximizing Your Property’s Performance?

If you are considering a holiday rental, at Placid, we help you make the most of your property.

Contact us now and discover all the advantages of listing with us!

 

 

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