Investing in short-term rentals on Lake Garda: our tips for maximising returns

More and more investors, both Italians and foreigners, are choosing to buy properties on Lake Garda for the short-term rental market. This trend is favoured by several factors, including the growth of tourism, the flexibility of this type of lease and the possibility of obtaining an attractive return on one's investment.

However, it is important to remember that investing in short-term rentals is not without risk. All factors involved must be carefully considered, from choosing the right property to the efficient management of the business. Only with careful planning and professional management can returns be maximised and risks minimised.

In this article, we will try to delve into the opportunities and risks associated with short-term rentals, with useful tips for those wishing to undertake this type of investment.

In particular, we will focus on:

• How to choose the right property
  
• Real yields: is over 5% possible?
  
• The types of property that yield the most
  
• Legal and fiscal aspects: essential requirements
  
• Running your business efficiently: how to maximise profits

How to choose the right property

Choosing the right property is crucial to the success of a short-term rental investment. Several factors must be taken into account, including:

• The location: the property must be located in an area with a good demand for short rentals, such as a tourist town or an historic centre. In this sense, Lake Garda, with its breathtaking scenery, picturesque villages and numerous tourist attractions, is a popular destination for millions of visitors each year and ideal for this type of rental, with returns that can be higher than the national average.
• The characteristics of the property: the property must be in good condition and equipped with all the necessary amenities for guests, such as Wi-Fi, air conditioning, an equipped kitchen and, if possible, a breathtaking view of the lake.
• The square footage: the property must be of a suitable size for the number of guests you wish to accommodate.
• The costs: it is important to carefully evaluate all costs associated with the investment, such as the purchase of the property, renovation (if necessary), taxes, utilities and rental management.

Real yields: is over 5% possible?

Many real estate agencies boast dream yields for short-term rentals, often exceeding 5%. But is this really the case? The truth is quite different. First of all, that 5% refers to the gross yield, before deducting taxes (dry coupon 21%) and does not take into account all local taxes (IMU and TARI), utility bills, maintenance costs and property management (agency, portals, cleaning, laundry).

So how much do you really earn? On average, the net return is around 3-3.5%. Of course, this value can vary depending on several factors that we have mentioned above.

The types of property that yield the most

Which properties yield the most? There are certain types of properties that tend to yield the most in terms of short rentals. According to our experience, which is based on a well-established relationship with builders, sales and short rentals, the types of properties that guarantee the highest returns are

• Three-room apartments with two bathrooms: these properties are perfect for families or groups of friends, offering greater comfort and the possibility of accommodating several people.
• Detached villas: detached villas - semi-detached or detached - especially if they have a private pool, are very popular with tourists.

Legal and fiscal aspects: essential requirements

Before embarking on the adventure of short-term rentals on Lake Garda, it is essential to find out about the legal and fiscal aspects of this activity. Here are the main fulfilments:

• Authorisations: Obtain the necessary authorisations from your municipality to rent a property on a short-term basis.
• Tax declaration: Correctly declare income from short-term rentals to the tax authorities by keeping accurate accounts.

Running your business efficiently: how to maximise profits

In order to optimise the returns on your Lake Garda short-term rental investment, efficient management is crucial. Here are some valuable tips:

• Online booking system: Implement an online booking system to receive requests at any time and from anywhere.
• Online check-in and check-out: Facilitate the arrival and departure of guests with an online check-in and check-out service.
• Flexible pricing: Adjust your short-term rental prices according to season, demand and events, maximising the occupancy of your property.
• Impeccable customer service: Offer impeccable customer service, responding promptly to guest requests and resolving any issues efficiently.

In conclusion

Investing in short-term rentals can be an excellent opportunity to earn an attractive return on your capital. However, it is important to carefully evaluate all the factors involved and choose the right property. With the right planning and management, you can maximise returns and create a successful business and enjoy the benefits of owning a property in one of Italy's most desirable locations.

Turning your second home on Lake Garda into a passive, stress-free source of income can seem like a daunting task. But with our partner Booking Garda Lake by your side, everything becomes simple and profitable.

With a constant flow of guests and complete management, from property promotion to reservations management, from guest check-in and check-out to ordinary and extraordinary maintenance, Booking Garda Lake allows you to enjoy the benefits of your investment without stress.

Contact us today to turn your Garda property into a source of passive, stress-free income!