Is it worth investing to rent out an apartment by the day?
There are many professionals, with stable income, who are investing in buying apartments for their daily rental.
The trend is also growing from entrepreneurs who rather prefer the purchase of some properties in order to develop short-term rental activity.
But, at a time when in the main areas of the capital, daily rental prices vary on average from 25 to 45 euros a night, for many individuals who have only 1 property, keeping it open as a daily rental business is considered unprofitable.
"For a few months now, I have returned the apartment near "Shallvareve", which I rented daily, for long-term rental, due to the high costs for maintenance and commission fees on international platforms. 40% of monthly income went to property maintenance and booking commission fees.
While with the imposition of 20% VAT for Booking commissions and the payment of 15% of the annual income from taxes, it turns into an unprofitable business", says GJ.K, the owner of an apartment bought in Tirana for the purpose of renting.
But the return on investment through rent remains unrewarding even for long-term leasing. Real estate agencies calculate that the investment return time through rent in Tirana varies from 20 to 25 years, due to the high purchase prices of an apartment (minimum 1,000 euros per square meter) and low rent.
Many Albanians have preferred to make this investment abroad rather than in Albania. Mainly the most preferred place remains Dubai, where the investment return time through leasing is calculated up to 7 to 10 years, due to cheaper property prices and more expensive rent.
In terms of the profitability of the investment, even Dritan Laci "Guest House Laci" says that it still does not consider it a profitable venture, since the average time of stay per month is low and the costs for running it remain high.
Despite the fact that expectations remain positive for the progress of the demand, the formalization of the sector according to him will be an unbearable burden for these structures.
So far in the form that daily rental businesses have operated according to real estate agents, the most profitable is the management of a portfolio of several properties, a model of activity that is rather being developed by agencies.
*Article from monitot.al