Property Management

Holiday rental homes vs. tourist apartments: what are the key differences?

tourist apartment

In the short-term rental industry, the terms holiday rental home and tourist apartment can often cause confusion, especially for those new to the market. While both refer to accommodations for tourists, they differ significantly in their legal, operational, and tax requirements. This article breaks down the differences to help you manage them effectively.

What are holiday rental homes and tourist apartments?

To understand the distinctions, it’s essential to start with their definitions:

  • Holiday rental home: Refers to a residential property temporarily rented out to tourists. Owners or managers must comply with specific regulations and register the property with the relevant authorities, depending on the region.
  • Tourist apartment: Refers to a property classified under regulated tourist accommodations. These apartments must meet specific quality and service standards and are often managed as business entities, typically within buildings dedicated exclusively to this purpose.

Key differences between holiday rental homes and tourist apartments

Although both provide temporary lodging, the differences between holiday rental homes and tourist apartments are substantial:

1. Property usage

  • Holiday rental home: These are residential properties adapted for short-term rental, often located in mixed-use buildings alongside permanent residents.
  • Tourist apartment: These are purpose-built properties designed exclusively for tourism, with specific licenses and professional services like front desk support or daily cleaning.

2. Legal regulations

  • Holiday rental home: Regulations vary by region. Many areas require registration in a tourism registry, compliance with basic standards (e.g., fire extinguishers, an emergency contact number), and adherence to local building rules.
  • Tourist apartment: Subject to stricter rules similar to hotels, including accessibility standards, mandatory services, and in some cases, star rating categorization.

3. Taxation

  • Holiday rental home: Rental income is typically declared as personal income unless additional services like cleaning or breakfast are provided, which classify the activity as a business.
  • Tourist apartment: Operates as a business, requiring compliance with taxes such as VAT and, if registered as a legal entity, corporate income tax.

4. Management and operations

  • Holiday rental home: Often managed by individuals or small businesses. While offering greater flexibility, service options are more limited.
  • Tourist apartment: Requires professional management with dedicated staff and added services such as 24/7 reception, daily housekeeping, or maintenance support.

Pros and cons of each model

Both types of accommodations have advantages and disadvantages, depending on the owner’s objectives:

  • Holiday rental home: Offers more flexibility and requires lower upfront investment but may face community disputes and stricter local restrictions.
  • Tourist apartment:Provides greater stability and higher long-term income potential but demands significant initial investment and professional management.

How to ensure compliance with regulations

Whether managing a holiday rental home or an tourist apartment, adhering to regulations is critical. Follow these key steps:

  1. Review the specific legislation in your region.
  2. Register the property with the relevant authority.
  3. Meet technical and safety requirements (e.g., fire extinguishers, signage).
  4. Adopt technological solutions like noise monitoring to maintain good relationships with neighbors.

Conclusion: holiday rental homes and tourist apartments

Choosing between managing a holiday rental home or a tourist apartment depends on your goals, resources, and local regulations. At Roomonitor, we provide advanced technological solutions to help you stay compliant, streamline operations, and deliver the best experience for guests and neighbors alike. For more information, get in touch today.