Chalet Vega
3. April 2023
Dynamic pricing for vacation rentals: a guide to optimizing your returns.
16. February 2024
6 Things You should Consider for the Successful Rental of Your Holiday Apartment in Austria
Renting a holiday apartment can be a great source of income, especially in Austria’s tourist regions. However, particularly for first-time rentals, there are several things to consider, including legal and tax aspects.
Legislation and requirements
Dedication and consent
One of the first tasks in renting out your holiday apartment is legal dedication. In Austria, you can’t rent out an apartment to tourists without the right permissions. Depending on the location of the apartment, a holiday dedication may be required. If your apartment is in a building with others, you might need their permission before you start renting to tourists. For tenants, this means that the owner's consent is required before you can sublet your rental apartment.
Business registration
Another important consideration is the question of business registration. In Austria, the need for a business registration depends on the type of rental. If you're only offering a place to stay with no services, it's considered a room rental and you often don't need to register as a business. However, as soon as additional services, like cleaning the rooms or providing bed linen and internet access are included, this is considered business activity. Private room rental is only possible for up to 10 beds in your own property. If people not belonging to the household are employed, this is always considered an accommodation business.
Taxes and duties
If you rent out a holiday flat in Austria, you will have to pay various taxes and duties. Income tax is payable if you earn income from the letting. It is important to declare this income correctly in your tax return. VAT may also be relevant, especially if you offer additional services. In principle, accommodation is subject to the reduced tax rate of 10%. Furthermore, in most cases you are obliged to pay a local tax, which varies depending on the location of the holiday flat. The local tax is independent from the accommodation price and is used to maintain local infrastructure such as maintenance of the trails, ski bus, cross-country ski trail maintenance, signposting, etc. For the area of the Ötztal Tourismus Association, for example, the tourist tax is set at € 4.00 per person per overnight stay and must be paid to the tourist association when the guest registers.
By paying the correct taxes and duties, you avoid potential legal problems and ensure that your rental activity complies with Austrian law.
Security standards and data protection
The safety of your guests is the most important thing. Make sure that your holiday flat meets all essential safety requirements. This includes functioning smoke detectors and secure locks on doors and windows. Just as important is the protection of your guests' personal data. Make sure that you keep all the information you collect secure and handle it in accordance with data protection laws. This includes information such as names, dates of birth and passport numbers of your guests.
Insurance for holiday apartments
It is advisable to combine various insurance options for your holiday home.
Building insurance covers damage to your property itself. Natural hazard insurance offers protection against natural events such as flooding or storms. Commercial household insurance is useful to cover damage caused by guests or break-ins. Note that tourist rentals are often regarded as commercial activities, which means that such damage is usually not covered by normal household insurance. Public liability insurance is also important, as it protects you against liability claims in the event of accidents involving tenants.
These insurances offer you as a landlord more security and help to avoid unexpected costs.
The role of a letting agency
Managing a vacation home can be complicated. A specialist partner for rental and marketing can help you with this. These agencies offer many services that make things easier:
- Pricing: Agencies adjust rates according to the season and monitor current market trends.
- Marketing: Ensures that your apartment is highly visible and booked on various online platforms.
- Guest communication: Takes care of communication with guests in the event of questions or concerns, from inquiry to departure.
- Key handover and check-in: Check-in and key handover can be organised in different ways - contactless or physical.
- Guest registration: Registers guests with the local authorities as required by law.
- Cleaning and laundry service: Makes sure that cleaning is organised and laundry is ready. An absolute must for rentals.
- Collection and invoicing: The agency takes care of the collection of bookings and ensures that guests receive their invoice on time.
With a rental agency at your side, you can concentrate on other things while your vacation home is professionally looked after. We at keyone also offer these services so that you can sit back and relax. If you would like to find out more about our range of services, please send us a no-obligation inquiry. A rental expert will contact you to clarify the requirements for the initial rental of your vacation home.
Stay tuned to our blog for more tips and information on holiday home rentals.
