Did the pandemic affect your vacation home and your economy? Wait! The Squid Game is not the solution. 4 tips to avoid this..
There is no doubt that the pandemic greatly affected the tourism sector and we have not fully recovered yet; Many things changed, the economic losses were massive, tourist companies went bankrupt, others decided to switch from the vacation rental industry to long-term rental. Now, the demands of the guests are greater, the introduction of new technologies to our vacation homes have become more than necessary, practically mandatory, due to a security issue.
The large management chains of vacation homes and online platforms, had millionaire losses, such as airbnb, booking, among others, but the strongest blow was undoubtedly those small and medium-sized companies that did not support the maintenance of the costs of services that still they continued to generate losses, despite some subsidies and aid that governments granted.
At this point, some companies cannot get up from that crisis, that is why, from Chekin and before you succumb to participating in some macabre Korean game, we will give you some tips that could be your salvation.
1- ’Manage I.V.A better: Although you may not believe it many times the issue of taxes can be a headache if you do not know how to handle it, indeed, many times we do not even know if our activity is excluded. Of course, tourism is one of those that must be declared, but how do I manage it better? How do I ensure that this does not affect economically?
The Sync.rentals company tells us that we must know certain situations in order to know where we are standing. First of all, what service do I provide? What are the services for which I.V.A could or should pay?
The hospitality service is marked as one of the most pechable services by I.V.A. Now, what does the hospitality service entail?
- Cleaning of the apartment at the entrance and exit of each reservation.
- Bed linen change before and after check-in / check-out.
- Cleaning of common areas.
- Technical assistance and maintenance for eventual plumbing, electricity, glassware, blinds, locksmith and electrical appliance repairs.
If you do not provide any of the aforementioned services, you do not provide a hospitality service, so, in this case, your activity is exempt from VAT. As the owner, you do not issue invoices, but receipts without VAT to the end user.
In general, the income derived from the rental of tourist apartments will be considered income from real estate capital. For this qualification to be applicable, the rental must be limited to the mere provision of a property for a period of time, without being accompanied by the provision of services typical of the hotel industry. In the event that you hire a management company to market your vacation rental, it is an operation subject to VAT at the rate of 21% and withholding of 19% (in personal income tax), which must be retained by the manager and paid to the Treasury in your name ( owner). Booking and Airbnb are only intermediaries or commission agents since they charge you for the intermediation and it is you who issues the receipts to the guest.
2.-Renting your house for filming is an alternative that is on top: Yes, you sure laughed when you read this and you said, but how I manage to rent it for a filming, from where I get the production company, is crazy !. Well no, believe it or not, there are many companies that search online for spaces where they can record their productions, it is cheaper than setting up a whole film set. There are production companies that can give you up to 1,500 euros for a month’s rent or weeks. Are you interested? There are many platforms that are dedicated to connecting owners with audiovisual companies, very similar to Airbnb, just search them in google, register and wait for them to call you to record the next season of the Squid Games or perhaps the Casa de Papel, who knows.
3.-Establish the best prices in the market: This is never easy to calculate or to know, knowing the neighbor’s prices is important to put ourselves in the market at the correct price, but sometimes, that alone is not enough, it is also necessary to evaluate Other aspects such as, what services did I provide that other homes do not provide? What are my reservation strategies? Do I have many gaps in my reservation calendar? What type of tourist am I trying to attract? All these questions you should answer calmly, in order to focus your comparison on the correct accommodations and thus be able to know if my prices are the adjusted ones in the market. In the same way, we have talked a lot about this in previous posts, just do a detailed review of this article by clicking here, which we published in previous weeks, in which we show you 4 tips to design the rental price of your vacation home.
4. Automate your checkins: This is the simplest task, but the most important. The automation of your registrations is fair and necessary, we know that many hosts like to contact their guests and do it all in person, go to the old school, noting the entries and exits on a paper, or on the computer, but, this could bring you more expenses and above all waste of time, which you should invest in something else; in giving better attention to your guest, for example. From Chekin we want to show the advantages of having a service that helps automate your registrations, give your guests a safer stay and without paperwork to fill out, all from your mobile and in seconds.
These are some of the tips that we want to offer you to help you in these moments when perhaps your earnings are not as expected, helping you balance them is our ultimate goal. We hope you take advantage of them!
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