Short-term rental – whether to vacationers, business travelers, or weekend guests – has developed in recent years into an attractive opportunity to generate higher income with a property than with traditional long-term rental. Platforms like Airbnb, Booking, or FeWo-direkt make it easier than ever to offer an apartment flexibly, and many landlords discover an opportunity to use housing more profitably or avoid vacancy. At the same time, short-term rental brings new rules, organizational challenges, and tax particularities.
1. What Short-Term Rental Actually Means
Short-term rental encompasses all stays that aren't booked for months or years but only for days or weeks. The concept is simple: your apartment is used like a small, privately operated apartment – sometimes by tourists, sometimes by business travelers or assembly workers, sometimes by people who temporarily need accommodation. Especially in good locations, even low occupancy can lead to income significantly above traditional cold rent.
This combination of return and freedom makes short-term rental so attractive. However, the model is more demanding than traditional residential rental, as tenant turnover is significantly more frequent and thus also the organizational effort.
2. The Opportunities of Short-Term Rental
The most obvious advantage is potentially higher income. In many regions, occupancy of just 10 to 14 days per month is sufficient to reach the income of long-term rental. Tourist hotspots or cities with many business travelers can especially quickly generate stable income. Added to this is flexible personal use: those who own an apartment in a beautiful vacation region can use it themselves regularly and still rent it profitably.
Another plus is lower long-term dependency on individual tenants. Since guests stay only briefly, there are no tenant protection problems, no delays in terminations, and practically no risk of rental nomads. For many landlords, it's reassuring to maintain full control over the property.
3. The Challenges You Should Know
Where there's light, there's shadow – and short-term rental brings some challenges that shouldn't be underestimated. Administrative effort is higher, as regular cleaning, key handovers, guest communication, and organizational processes are part of daily business. Without digital tools, this can quickly become time-intensive.
Added to this is seasonality. Vacation regions usually have strong fluctuations between summer and winter, while cities are influenced by trade fairs, events, or vacation schedules. A realistic business plan considers such fluctuations and plans corresponding reserves.
4. Legal Framework – What Landlords Really Need to Consider
The legal area is often the greatest uncertainty for private landlords. Many cities – especially Berlin, Munich, Hamburg, and Cologne – have introduced misappropriation statutes. These are intended to prevent housing from being completely converted into vacation apartments. Depending on the region, you may need registration, a permit, or must adhere to certain quotas, such as a maximum number of rentable days per year.
Registration requirements also play a role: guests must fill out a registration form that landlords must keep for one year. Many platforms make this easier, but responsibility remains with the landlord.
Tax-wise, short-term rental also differs from traditional rental. While long-term rental is VAT-exempt, short-term rental can become subject to VAT – unless you use the small business regulation.
5. Equipment and Guest Comfort – What's Expected Today
For short-term rental to remain successful, modern, clean, and functional equipment is crucial. Guests expect a comfortable bed, well-equipped kitchen, fast WiFi, blackout options, and often also a practical workspace. Equally important is a smooth arrival experience. Many landlords today use digital door locks or key boxes to make check-in independent of personal appointments.
With equipment, the principle applies: neutral, high-quality, easy-care. A uniform style, clean lines, and durable materials lead to better reviews and lower repair costs.
6. Pricing, Occupancy and Digital Tools
A good pricing strategy is essential. Many platforms now offer dynamic pricing that automatically considers seasonal fluctuations, demand, and local events. Such systems can increase income and reduce vacancy. At the same time, it's worth consciously planning minimum stays, weekend prices, or seasonal differences.
Without digitalization, short-term rental quickly becomes labor-intensive. Modern tools handle guest communication, cleaning calendars, invoicing, payment processing, check-in, and even part of tax documentation. Those who use these tools can often reduce managing a vacation apartment to just a few hours per week.
7. Insurance and Security
Short-term rental involves different risks than traditional rental. In addition to solid building and contents insurance, liability insurance for owners is essential. Many platforms offer additional insurance packages covering damage by guests or inventory losses.
8. Best Practices for Satisfied Guests and Positive Reviews
Good reviews are the heart of successful short-term rental. Fast, friendly communication and a clean apartment condition are crucial. Clear instructions for check-in, waste separation, appliance operation, and WiFi build trust. Many landlords also use small personal gestures like a welcome card, bottle of water, or local recommendations – little things that make a big impression.
Conclusion
Short-term rental offers private landlords excellent opportunities: high income, flexible use, and the possibility to shape one's own property more actively than in traditional long-term rental. At the same time, it requires good understanding of legal frameworks, modern equipment, and conscientious organization. With digital tools, clear structure, and an open eye for guest needs, a vacation apartment or city apartment can become an extremely profitable and simultaneously enriching source of income.