What is the average profitability of a vacation home?
In recent years, more and more property owners are asking a simple but decisive question: How much do you really make from short rentals?
And right after that: what is the average profitability of a vacation rental compared to other forms of rental?
Legitimate questions, especially in a context where the tourism market has grown but also become more competitive, regulated and complex.
In this article I want to respond in a way Concrete, transparent and based on real numbers, clarifying what to expect from short rentals today and how to properly assess the profitability of a vacation rental.
How much do you make from short rentals?
The correct answer is: depends, but within very precise ranges.
On average, a house intended for short-term rentals. Can generate from 20% to 60% more compared with a traditional annual lease.
But beware: turnover is not profit.
To understand how much you really make, you need to consider at least these factors:
- Location (primary, secondary or emerging tourism)
- Property type (apartment, villa, number of rooms)
- Actual seasonality (not theoretical)
- Placement level (average price/night)
- Operating costs (housekeeping, maintenance, utilities, errands)
- Business strategy and distribution
A practical example
A well-located tourist apartment can bill:
- 15.000 - 25.000 € annual gross in secondary locations
- 30.000 - 60.000 € annual gross in established tourist locations
- Even beyond 80.000 € for villas or premium properties
But the true data to watch is the net margin, not turnover.
What is the average profitability of a vacation home?
Speaking of realistic and sustainable numbers, the average net profitability Of a vacation home today lies between:
the 5% and the 9% net annual,
with higher peaks only in very well-managed cases or in high-end properties.
This percentage is already net of costs, and should be compared with:
- 2-3% average of a classic residential lease
- Returns often more uncertain than other financial instruments
Beware of a common mistake
Many owners assess profitability based on ideal scenarios, not real:
- employment at 100%
- overly optimistic average prices
- underestimated costs
- management time not valued
The result? High expectations and concrete disappointments.
Short-term rentals yes, but with a sustainable model
Short-term rentals really work When:
- the risk is under control
- costs are certain
- income is predictable
- management is professional
And it is precisely from this need that the RevenHome.
RevenHome: from theoretical profitability to guaranteed profitability
With RevenHome, we have turned the classic paradigm of short-term rentals upside down.
Instead of promising hypothetical turnovers, we offer owners a certain income, through the model of the “vacuum full”:
- Seasonal guaranteed fee
- Amount agreed upon before, not after
- No risk of employment holes
- No variability in collection
- Management fully in our charge
The owner knows how much does he earn, when e without surprises.
So: is it worth investing in short-term rentals?
The answer is yes, But only if you think in terms of real profitability, not of dreams.
Short-term rentals are a powerful tool
But they require expertise, numbers and vision
Most importantly, a model that protects the owner from the risk
Conclusion
If you are wondering. how much do you earn from short term rentals or what is the average profitability of a vacation home, the answer is not a magic percentage, but a method.
A method that transforms the tourism potential of your property into stable, predictable and sustainable income.
This is exactly what we do every day in RevenHome.
Manuel Gruni