2023-08-28 07:11:09
Monday, August 28, 2023, 07:11
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There are many who trust the brick to make their savings shine. Anyone who has an accumulated amount in the bank, looks for the formula so that this amount does not lose value due to inflation. One of the busiest roads when it comes to putting our money to work is real estate investment. Housing is the star asset, since we have all been related to the procedures involved in a mortgage or a rental and we have enough skills to become small holders and enjoy recurring income.
However, what may not be so clear is whether it is better to opt for residential or tourist rental. Both modalities have their pros and cons. On the long-term rental side, we are sure that we will be charging a fixed monthly payment without incident, although it may be the case that non-payments occur and a tedious legal process must be initiated. A good tenant It gives economic security, in addition to having, of course, the house much more well cared for, something that entails whether or not your home is a place of passage.
With the vacation rental, we will obtain more money, but since the stays are shorter, the guests will have to be followed up more continuously, which implies time and effort. This management of reservations does not prevent us from having antisocial behavior problems, as there are tourists who pass through the house like an earthquake and, in addition to bothering the neighbors, they break things. On the other hand, by having the house empty for seasons, we would risk a possible illegal occupation.
In Logroño, among the factors that will tip the balance towards short-term or traditional rentals is also our own personal situation. Perhaps we prefer the vacation rental because we plan to spend a few months in the house each year. Or we prefer the tourist one because the task of serving travelers represents a complete professional opportunity for us.
Residential vs. tourism: how is the rental in Logroño
According to INE data, of the almost 320,000 inhabitants who lived in La Rioja in 2022, around 47% are concentrated in Logroño. The Rioja capital is, with more than 150,000 inhabitants, the most densely populated city in the region, quite a distance from the next in the ranking, which is Calahorra (24,654). Behind these two enclaves, there are only three municipalities with more than 10,000 inhabitants: Arnedo (15,017), Haro (11,634) and Lardero (11,094).
Proud capital of wine tourism, Logroño attracts thousands of tourists every year, not only for its wines, but also for the tapas that accompany them, making Laurel Street and its surroundings abuzz. Beyond the hotel offer, Logroño is also dotted with tourist apartments, covering most of the almost 600 that La Rioja had last June. With an average price per night of 157 euros and 1,099 per week, according to Likibu, staying in the capital of La Rioja brings in a not inconsiderable income for the owner.
Regarding traditional rent, according to the latest report on rental prices, pisos.com offers a less optimistic view. The typical rental apartment in La Rioja registered an average price of 4.69 euros per square meter in July 2023, which represented a monthly decrease of -2.09%, the highest in Spain. Compared to July 2022, the cut was -19.55%, the second most striking in the country. As for the capital, Logroño marked in that same month an average rental price of 8.24 euros per square meter, placing it among the most affordable capitals in Spain. With a monthly increase of 1.07% and a year-on-year increase of 6.83%, a 90-square-meter apartment for rent in Logroño would cost around 422 euros. Undoubtedly, the tourist rental would be more profitable, since in a single week you would get what you get in a month with a long-term tenant.
Apart from the purely economic level, we must also take into account issues such as taxation, which has more edges in the case of tourist rentals, in addition to regional and municipal regulations. On the residential rental side, we cannot lose sight of the implications of the new Housing Law. For the director of Estudios de pisos.com, Ferran Font, this regulation “gives greater protection to the tenant and establishes price limits on rentals, so it is not surprising that we are witnessing a greater effervescence of tourist rentals.”
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